What is Cloud Transformation: Its Purpose, Benefits, and Strategy

Cloud

December 23, 2022

Cloud computing continues to revolutionize business operations, offering solutions that enable scalability, efficiency, and innovation. By leveraging cloud transformation services, businesses can access computing power, storage, databases, AI-powered tools, and advanced analytics easily over the Internet. With 94% of companies worldwide already adopting cloud technologies and an increasing number embracing a cloud transformation strategy, the cloud has become a cornerstone for organizations aiming to remain competitive in an ever-evolving digital world. Despite its advantages, cloud transformation can be daunting making it necessary to develop and follow a well-thought-out strategy. 

What is Cloud Transformation? 

Cloud transformation involves the entire process of transitioning business data, applications, infrastructure and other dependent hardware and software off premises. It also involves aligning business goals, having established metrics for monitoring and optimization, and tapping into data governance solutions to drive decision-making.  

When an organization begins its cloud transformation journey, the context, iterations, and development of a cloud engine will likely change over time. While a single-service business will focus on developing a business domain adoption loop and building foundational capabilities, for example, it is different for large institutions. In this case, the foundational services will serve as the basis for building workloads in the cloud environment. Only when these work in tandem, can successful cloud transformation take place. With richer external capabilities, companies need to evolve their adoption approach, strategy, and foundational capabilities. 

Cloud Transformation vs. Cloud Migration 

Often used interchangeably, cloud transformation and cloud migration are actually different. The former involves a complete cycle of digital innovation from end-to-end modernization of organization’s legacy applications and infrastructure, and optimization of the organization’s analytics and data, cloud security, and cost optimization. The latter involves moving a company’s digital assets, services, databases, and applications either partially or wholly into the cloud. 

Benefits of Cloud Transformation 

Cloud transformation is not limited to cost-savings, but it holds a host of opportunities for businesses. 

  1. Operational Efficiency
    The ability to retrieve information in a single click is the norm in the virtual world. Setting out on your cloud transformation journey will boost data access, facilitate seamless collaboration in real-time, eliminate data silos, and improve analytical abilities across organizations. Moreover, IT personnel can solely focus on innovations rather than routine infrastructure maintenance. 
  1. Data Security
    Not keeping data on-premises is a concern for some organizations that worry about the possibility of data theft, phishing, and malware. What they may not understand, however, is that on-premises data is far more prone to attacks than that stored on the cloud. The latter is secured via encryption and additional layers of security that make it difficult to gain unauthorized access. Besides, cloud hosting offers multiple data backup options that can significantly reduce downtime in case of system failure. 
  1. Improved Cost Management
    Organizational data management costs can soar if the right resources are not used. With cloud transformation services, businesses can eliminate capital expenditures associated with physical infrastructure and pay only for the desired usage and scale as needed. Maintenance and labor demands are also reduced, and that creates room for catalyzing other organizational initiatives. 
  1. Simplified Scaling
    To keep up with the competitive marketplace, businesses need responsive and flexible scaling capabilities. On-premises systems face a host of barriers that can stretch quick changes into tasks that take up to weeks and months. 
  1. Accelerate Prototyping
    Cloud platforms empower users to develop, test, and deploy applications across different channels and mediums during the transformation phase, eliminating the need for complex infrastructure.  The process of preparing for this new capability, cloud transformation services necessitate careful consideration of the right computing resources, infrastructure, and platforms. Approaching this process thoughtfully should help organizations avoid unnecessary investments in multiple IT resources. Businesses thus need to test the tools that fit right with their applications and then shift to cloud environments. 
  1. Smoother Collaboration
    Cloud transformation lets businesses collaborate with multiple teams and work simultaneously across various time zones. This has become a steppingstone for organizational success as it boosts productivity. Moreover, when teams can access, retrieve, and process information anytime, businesses can more easily align employee goals with that of the organization. 

Developing a Cloud Transformation Strategy 

Cloud transformation can seem overwhelming, but the potential challenges can be reduced with planning and strategic implementation. The best practices to ensure a successful transformation include: 

  1. Conduct a Competitor Analysis
    Understanding your competitors can help you better understand gaps in the market. This analysis can serve as a guide when determining where and how you need to invest your time and resources for maximum results. 
  1. Align Goals and Strategies
    Having aligned business processes is a must. Organizations need to clearly document objectives, set priorities, and create a cloud transformation roadmap. 
  1. Selecting the Right Cloud Hosting Platform
    A cloud provider can make or break a business’s cloud transformation journey, making it imperative to find the right business fit with organizational goals. Administrative support, technology compatibility, and ease of upgrades and deployment are all important parameters. 
  1. Address Monitoring and Optimization
    A cloud transformation journey cannot be considered successful immediately after the initial migration. Monitoring and optimization of cloud usage, focusing on financial and user experience metrics will enable ongoing optimization and draw attention to issues before they impact business performance. 
  1. Leverage a Data Governance Solution
    Analyzing current data governance policies and processes is necessary before moving to the cloud. A robust data governance policy should be established that lays out the methods, processes, responsibilities, and how the corporate data will be stored. Considering solutions that can evolve with businesses and have continuous improvement at their core are also important to facilitate automation and boost efficiency.  
  1. Consider Cloud Security and Compliance
    The success of a cloud transformation depends on the security of the cloud. Thus, cloud security should be the top priority of businesses when laying out a roadmap. Impact analysis is the first step toward uncovering an organization’s security gaps and understanding future goals. 

Cloud data catalogs can also help businesses identify and mitigate common risks associated with cloud migration, enabling them to better respond to challenging environments. 

Finding the Perfect Solution 

Cloud transformation is one of the most critical endeavors an organization will undertake, enabling new opportunities to grow and respond to customer demand. However, every technological upgrade comes with security threats and new opportunities, making it imperative to find the right partner for your journey.  

Hexaware is a cloud transformation service provider that addresses all roadblocks, delivers quality and speed, and reduces the total cost of ownership. 

Hexaware’s cloud transformation experts can seamlessly drive large-scale enterprise cloud transformation by extending the digital footprint of enterprises, bringing data, infrastructure, and applications under a single umbrella. Reimagining customer experiences and delivering top-notch transformative cloud solutions sets businesses on the path of cost optimization and agility. Thus, they can unlock unlimited potential and expedite their cloud transformation journey in the most cost-effective manner. 

With Amaze®, organizations can efficiently analyze applications, leverage automation, and execute operations across all target architectures. Key features include: 

  • Seamless capabilities for rapid application analysis 
  • Access to detailed code-level recommendations 
  • Comprehensive service catalogs of granular migration and modernization patterns 
  • Advanced automation tools designed for enterprise workloads 
  • Implementation support with extensive templates, cookbooks, and best practice handbooks to ensure compliance, security, and robust architecture 
  • Economic toolkits to optimize your cloud transformation strategy 

Embracing cloud transformation is not just about adopting new technologies; it’s about unlocking the potential for agility, scalability, and innovation. By leveraging the right cloud services, businesses can future-proof their operations, stay ahead in competitive markets, and drive sustainable growth in an ever-evolving digital landscape.

About the Author

Karmega Chandran

Karmega Chandran

Karmega Chandran works with Hexaware’s amaze® R&D Engineering function as a team leader. He is responsible for product marketing activities, like creation of go-to-market assets, and demonstrates multi-tasking in managing various marketing deliverables. He is actively involved with SMEs to plan & execute contents for communicating Hexaware’s amaze® product suite services to the external world for better brand recognition.

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FAQs

Cloud transformation is the process of transitioning an organization’s data, applications, and infrastructure to the cloud while aligning business goals and leveraging cloud transformation services to drive innovation, scalability, and efficiency.

While cloud migration focuses on moving digital assets to the cloud, enterprise cloud transformation encompasses a broader scope, including modernization, optimization, and the implementation of a comprehensive cloud transformation strategy to meet long-term business objectives.

The benefits of cloud transformation include enhanced operational efficiency, improved data security, simplified scaling, and access to cloud transformation services that enable smoother collaboration and cost optimization across organizations.

A robust cloud transformation strategy ensures that businesses can adopt cloud transformation best practices, align their goals with cloud capabilities, and leverage the full potential of enterprise cloud transformation for sustained growth and innovation.

Challenges in cloud transformation include addressing security concerns, ensuring compliance, integrating legacy systems, and following cloud transformation best practices to optimize cloud usage and achieve seamless adoption.

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