More and more enterprises and governments are taking a “cloud-first” approach to their business applications, beginning to fully embrace the cloud as a means to improve flexibility and reduce costs. According to multiple industry reports, enterprises are expected to move more than 40 percent of their applications to a cloud delivery model in the next five years.
The biggest challenge for enterprises developing a broad cloud strategy is the sheer number of delivery options and suppliers from which to choose. Not only do buyers need to make complex decisions about the suitability of software-as-a-service (SaaS), business-process-as-a-service (BPaaS), or infrastructure-as-a-service (IaaS) for individual applications and workloads, but they also have to decide whether to use a public, private or hybrid cloud. The number of variables can make for a very complex equation.
A cloud transformation strategy is about enabling flexibility and agility, but there has to be a business case that reflects the shift from capex to opex, or the need for a variable compute model. Before embarking on the journey, enterprises first need to understand their current spending and discern which applications or workloads are best supported in a cloud delivery model. Evaluating and comparing cloud delivery models can be a drawn-out process that requires becoming familiar with a vast number of providers and offerings. Ultimately, developing a cloud transformation roadmap that touches all the appropriate departments and people across the business takes a long-term commitment and a significant investment of resources.
From experience, we know many companies get bogged down in the process of transforming to a cloud-first mentality. Trying to understand current asset-based costs and comparing them to new consumption-based models, determining which applications are cloud-ready, and re-working sourcing and contract management processes are but a few of the challenges organizations routinely face.
ISG has a set of tools and methodologies to help companies address and clear these roadblocks. We offer software tools to understand current costs and to assess cloud readiness, a methodology to effectively evaluate cloud service providers, and deep cloud financials expertise that can help IT and business leaders arrive at cloud solutions that best meet their business needs.
By combining cloud transformation advisory services, cutting-edge platforms and real-time, market-leading insights, ISG has developed a set of capabilities that are unmatched in the market to help buyers define the next generation of cloud sourcing. Contact me for more details.
About the authorSteve helps enterprises think through the opportunities and complexities brought about today’s dizzying array of emerging technologies. He is a seasoned professional, fluent in how to make transformational change with cloud, automation, mobile, or DevOps and discerning in where and when they add value. He has helped implement many global service delivery models and advised large multi-national corporations on their IT strategies. Steve co-authored Managing Global Development Risk, A Guide to Managing Global Software Development. As a Partner and member of ISG’s Executive Board, Steve leads ISG’s Digital Strategy and all ISG Service Lines for the Americas. Steve also leads ISG’s Alliance group and is ISG’s Executive Sponsor to the TBM Council.
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