In the dynamic global economy, businesses are striving for enhanced flexibility, efficiency, and innovation. Cloud initiatives have risen to the top of their agenda, with many recognizing that a “cloud first” approach is instrumental in driving digital transformation. Cloud adoption has skyrocketed, with over 90% of enterprises having some degree of cloud integration. We predict that more than 80% of future industry leaders will leverage cloud infrastructure.
However, the COVID-19 pandemic has underscored the need for businesses to expedite their cloud migration to facilitate comprehensive digital transformation. Cloud migration has moved from an option to a necessity. Yet, this imperative does not make the implementation any less complex. It is vital to recognize that challenges on the cloud-first journey are common. The path to the cloud’s transformative benefits is multifaceted, involving strategy adjustment, technology evolution, skills development, business process modification, and organizational design considerations.
In this blog, we take a deep dive into the top 3 challenges to maximize the ROI on cloud investments:
- Legacy infrastructure
- Security Compliance
- Misalignment between the IT and the Business
With companies moving more workloads to the cloud, two-thirds of companies are failing to capture the full value expected from their initiatives
Source: Accenture “Navigating the barriers to maximizing cloud value” report
Legacy infrastructure
According to research, legacy infrastructure is among the top three barriers preventing a third of companies from realizing the expected value of cloud technology. The need to modernize legacy applications is also a major obstacle and is strongly linked to the legacy infrastructure barrier. This is because attempting to modernize applications on outdated infrastructure can impede success. For instance, moving data and applications to the cloud to improve customer experiences may fail if the network is unable to handle increased bandwidth requirements.
Many companies are still constrained by their legacy technology debt, as well as legacy talent debt. This means they lack the necessary cloud infrastructure skills to modernize and transform their IT landscape at the required pace. However, addressing these challenges is difficult for IT organizations, which are currently stretched for resources. Maintaining legacy technology consumes most of their effort and resources, leaving little capacity to address the growing debt incurred by legacy technology and talent.
Security Compliance
According to Logic Monitor Cloud Vision 2020: The Future of the Cloud research, 66% of IT professionals perceive security as a significant impediment to cloud adoption. However, the prevalent belief that cloud environments reduce security is the more considerable hurdle. In fact, public cloud service providers often invest more in security than any individual company or government agency. Transitioning to the cloud does not compromise security; it can enhance it. For example, Microsoft invests $1 billion annually in cybersecurity for their Azure cloud platform, successfully neutralizing 7 trillion cyber threats daily. AWS and Google make similar investments to safeguard personal and corporate data.
Addressing security concerns in cloud adoption requires a cultural shift, not a new security infrastructure. Companies and government agencies must familiarize themselves with cloud technologies. Starting small, migrating a few workloads to the cloud, and assessing the outcomes can aid in this process. Third-party assurance reports can also provide reassurance about a cloud service provider’s data handling. As confidence builds, more workloads can be transferred, progressing from a hybrid to a full public cloud model. Many governments opt to retain sensitive defence data in their private data centers while transitioning other services to the public cloud.
Misalignment between the IT and the Business
The alignment of business and IT is a critical factor that determines the success of digitalization of processes and enterprise-wide cloud adoption. When the business goals and IT objectives are not aligned, it can lead to inefficiencies, miscommunication, and unnecessary barriers to innovation. A lack of alignment can also result in the inability to ensure stability and integrity in the core business.
In order to overcome these challenges, it is important for both teams to work together and have a shared understanding of their goals and objectives. The business team needs to understand the capabilities and limitations of IT, while the IT team needs to understand the business context and priorities. This alignment can enable them to work collaboratively and implement new technologies more effectively.
Moreover, as companies move towards cloud adoption, it becomes increasingly important for IT and business teams to work together to ensure the successful migration of applications and data to the cloud. This requires a deep understanding of the business processes and the technical requirements of the cloud environment. IT teams must ensure that the cloud infrastructure is secure, scalable, and reliable, while business teams need to ensure that the cloud adoption aligns with their strategic goals and objectives.
Overall, the alignment of business and IT is crucial for digital transformation and enterprise-wide cloud adoption. By working together, businesses can ensure the stability and integrity of their core business, and effectively implement new technologies to drive innovation and growth. Cloud
In conclusion, cloud adoption can be complex. The right strategies and understanding common barriers are crucial. Organizations can maximize their cloud investments and fuel digital transformation by doing so.. At Altivate, we specialize in helping businesses navigate the cloud journey with clarity and confidence. Our team of experts can provide you with personalized insights and proven strategies to overcome these challenges and ensure a smooth transition to the cloud.
Contact us today to schedule a consultation. We are ready to help you transform your organization through the power of the cloud.
