The Importance of Cloud Transformation Strategy and Services
Cloud technology has become a key component in today’s business IT strategies. According to statistics, a whopping 94% of enterprises utilize cloud services. As many as 92% of businesses have a multi-cloud strategy in place or one “in the works.” Projections for spending on public cloud services are anticipated to reach a staggering $1.1 trillion by 2026. As a comparison to consider future growth, this year’s spend is at a mere $531.7 billion – no small figure for sure, but in just a few short years it’s going to double.
This spending does not include private cloud and hybrid cloud infrastructures. While some invest in those, a growing segment of companies is actively choosing to invest in public cloud options. However, whatever infrastructure is chosen, cloud technology is here to stay. Leveraging its power enables enterprises to enjoy more flexibility, heightened reliability, stronger performance and better efficiency.
To get started on the cloud transformation journey, the first step is to accept the inevitable. Just like computers replaced typewriters and other legacy storage options decades ago, the cloud is quickly replacing PC hardware, pricey software installations, necessary software upgrades and corporate data centers. You want your enterprise to grow and remain competitive. Not investing in and integrating cloud technologies in your IT strategy is likely going to quickly put you behind the proverbial curve. You need cloud transformation, and to do that, you need a good cloud transformation strategy.
Let’s take a look at the importance of developing a cloud transformation strategy and migrating over to cloud services, along with how you can use them to boost your competitive advantage and remain relevant in your industry.
Cloud Transformation Strategy 101: What is Cloud Transformation?
Before you get started, it’s helpful to understand exactly what cloud transformation is and how it can fit into your corporate environment. As the above statistics indicate, the cloud is rapidly making a strong presence as it continues to grow in significance in today’s business landscape. Simply put, it’s a technology you can no longer ignore – the cloud is that powerful and pertinent.
By definition, cloud transformation is the process of a business migrating its software applications, hardware components, business data, infrastructure and other digital assets from on-premises infrastructure to cloud-based solutions. It’s not an easy feat and involves strategic planning to ensure you meet your business goals. It also requires investment and commitment.
A transition to cloud transformation and services is a big project that involves an IT overhaul since it encompasses all processes relating to running applications, managing relationships, storing data and other vital operational tasks. While migration is a big part of it, it does not make up the entirety of cloud transformation services. Once complete though, an enterprise can enjoy numerous benefits, including but not limited to scalability, cost-efficiency, collaboration and accessibility and stronger security.
Cloud Transformation Strategy 102: Benefits of Cloud Transformation
Okay. So you’ve answered the question “what is cloud transformation?” The next question to answer is: Why should you do it? Most businesses spend portions of their budgets on upgrades because of the tangible benefits they’ll gain from their investments. Adopting a cloud strategy is no exception. When your company invests in cloud transformation, you can expect the following:
Scalability and Flexibility
Anytime you do an overhaul – or even an upgrade – of your IT strategy, you need to consider both your current and future business needs. The cloud empowers you to do just that since it is highly scalable and gives you the level of flexibility you require now or down the road. With the cloud, you can obtain and pay for what you need, when you need it. As your business evolves, you can expand or adjust your cloud requirements to enable you to have the level of services you need. These adaptations can happen quickly, unlike on-premises processing and storage systems.
Cost-Efficiency
Your IT and the security required to safeguard your company’s data can take a big bite out of your budget. When you invest in cloud transformation, you eliminate many pricey elements out of your IT budget. This is because you can reduce or increase your services as you need on the fly since you do not need to buy new hardware or software to accommodate your needs.
Even better, you don’t buy the technology you need now only for it to become quickly obsolete. Since a primary component of your transformation is buying services instead of tech, your capital expenses can decrease when you invest in the cloud. You also save money on manpower since you don’t need a robust IT department to ensure your IT assets’ continuity and security – the partner you select for subscription cloud services can handle important tasks for you. This provides you the freedom to invest the funds you save on IT expenses back into your business.
Enhanced Collaboration and Accessibility
One of the premier benefits of cloud technology is the high level of collaborative and accessible opportunities. Your employees can work in-house, from home or on the road without any disruptions, since the applications they use can easily be accessed through their web browsers. Information is updated immediately, so there is no lag in obtaining current information. A cloud infrastructure is convenient and enables both real-time internal and external collaboration.
Stronger Data Security
Many believe that keeping data on-premises is a more secure option. The reality is cybercriminals are going to target businesses they believe do not have the ability or resources to adequately secure their data and networks. When you work with a cloud services partner, you can take comfort in the knowledge that this is their expertise and all they do, so they invest in extra precautions. After all, their own brand reputation depends upon it.
Unlike internal staff, a partnering company isn’t going to be distracted by the other operational areas of your business – their business is rooted in taking care of your data. They invest in encryption and extra layers of security to protect their infrastructures. This doesn’t mean there aren’t risks, but cloud strategies generally can improve security.
Cloud Transformation Strategy 103: Key Components of Cloud Transformation
To successfully transition your business to the cloud, you’ll need to focus on a few key components. Doing so will ensure a smoother conversion and set your organization up for success.
- Migration to Cloud Infrastructure. The initial stage typically comes with challenges since this is the timeframe when your company will likely experience hiccups or bigger problems. You will need to have the correct IT monitoring and management tools in place.
- Adoption of Cloud-Based Applications. Migrating to the cloud means you may need to switch to different software so your end users will use compatible applications designed for the cloud.
- Data Storage and Management. When transitioning to a cloud-based model for your organization, you’ll need to adjust to not storing and managing your data in-house the way you’ve historically done. Choosing the right cloud vendor is key.
Most enterprises are not internally equipped to perform cloud transformation on their own. While some may attempt going the DIY route, this rarely goes smoothly, and they end up working with a seasoned consultant in the end.
Working with an experienced IT company or managed services provider can go a long way towards helping you to make smart business decisions that will empower you to bring about the transformative change you need. Your knowledgeable partner can serve as your consultant, road mapper and planner.
Cloud Transformation Strategy 104: Developing Your Cloud Transformation Strategy
When it comes to the development of a good cloud transformation strategy, there is no one-size-fits-all approach. Every business will have its own journey. With that being said, there are a few strategic steps that are fairly standardized.
Assess Current Infrastructure
Before you get the ball rolling on your transformation, it’s critical to first assess your current infrastructure, including hardware, software, data and any integration points. It’s not as easy as plugging something in and hitting the on button. Changes will need to be made to your technology landscape’s foundation.
As you evaluate the pieces of your infrastructure, you’ll need to determine which components can easily migrate to the cloud without significant modifications. Next, analyze the rest of your infrastructure to see what needs to be retired and what can be modified.
Identify Business Objectives
Upgrading or transforming any technology should always align with your business objectives. Change for the sake of change in order to keep up with competitors isn’t going to drive the results you want unless you can align your technology with business objectives. Common objectives include:
- Agility
- Innovation
- Cost reduction
- Increased revenue
It doesn’t make sense to make tech investments that ultimately don’t lead you to achieve your enterprise’s goals. Bottom line, you want to make certain the transformation you’re about to embark upon will, in the end, support your overall business strategy.
Select Appropriate Cloud Services
The next phase of your cloud transformation will be to select the appropriate cloud services option which starts with the type of cloud model. Would a public, private or hybrid cloud approach work? Maybe you want to join what many other enterprises are doing and strive for a multi-cloud option.
Once you make these three key decisions, your organization can perform a comprehensive cost analysis, begin to formulate a migration plan and start to address change management and training logistics.
Cloud Transformation Strategy 105: Importance of Professional Cloud Services
To begin the journey to cloud migration, it is essential to identify the right partner that can offer you the professional cloud services you need. Look for a services partner that understands your industry and is able to help you execute a cloud strategy that aligns with your business goals.
Expertise in Migration and Implementation
Transitioning from legacy infrastructure to the cloud requires a strong level of expertise for migration and implementation. This includes:
- Cloud infrastructure expertise
- Experience in cloud networking
- Data engineering
- Cloud security knowledge
- Project management acumen
- And other technical skills
If your company does not have the technical expertise required, your best bet is to connect with a skilled partner who can bring your enterprise from start to finish in your transformation.
Security and Compliance Considerations
When making your selection and narrowing down options for cloud services, remember to keep risk management, cybersecurity and compliance in mind. You want to be certain the cloud services you select are appropriate and can adhere to any requirements you need to meet.
Ongoing Support and Optimization
Once established, you’ll need to address monitoring and optimization to ensure your cloud transformation strategy’s execution is successful. The partnership you build with an expert in cloud transformation strategy and services does not end at the completion of your project. A good partner provides ongoing support to ensure your goals are being met. This can be determined by testing and making comparisons to quantifiable measurements.
Cloud Transformation Strategy 106: Challenges and Solutions.
Like any other project, it is common to run into some hurdles when pursuing transition to the cloud. Challenges you may face include:
Lacking a Strategy
Cloud migration is a major business decision and one that shouldn’t be taken lightly. Each type of cloud structure has its own pros and cons. It’s essential to do the research and obtain all the information you can to make an educated decision.
Financial Hurdles
Cost challenges are a big problem for many companies. This can be overcome by putting an emphasis on planning to get an idea of the scope of the project. This way, a feasible roadmap can be created to get you to where you want to be. You can also do migration in increments, so each piece is more manageable.
Resistance to Change
Change is hard in an organization. Migrating to the cloud is no exception. You can overcome this by getting buy-in from leadership, keeping end-users in the loop, choosing user-friendly tools and applications and making an investment in training.
Cybersecurity and Compliance Risks
Data security and compliance are top considerations. If you cannot protect your data or meet regulatory compliance, you’ll have a costly problem. Consulting with a knowledgeable third-party cloud migration company can help you set your criteria and then choose an option that best secures your data.
Cloud services provide enterprises with a number of benefits once the transformation can be made. Companies that have made the changeover receive a stronger competitive advantage, business continuity, scalability, green initiatives (to help boost brand reputation) and cost-efficiency, to name a few. It is a tall order to fill, but once complete, your enterprise is modernized and can remain relevant for years to come due to the flexibility the cloud affords.
Ready to Start Your Journey to the Cloud?
Ready to begin your journey to develop a strategic plan to move your processes to the cloud? Contact Red River today to learn more about our services and how we can help your enterprise enjoy a seamless transition.
