
The writing is on the wall: Before long, companies will cease to run any IT infrastructure on-premises and instead access computing resources exclusively on the cloud. Before that happens, however, many businesses may need to rethink their cloud approach, especially when it comes to rationalizing and optimizing cloud costs.
This is because—in their haste to meet fast-turn digital transformation mandates and timelines—many CIOs turned to wholesale migrations to public cloud. Without a concrete digital strategy and roadmap, they tried to push every possible workload and application to the hyperscalers. Departmental heads were emboldened to do their own cloud migrations.
But here’s the problem: As cloud costs began to pile up, the ROI picture became unclear. Many technology leaders found their data was essentially locked in at one cloud provider, limiting agility. Security and data governance were often afterthoughts.
Becoming cloud-smart
That’s why it’s time to move from a cloud-first approach, when businesses ported every possible workload to the cloud, to what we’d call “cloud-smart.” Cloud-smart means doing the foundational work of putting in place such critical elements as governance and security first, and then identifying the workloads that should move to public, private or hybrid cloud.
It also means taking advantage of cloud technology developments that increase agility and decrease cost. These include business application improvements and industry cloud options that present complete business capabilities for specific industry verticals.
Doing so means getting past what Gartner vice president Sid Nag calls the “irrational exuberance” phase of cloud migration and moving to a more thoughtful strategy that will drive specific industry, business and technology outcomes with cloud.
Beyond ‘lift and shift’
To be clear, the cloud-first approach can be valid, such as when there is a compelling case for shutting down a data center, or moving off IT equipment that has reached the end of its lifecycle. In these cases, there are clear bottom-line benefits to an immediate move to public cloud, as it shifts the organization away from capital expenditure and the need to maintain IT assets.
However, cloud migrations grow murkier when it comes to moving workloads that have long run on a legacy architecture. Case in point: business applications with a low tolerance for latency or specific data sovereignty requirements governing where data can be stored from an architectural, legal or compliance perspective. This situation calls for a strategy that accounts for these complexities.
In our work with clients, we often see organizations struggling with cloud costs well in excess of what they expected. We’re doing a lot of work in “cloud economics,” helping senior leaders understand why their cloud costs have gotten out of control.
Beyond cost concerns, we’ve also seen workloads being moved back to an on-premises infrastructure, often due to unforeseen application latency issues or concerns over data sovereignty and where business data is being stored.
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