Published on November 9, 2023, 3:49 am
Unlocking transformational business performance improvement requires secure software and data utilization at scale and with speed across the enterprise IT landscape. Cloud computing is the solution that offers these capabilities, but for larger businesses with specific requirements, the process is more complex.
Take, for example, a financial institution that desires the benefits of cloud computing. However, their legacy applications are hardwired into existing systems and processes, making the transition to the cloud challenging. Factors like data gravity, security and regulatory compliance, as well as the cost and complexity of critical applications, make it clear that moving to the cloud is not a simple task.
Despite these challenges, there are opportunities for businesses to leverage cloud technology. With innovations such as Software-as-a-Service (SaaS), companies can benefit from operational advantages by renting software on demand. In fact, Statista estimates that in 2021, there was an average of 110 SaaS-based applications per business compared to just 12 five years ago.
However, before embarking on a cloud migration journey, it’s crucial to be aware of potential pitfalls. Research conducted by McKinsey revealed that one-third of cloud migration projects fail. Additionally, 75% of cloud migrations exceed budget expectations, while 27% experience delays.
To shed light on this topic further, Craig Fulton from IBM Consulting emphasizes that different expectations exist regarding cloud adoption. Initially centered around technological aspects such as cost reduction and increased agility, organizations are now looking towards business innovation and revenue generation when leveraging the cloud.
Fulton believes that a hybrid multi-cloud approach is worth considering even if not all applications end up in the public cloud. This approach allows businesses to integrate multiple clouds and manage them through a unified security model and architecture. It’s important to understand that most environments comprise a combination of on-premises infrastructure and niche clouds for specific purposes like data analytics.
Transitioning to a hybrid multi-cloud environment requires careful planning and acquiring the necessary skills. While cloud-related skills are essential, organizations must not overlook the importance of resilience and availability in hybrid environments.
To ensure a successful transition, it’s crucial to align the cloud strategy with the broader business strategy. Cloud technology should enable the organization’s objectives rather than being implemented merely for the sake of technology. Additionally, having a comprehensive plan helps mitigate challenges and optimize the migration process.
In terms of resource allocation, Fulton suggests taking both an innovation-driven and technology-driven approach. Balancing these two perspectives is vital. Starting from a top-down perspective ensures a clear understanding of what needs to be built, while bottom-up implementation focuses on building the necessary foundation before progressing further.
Mastering the art of integration in a hybrid cloud environment involves considering various factors and adopting strategic approaches. To gain more insights into this topic, watch Craig Fulton discuss the requirements for successful integration in the VODchat video provided above.
In conclusion, unlocking transformative business performance improvement through secure software utilization necessitates careful planning and consideration of various factors. While there may be challenges along the way, businesses can benefit from cloud computing when approached strategically and with a comprehensive understanding of their unique requirements.