As the digital landscape evolves, organizations need efficient, flexible, and scalable solutions to streamline enterprise operations. Against this backdrop, cloud computing has transformed how organizations operate by allowing access to a broad spectrum of on-demand IT resources without requiring on-premises infrastructure.
The Varied Manifestations of Cloud Computing
Cloud computing constitutes the delivery of computing services via the Internet, which includes servers, databases, storage, software, and networking. These cloud offerings allow firms to lower costs substantially, boost response agility and scale operations up or down as necessary.
While the value of cloud services is enormous, as an economic paradigm it requires thoughtful consideration. Therefore, when leaders steer their organisation’s transition to Cloud, it’s imperative to ensure a well-defined cloud strategy to so avoid obstacles and capitalize on the benefits of clouded. In adopting cloud computing, multiple elements should be considered, including one’s needs, the budget and the benefits expected.
The first thing leaders should know is that several cloud strategies exist and they must choose what is well aligned with their business needs and the requirement for scale. The four prime cloud strategies are single public cloud, private cloud, hybrid cloud and multi-public.[1]
Public cloud refers to a cloud strategy with services offered only by a cloud provider. Consequently, computing, storage and software will be provided on a ‘pay-as-you-go’ basis. This approach is feasible for firms wanting to retain traditional software and infrastructure while they focus on key business functions. It is the most cost-effective solution since businesses don’t need to invest in expensive hardware and infrastructure.
Private cloud denotes a strategy highlighting that all applications and data hosted on Cloud belong to this enterprise only. The tech stack that is compatible with the company’s action plan is available via an on-premises cloud provider’s data centre. Such a strategy is good for entities worried about data security and reluctant to risk moving their data.
A hybrid cloud approach blends the features of public and private clouds, enabling the possibility of retaining some applications on-site while others are moved to the public cloud.
In the case of multi-public, firms employ a multiple-public strategy using the same kind (public or private) of more than one service model from more than one cloud service provider. The three cloud computing models are IaaS (infrastructure as a service), PaaS (platform as a service) and SaaS (software as a service).[2] One of the most popular strategies, multi-public provides a seamless cloud experience.
Long-term Gains and the Economics of Cloud
In choosing cloud, it’s critical to consider long-term gains rather than short-term benefits. Often, firms merely migrate current applications with minimal redesign or none at all. Through this approach, most of the operational and technical inefficiencies of the traditional applications are retained. As a result, companies cannot capitalise on the dynamic infrastructure of Cloud.
Whatever short-term benefits are reaped in this way are minuscule unlike those gained in a year or more, which includes time to market, innovation and access to advanced capabilities. Investing extra time in app remediation, automation and foundation development can ensure an increase over short-term gains by 15% to 25%.
It is also important to segregate the economics and architecture of cloud computing. Typically, firms overestimate their utilisation of cloud, which means excess expenditure as most organisations have lower rates of usage than anticipated. Although a few companies with advanced cloud architectures log utilisation levels of more than 60%, most fall below 30% and, sometimes, even under 10%.
Generally, low usage occurs because the cloud economics and architecture of the business are both developed independently, leading to utilisation rates that cannot be supported by the underlying infrastructure. To prevent this problem, organisations should create a close relationship between their cloud business needs and the architecture’s transformation.
Another important element is defining and prioritising the workloads for migration to cloud. Note that every workload does not require to be moved to cloud. Workloads like storage services on custom-designed on-premises infrastructure would be more valuable when left on-site. Firms with a few majorly scaled workloads should be more careful about deciding what to migrate to cloud.
Countering Risks and Driving Robust Implementation
Leaders should understand the risks associated with cloud, primarily security and data privacy risks. The safety and security of any information stored in cloud are contingent on various factors such as encryption systems and password protection. Many organisations are compromised because of subpar security in applications, storage systems and databases. Accordingly, it’s vital to manage security threats before integrating one’s applications into cloud.
When it comes to data privacy risks, as these laws differ between nations, leaders must be aware of how data will be treated in diverse jurisdictions when stored in Cloud. This includes whether law enforcement agencies could access PII (personally identifiable information) under certain circumstances without the consent or knowledge of a company.
Finally, implementation is the most crucial stage of any cloud strategy. There should be a detailed implementation plan that includes the creation of a clear roadmap together with timelines and milestones for every step of the migration journey.
Also, remember that each new service selected would need ongoing support. If leaders have a well-defined plan, their IT teams could customise the new set of tools while leveraging the knowledge and support of vendors without raising their team’s workloads.
Given the fast-moving dynamics of the digital age, leaders must rely on a structured process in aligning their business strategies with technological innovations. A predetermined cloud strategy is critical to the success of g new-age enterprises.
[1] https://medium.com/geekculture/a-step-by-step-guide-to-an-effective-cloud-strategy-6e10f5251692
[2] https://cloud.google.com/learn/paas-vs-iaas-vs-saas#:~:text=started%20for%20free-,What%20are%20IaaS%2C%20PaaS%2C%20SaaS%2C%20and%20CaaS%3F,(software%20as%20a%20service)
By Ritsuko Hidaka, Head of JDU – Fujitsu
Ritsuko Hidaka is a part of Fujitsu Global Delivery organization. In her current role, she is the Head of JGG Delivery Unit (JDU). JDU spans across 4 countries, namely India, Philippines, Malaysia, and China, with approximately 7,700 members and growing rapidly. The organization was setup to support Fujitsu’s business in Japan and will strengthen Fujitsu’s position as Japan’s largest IT company.
