Manage the move to cloud – don’t jump

As the chief tech exec of your company, you are faced with a nervous CEO/CFO/COO who wants to cut costs amidst economic uncertainties. Understanding the potential benefits of a move to cloud technology in reducing total cost of ownership, they have tasked you with exploring the expedited migration of certain application assets to the cloud. How will you proceed?

We talked in past posts about technology strategy. If you have one in place, this can help you convince the leadership that jumping too fast to a new platform can be detrimental to the organization.

You have not retooled your processes or retrained your staff, and you certainly don’t know the impact on the business by moving too quickly. What about contact center support?

In our technology strategy we have the following step:

7. Envision Target State and Assess Gaps: The IT mandate and analysis of the current environment should allow for definition of strategic goals and a conceptualization of the future state.  To achieve this goal, follow an Enterprise Architecture modeling approach that allows for depiction of a potential future state.

By clearly defining what the target environment should look like – to support the business goals – you will have an idea for the training needs of the organization. You should also begin to understand the costs of such a move, and the impacts on how the business operates today.

Manage expectations

Operating without a well-thought-out strategy exposes technology leaders to inherent vulnerabilities.

You will not only have a difficult time maintaining the target platform because you won’t have the correct skills, but you’ll also need to support the current platform because you’ll need overlap… assuming you can even move everything. Don’t underestimate the cost to train your people and support your technology environments.

If you are re-platforming (just moving) applications from on-site to the cloud, you’ll find that they may not perform as well and need retrofitting, which is costly. This could also leave you with technical debt, such as back versions of software, and systems components that could be eliminated before a cloud move.

In general, transitioning your cloud (or any platform) may result in increased expenses for the company and potential job loss. Ultimately, it is crucial to leverage your strategy when considering technology shifts to ensure comprehensive planning and mitigate risks effectively.

Click here for a post on what the cloud is and why it’s important.

Importance of Understanding the Cloud?

To thrive as a successful tech executive, or any executive for that matter, it’s crucial to understand the technology that shapes your company’s business. This knowledge equips you to make informed decisions and effectively guide your organization towards sustainable growth and success. As the digital landscape evolves, keeping abreast of technological advancements is not just an option but a necessity for leaders aiming to maintain a competitive edge. So, what’s the cloud I keep hearing so much about?

A simple search for “cloud” on Google not only brings up information about puffy stuff in the sky but also unveils the fascinating realm of technology, which have revolutionized how businesses operate. Leading the charge in this domain are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). These platforms offer robust, scalable solutions to cater to diverse business needs. While there are numerous other players in the market, let’s focus on these prominent three for now, as they set the benchmark for cloud services.

Firstly, let’s clarify what it means.

Essentially, it’s a collection of interconnected technologies—servers, data storage, networking, and more—managed by a provider. Leveraging the cloud allows you to deploy software applications without fretting over the underlying infrastructure, enabling businesses to focus more on innovation and less on technical maintenance. Consider it a distributed data center accessible online, with options for direct connections to ensure seamless data flow and robust security.

  • You don’t need to own or manage the hardware, thereby reducing capital expenditure and alleviating the burden of hardware maintenance and upgrades.

  • You don’t need to oversee operating systems or virtual environments, as this is managed by the cloud provider, allowing your IT team to focus on more strategic initiatives.

  • You don’t need to worry about scalability, since cloud platforms offer flexible solutions that can easily adapt to your business’s growing needs without significant downtime or disruptions.

  • You can deploy and make your app global instantly, reaching a worldwide audience faster than ever before, which is especially beneficial for companies aiming to enter new markets.

  • You can centralize your operations with one provider, simplifying management and operations (though many opt for a hybrid cloud approach with multiple providers to maximize resilience and flexibility).

  • You can reclassify capital expenses as operational costs, improving cash flow management and financial planning.

The advantages are clear: by avoiding a data center and a large system management team, a company can significantly reduce costs.

However, poor planning can lead to unnecessary expenses, like paying for excess services and capacity that aren’t utilized effectively. Thoughtful planning and strategizing for cloud migration are essential to optimize utilization and cost-efficiency, ensuring that your business reaps the full benefits of cloud technology.

In summary, cloud is a transformative technology that provides numerous opportunities for businesses to grow and innovate. While cloud technology offers significant advantages, it’s crucial to understand its complexities and plan accordingly. This will ultimately lead to a successful migration and efficient utilization of resources, cementing your role as a knowledgeable and effective tech executive. By embracing the cloud, you position your organization to leverage cutting-edge technology, drive innovation, and achieve sustainable success in an increasingly competitive market.

Click here for a post on keeping the data center or moving to cloud.

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