A cloud-smart approach emphasizes leveraging the cloud strategically to maximize business value. Instead of a one-size-fits-all cloud adoption, it involves selecting the right cloud model (public, private, or hybrid) based on workload needs. This approach ensures organizations can take advantage of scalability, flexibility, and cost-efficiency while avoiding unnecessary expenses. It also incorporates security, compliance, and interoperability considerations to optimize performance and agility.
Outline :
• Over the past two years, there has been a surge in cloud commitment, with more than 86% of companies reporting an increase in cloud initiatives.
• Achieving full cloud value is at a tipping point for committed organizations, as heavy adopters are realizing expected outcomes at a higher rate.
• The cloud journey extends beyond mere migration; most companies view their cloud efforts as ongoing, tackling more complex and critical workloads.
• Despite progress, stubborn barriers remain, but five key practices can help companies overcome these challenges and achieve full value.
Upgrade to next level of business opportunity using cloud
The last two years have marked a period of accelerated transformation, with COVID-19 acting as a pivotal moment. As businesses faced intense pressure to adapt quickly, many turned to the cloud to stay competitive in an evolving landscape. Backed by a period of economic growth, companies invested heavily in cloud providers, signing significant deals and setting bold expectations for cloud’s role in driving growth, agility, and efficiency.
Today, businesses face a new turning point. The easy gains have been achieved, and they’re aiming higher. Organizations that underwent rapid transformation during the pandemic are now using that momentum to drive a new focus: Total Enterprise Reinvention.
This reinvention relies on a robust digital foundation, fueled by the cloud, to create a competitive edge. Fully realizing the cloud’s value demands continued dedication. Companies must now transition from merely “adopting the cloud” to “extracting value” and operating on the Cloud Continuum, unlocking the potential for further transformation and innovation.
Organizations need to shift their focus from merely “reaching the cloud” to “extracting value” and ultimately “operating within the Cloud Continuum” to unlock new levels of innovation.
The Cloud Continuum
Today, the cloud is no longer just a necessity for operating in a digital landscape—it has become the platform for breakthrough innovation and transformation. The cloud now represents a dynamic continuum of capabilities, spanning from public to edge, and everything in between. To fully realize the potential of the cloud, organizations must embrace continuous reinvention, underpinned by advanced Cloud Continuum strategies.
According to research, nearly 7 in 10 (68%) respondents said their journeys are still ongoing. About 32% of respondents feel their cloud journeys are complete and are confident in their ability to meet current business goals. Meanwhile, 41% recognize that their cloud journeys are evolving to keep up with changing business demands.
It may seem that those who consider their cloud journeys complete are performing better than those still evolving. However, we believe these companies are missing out on greater opportunities by declaring their journeys finished. As technology advances at a rapid pace, it continually redefines the boundaries of what’s possible. Notably, the “completed” group allocates a smaller portion of IT resources to innovation and reinvention compared to those still evolving—40% versus 44%.
Organizations focused on enterprise reinvention are constantly growing, adapting, and evolving as new opportunities and challenges emerge. In today’s dynamic market, standing still is a risk. By considering their cloud journeys complete, many companies are leaving untapped value behind and exposing themselves to future risks.
Become cloud smart
It’s time to shift from a cloud-first mindset, where businesses migrate every possible workload to the cloud, to a cloud-smart approach. Being cloud-smart involves first establishing key elements like governance and security, then strategically determining which workloads are best suited for public, private, or hybrid cloud environments.
This approach also capitalizes on advancements in cloud technology that enhance agility and reduce costs. These innovations include improvements in business applications and industry-specific cloud solutions, which provide tailored capabilities for specific sectors.
How to be cloud smart
These challenges faced relating to cloud can be mitigated by developing a comprehensive cloud strategy that not only supports business outcomes but also addresses both the application and infrastructure lifecycle.
Shifting to a cloud-smart approach enables organizations to take advantage of cloud technology developments that increase agility and decrease cost. By doing so, businesses will extract the value and the promise of cloud, ensuring their investments stand the test of time.
A cloud-smart strategy demands that IT leaders consider the broader impact and full advantages of cloud adoption across people, processes, technology, sourcing, and business operations. For example:
– Agility: Implementing DevOps and containerization at scale will likely require adjustments to the IT operating model, alongside agile development and deployment practices. These technologies enable rapid innovation, allowing businesses to develop and deploy new ideas quickly—transforming a concept from Monday morning into a working prototype by the end of the week.
– Service Management: When transitioning from owned data center assets to private or public cloud environments, the service management approach must also evolve. Instead of contacting internal IT operations teams for issues, businesses will now engage their cloud service provider, changing how major incidents are managed.
– Tooling and Instrumentation: With the shift to cloud, businesses move from managing physical assets like servers to overseeing virtualized services, requiring modern tooling. Tools like application performance management (APM) enable end-to-end visibility across IT workflows. As industry cloud adoption grows, these tools will become increasingly critical, supporting Gartner’s “whole product” approach to cloud.
How to maximize cloud value
The past two years were opportune for companies that invested heavily in cloud adoption. However, as we move from a period of economic growth to one of uncertainty, every expenditure—especially in the cloud—requires careful evaluation and justification.
Now, more than ever, businesses must “crack the code” to unlock cloud value by focusing on specific use cases. In the past, technology was a disruptive force; today, it serves as a critical enabler in uncertain times. Achieving true business agility, efficiency, and growth through the cloud demands not only strong commitment but also a strategy centered on continuous reinvention. To maximize cloud value and tap into future opportunities, companies should adopt five key practices:
1. Pursue Business and Industry Advantage: Leverage the cloud as a catalyst for change, prioritizing use cases based on time-to-value and aligning investments with evolving business strategies.
2. Design and Orchestrate in the Cloud Continuum: View the cloud as both an operational model and a strategic enabler, focusing on deploying the right mix of services across the Cloud Continuum.
3. Unleash New Value from Data and AI: Data excellence is becoming the foundation of industry competitiveness. Harnessing data and AI effectively will enable companies to thrive and grow sustainably.
4. Reimagine Your Operating Model and People: Cloud success isn’t just about technology—it requires transforming processes and empowering people to excel in the Cloud Continuum.
5. Master Cloud Economics: Organizations need to optimize cloud spending with full transparency and oversight, shifting the focus from cloud costs to cloud value for long-term success.
Conclusion
We’ve reached a new inflection point: migrating to the cloud is essential but no longer enough to fully unlock value or drive sustained reinvention. The real challenge and opportunity now lie in shaping a business reinvention agenda, focused on a broader definition of value. Cloud must be seen as an operating system that integrates data, AI, applications, infrastructure, and security to streamline operations and accelerate growth. The cloud journey is ongoing, where companies will continually develop new capabilities, acquire new skills, and—ideally—find satisfaction in uncovering new sources of value.