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

Cloud

December 23, 2022

To get started on the cloud transformation journey, let’s take note of the major stats of the cloud industry

  • Cloud adoption has single-handedly led to a $1 trillion value for Fortune 500 companies. With innovation and optimization leading the core rather than cost reductions, cloud transformation is here to stay.
  • In Q3 2022, global cloud infrastructure service spending climbed to $57 billion, bringing the industry total for the trailing twelve months to $217 billion.

With businesses treading fast on the cloud transformation journey, it is evident that cloud migration is no longer a far-fetched dream but a necessity. However, cloud transformation can be daunting, and the outcomes may only be desirable if a well-thought and seamless cloud strategy is followed.

What is Cloud Transformation?

The process of cloud transformation involves the entire process of transitioning business data, applications, infrastructure and other dependent hardware & software’s to the cloud. When an organization begins its cloud transformation journey, the context, iterations, and development of a cloud engine will vary over time.

While a single-service business will focus on developing a business domain adoption loop and building foundational capabilities, it would be 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, successful cloud transformation can take place. With richer external capabilities, companies need to evolve their adoption approach, strategy, and foundational capabilities.

Cloud transformation involves aligning business goals, having established metrics for monitoring and optimization, and tapping on data governance solutions to drive decision-making.

Cloud Transformation vs. Cloud Migration

Often used interchangeably, cloud transformation and cloud migration are different. The former involves a complete cycle of digital innovation from end-to-end modernization of organization’s legacy applications & infrastructure, optimization of the organization’s analytics and data, cloud security, cost optimization, etc. which overall suffices the digital transformation objectives. At the same time, 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. Enhanced Operational Efficiency

The ability to retrieve information in a single click is the new norm in the virtual world. Onsetting your cloud transformation journey, will boost data access, facilitate seamless collaboration in real-time, eliminate data silos, and improvise analytical abilities across organizations. Moreover, IT personnel can solely focus on innovations rather than routine infrastructure maintenance.

2. Data Security

Not keeping data on-premise is a big hassle for many organizations. The possibility of data theft, phishing, and malware is a concern when cloud migration is considered. However, 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 makes it difficult to gain unauthorized access. Besides, cloud hosting offers multiple data backup options that can significantly reduce downtime in case of system failure.

3. Improved Cost Management

Organizational data management costs can soar high 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 and scope for catalyzing organizational initiatives.

4. Simplified Scaling

To keep up with the competition, businesses need enhanced scaling capabilities to accommodate priorities and keep up with the evolving marketplace. Cloud services act as a key differentiator as on-premise systems face a host of delays that can stretch up to weeks and months.

5. Accelerate Prototyping

Enabling cloud transformation will need organizations to pivot their business processes several times. Cloud platforms let users develop, test, and deploy their applications on different channels and mediums during the transformation phase without the need to set up complex infrastructure. Thus, choosing cloud transformation services will require organizations to think about the right computing resources, infrastructure, and platforms. Most importantly, they should save it from investing in multiple IT resources. Businesses thus need to test the tools that fit right with their applications and then shift to cloud environments.

6. Smoother Collaboration

Cloud transformation lets businesses collaborate with multiple teams and work simultaneously across various time zones. This has become a stepping stone for organizational success as it boosts productivity. Moreover, when teams can access, retrieve, and process information anytime, businesses gain a competitive edge and can easily align employee goals with that of the organization.

Developing a Cloud Transformation Strategy

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

1. Conduct a Competitor Analysis

Understanding your competitors will help you develop a better perspective on how an organization stands in regard to strengths and gaps. This will further help you determine where and how you need to invest your time and resources for maximum results.

2. Align Goals and Strategies

Having aligned business processes is a must, as the majority of organizations are transitioning to business models that are cloud-dependent. Organizations need to determine their goals, systems, and processes. Post that, documentation of objectives, setting priorities, and a cloud transformation roadmap needs to guide the same.

3. Selecting the Right Cloud Hosting Platform

A cloud provider can make or break a business’s cloud transformation journey. With multiple high-quality options available in the market, it is imperative to find the right business fit and evaluate all options to fit organizational goals. Analyzing and executing strategically valuable strategies is what can bring longevity and stability. Besides, administrative support, technology compatibility, upgrades, and ease of deployment will act as other important parameters.

4. Address Monitoring and Optimization

A Cloud transformation journey cannot be considered successful after the initial migration. Monitoring and optimization of cloud usage can help organizations leverage additional efficiencies. Focusing on metrics that can impact the bottom line and enhance user experience can create a difference. As an added benefit, consistent evaluation of system performance will prevent defects and issues from getting worse.

5. Leverage a Data Governance Solution

Analyzing current data governance policies and processes will be required before businesses move to the cloud. A robust data governance policy should lay out the methods, processes, responsibilities, and how the corporate data be stored.

Considering solutions that can evolve with businesses and have continuous improvement at their core will facilitate automation and boost efficiency. In this manner, organizations can seamlessly transition their data from on-premises to the cloud.

Organizations willing to start a governance program must leverage tools to plan, manage, and operationalize data governance and offload IT personnel.

6. 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 help businesses identify and mitigate common risks associated with cloud migration. Thus, users can prepare for issues and respond better to challenging environments.

Finding the Perfect Solution

Cloud transformation is one of the most critical endeavors organizations will undertake. New growth opportunities will be unlocked with cloud services, and you will be able to scale more efficiently to match customer demand. However, every technological upgrade comes with security threats and new opportunities. Security analytics, vulnerability scanning, and log collection will help you protect your systems from threats and also improve your security and compliance.

Legacy applications are known to hinder visibility, and migration to the cloud will expedite cloud transformation and foster digital evolution in enterprises. The inherent need to transform the backbone will impact timelines of cloud transformation, and breaking through these barriers will unleash the true power of digital transformation. Hexaware is one such cloud transformation service provider that addresses all roadblocks, delivers on quality and speed, and reduces the total cost of ownership.

Hexaware’s cloud transformation arm 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 set businesses on the path of cost optimization and agility. Thus, they can unlock the unlimited potential and expedite their cloud transformation journey in the most cost-effective manner.

With amaze®, organizations can analyze applications in record- time, leverage automation, and execute operations on all target architectures. Some of the features organizations cannot afford to miss include:

  • Seamless capabilities to analyze applications in days
  • Get access to recommendations down to the code level
  • Robust service catalogs of granular migration and modernization patterns
  • Use automation tools designed to handle the toughest of enterprise workloads
  • Absorb insights and implement seamlessly with exhaustive templates, cookbooks, and a handbook of best practices to ensure compliance, security, and robust architecture
  • Leverage the power of economic toolkits to build the best cloud transformation strategy

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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