Businesses today are at the coming point when cloud spending will soon overtake non-cloud spending. In my discussions with customers, I can see a shift in the narrative. They are not asking how to migrate to the cloud, but how to get the most out of the cloud by creating different experiences and products and simplifying the way things are done. Enterprises that are digital native have the benefit of changing the DNA of outdated industry standards and processes. In addition, the cloud is no longer a unique technology. It is a dynamic continuum of possibilities, from the public to the on-prem. Our recent research calls it Cloud Continuum, as innovations previously exclusive to the public cloud can now be found in multiple locations and destinations, creating a chain of ongoing capabilities to meet evolving business needs.
While every organization has a different strategy, we see the top five methods that are really changing and maximizing the value of Cloud Continuum.
Business Use Cases – First and foremost, organizations need to focus on industry-specific opportunities, services, and partnerships and examine how the cloud is changing that . Whether it is the creation of personalized services with an omnichannel or more predictable and secure supply chain, high value use cases exist and should be at the heart of any cloud program. This shifts the strategy from digitization and SaaS to more strategic intellectual property, vertical solutions and ecosystem partnerships.
The Value of Data – Organizations that incorporate cloud and applied intelligence initiatives to harness the value of data are increasingly common. They scale advanced analytics and use AI and ML capabilities and market data to differentiate experiences and solutions beyond the competition. For example, a fast food restaurant doubled its market capitalization in two years thanks to its transition to the cloud, enabling self-service kiosks and enabling new customer channels and programs.
People and the way they work – Organizations that prioritize people and culture as part of their cloud transition will be worth 60% more. Our research shows better outcomes at all levels, including customer experience, worker productivity, and organizational agility and innovation. The key to success is a focus on alignment, competence, and adoption. First, they align C Suite, both business and IT, creating a synergistic understanding of the value of implementing new solutions from the continuum. They invest in their people to advance cloud skills and digital literacy across the organization and create structures that enable products instead of disrupted functions. Ultimately, they’re adopting new operating models to operate faster, eliminate limited bugs, and continually evolve and experiment with data and technology.
Power of Choice – As Cloud Continuum offers many opportunities, organizations can select and assemble the optimal set of services from multiple locations to solve their business cshallenges on their own. To do this, organizations are moving from clouded-out architectures to forward-looking platform strategies that enable intelligent decision-making across multiple clouds and new sites (such as such as IoT, Edge, and Mobile).
Harnessing the cloud economy – finally, organizations are fundamentally changing the way they strategically invest and manage technology operations enabled by cloud-based spending models. They take a more product-focused approach to total cost of ownership, and use flexible funding approaches to break the monolith of traditional technology funding cycles. While Cloud Continuum has the potential to generate significant business benefits, no matter where the organization is in the continuum, better ROI and continuous improvemens are possible.