Technologies are described for implementing a migration mechanism in a storage system containing multiple tiers of storage with each tier having different cost and performance parameters. Access statistics can be collected for each territory, or storage entity, within the storage system. Data that is accessed more frequently can be migrated toward higher performance storage tiers while data that is accessed less frequently can be migrated towards lower performance storage tiers. The placement of data may be governed first by the promotion of territories with higher access frequency to higher tiers. Secondly, data migration may be governed by demoting territories to lower tiers to create room for the promotion of more eligible territories from the next lower tier. In instances where space is not available on the next lower tier, further demotion may take place to an even lower tier in order to make space for the first demotion.