Published on October 29, 2023, 8:55 pm

TLDR: Digital transformation is difficult because it requires fundamental changes to a business and goes beyond adopting new technologies. Cloud technology will be the foundation for future digital transformations, focusing on customer experience and virtual-first environments. The use of mixed infrastructure is increasing, combining private IT infrastructure with public clouds and edge locations. However, managing this diverse infrastructure poses challenges. Businesses are realizing that different applications have unique complexities, requiring tailored cloud solutions. Container sprawl and governance are challenges organizations face in managing cloud technology effectively. ESG practices and sustainability align well with simplicity, security, and hybrid cloud solutions. Key takeaways include leveraging multiple IT infrastructures, consistent application management across cloud environments, and addressing data-driven infrastructure requirements. Overcoming security, governance, and cost control challenges is a priority for organizations. Aligning simplification, security, and sustainability with business goals is crucial for successful digital transformations.

Digital transformation is a buzzword that is often thrown around in the business world. It’s easy to say, but implementing it can be challenging. Despite learning from past experiences and the experiences of others, failures in digital transformation continue to occur. So why is it so difficult?

One argument is that digital transformation involves making fundamental changes to the core of a business. It goes beyond simply adopting new technologies and optimizing processes. It requires transforming every aspect of the business, from backend operations to frontend customer experiences.

According to Gartner, a leading research and advisory company, 75% of organizations will adopt a digital transformation model centered around cloud computing by 2026. This prediction shows that cloud technology will serve as the foundation for future digital transformations.

Sid Nag, Vice President Analyst at Gartner, states that the next phase of cloud growth will focus on customer experience, digital outcomes, and the virtual-first world. This shift highlights the importance of leveraging cloud technology to drive successful digital transformations.

A recent study by Nutanix called the 5th Annual Enterprise Cloud Index (ECI) reveals an increase in the use of mixed infrastructure among organizations. This means that businesses are combining private IT infrastructure with public clouds and edge locations to meet their diverse needs. However, managing this diverse infrastructure poses challenges for IT professionals who need unified solutions to manage and secure applications and data effectively.

During a dialogue with FutureCIO, Aaron White, General Manager and Vice President of Sales for APJ at Nutanix, highlighted the evolving perception of cloud computing among businesses and users. While there was once a belief that one core cloud solution could meet all requirements, it has become evident that different applications have unique complexities that may result in higher costs when migrated to the cloud.

White emphasizes that managing existing data in on-premises data centers can be challenging compared to managing cloud-native applications. As a result, businesses are now focused on finding secure and cost-effective cloud solutions tailored to specific application requirements.

One challenge that arises with the increasing adoption of cloud technology is container sprawl. Containerization, which gained popularity with Docker in 2013 and Kubernetes in 2017, allows for efficient deployment and management of applications. However, organizations struggle with designing and configuring the underlying infrastructure, storage, and database services for their Kubernetes deployments.

White acknowledges that governance is necessary to manage the simplicity of today’s technologies. He suggests using solutions that provide detailed reporting on cluster utilization and utilize artificial intelligence and machine learning to project future utilization. With proper cloud application lifecycle management, containers or virtual machines can be efficiently managed from creation to disposal.

The complexity of IT has grown over the years due to various factors such as business demands for customized solutions and the democratization of technology. However, Aaron White believes that environmental concerns and sustainability will prompt organizations to reevaluate their technology strategies.

He states that simplicity, security, ease of use, and hybrid cloud solutions align well with the growing focus on ESG (Environmental, Social, Governance) practices and sustainability. This convergence presents an opportunity for organizations to address these concerns while streamlining their IT operations.

The key takeaways from the 2023 ECI report are as follows:

1. IT teams should leverage multiple IT infrastructures to meet diverse needs—a market requirement highlighting the importance of hybrid multi-cloud solutions.

2. Managing applications consistently across different cloud environments is a top priority for organizations.

3. Data-driven infrastructure requirements are crucial as the amount of generated data continues to increase rapidly.

Addressing challenges related to security, governance, and cost control across multiple environments remains a priority for organizations. Unifying different priorities such as simplification, security, and sustainability requires careful alignment with business goals.

In conclusion, digital transformation is a complex process that involves fundamental changes across all aspects of a business. Cloud computing serves as a key driver for successful transformations by providing the underlying infrastructure. Organizations should focus on leveraging multiple IT infrastructures, managing applications uniformly, and addressing data-driven infrastructure requirements. By doing so, they can navigate the complexities of digitalization and achieve their business goals effectively.


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