IDC expects that cloud spending will account for over $1 trillion by 2024. Additionally, 41.4% of cloud adopters are planning to increase their use of cloud-based products and services, while 33.4% are migrating from legacy software to cloud-based tools.
But the flip side is also worth considering. In his October 2022 blog titled, "Why we're leaving the cloud," David Hansson of HEY and Basecamp highlighted the various reasons why his organization decided to move out of the cloud platform. Among the primary reasons, David outlined that they were "paying over half a million dollars per year for database (RDS) and search (ES) services from Amazon." He also talked about having a "business model that's compatible with owning hardware."
So, should organizations blindly adopt a "cloud-first strategy" without considering long-term objectives? The answer is a resounding "No."
Here are 7 things that organizations must consider before moving to the cloud platform:
1. Cloud Migration Goals
First and foremost, organizations must consider "why" they want to move to the cloud. To answer this question, technology leaders must have complete business visibility to determine which area would benefit the most from the cloud.
According to Deloitte, here are some of the top factors driving cloud migration:
- Data security and protection (37%)
- Data modernization (22%)
- IT operational costs and performance (15%)
For instance, organizations must weigh in on whether the cloud can facilitate their infrastructure expansion, improve system uptime, and accelerate their business growth. Organizations should look at the cloud as a means to improve their business agility.
2. Cloud Costs
A BCG report found that organizations can save between 15% and 40% on their infrastructure costs by migrating to the cloud. However, most cloud adopters fail to accurately estimate the "actual" costs of cloud migration. Here are some critical questions that enterprise leaders must answer when preparing to move to the cloud:
- What are the costs of preparing on-premises workloads & applications for the cloud?
- What are the refactoring costs of preparing bespoke workloads (across various IT networks and architectures) to operate on any cloud service?
- What are the costs of cloud hosting plans from popular cloud service providers – based on data storage?
3. Data Security
A study found that nearly 80% of enterprises suffered a major cloud breach between 2019 and 2020. Another 43% witnessed 10 (or more) breaches in the same duration. These risks must be even more profound now as cloud adoption accelerates. Hence, an important factor is "how safe is organizational data on the cloud?"
Cloud adopters must prioritize data security as the leading concern when designing their cloud strategy and choosing the right service provider.
Besides cloud security, organizations must factor in regulatory compliance before beginning their cloud migration process. This includes cloud policies that enable the safe sharing and protection of data on the cloud.
4. Cloud Scalability
With its "pay as you go" model, the cloud platform offers the biggest benefit for growing companies to scale up (or down) their data volumes and workloads. However, cloud scalability has its share of limitations. Hence, organizations must consider the scalability-related "ceilings" like maximum data storage, cloud users, and workloads when choosing the right cloud hosting plan.
According to a survey, 69% of respondents reported overspending their cloud budget by over 25%. Another "infamous" case study is that of a company spending $500,000 on a single MS Azure task. Lack of automatic scaling and poor long-term capacity planning are among the primary reasons for cloud overspending.
5. Deployment Model
Another factor for organizations to consider is which cloud deployment model is best suited for their business needs. Companies can invest in different deployment models, including the:
A 2020 global survey found that 49% of respondents plan to adopt the hybrid cloud model in 3 to 5 years. For improved cloud management and control, organizations need to choose between additional models, including:
- Infrastructure-as-a-service (IaaS) for flexibility in the cloud infrastructure
- Platform-as-a-service (PaaS) for speed in delivering applications to the market
- Software-as-a-service (SaaS) to automate and accelerate the app deployment process
6. Work Culture
Cloud migration is not simply a business or technology-driven decision. It represents a major paradigm shift in the organization's work culture. For instance, cloud adoption can influence employee productivity in any organization. The 2022 Cisco Global Hybrid Work Study found that 78% of employees believe that cloud-enabled remote or hybrid working has improved their well-being – resulting in higher productivity.
Besides learning cloud computing skills, organizations go through a transformation in their working culture. Business stakeholders need time and resources to understand the factors driving this transformation.
7. Cloud Migration Expert
For a smooth cloud migration, organizations must select the right partner with adequate industry experience in migrating to the cloud. Here are some of the main parameters that can help you choose the right partner:
- Technical expertise
- Experience in the industry
- Overall business reputation
- Customer satisfaction levels
Besides these broad qualifications, you need to zone into their specific capabilities, like the experience level of their cloud engineering team and how they can ensure data security. As an example, they must have a clear disaster recovery plan whenever your cloud environment experiences any downtime.
For a smooth transition, companies must consider each of these 7 factors when migrating to the cloud platform. With the right service provider, cloud adopters can streamline and simplify this migration process.
So, are you looking for the right cloud partner to help you migrate? Contact us today!