Try Now
miraworks posts

Cloud’s trillion-dollar prize is up for grabs

5 March, 2021

Cloud’s trillion-dollar prize is up for grabs

More companies are starting to see the real benefits of the cloud, which has been long heralded as a catalyst for innovation and digital transformation, thanks to its ability to increase development speed and provide near-limitless scale.
For CEOs, cloud adoption is not just an engine for revenue growth and efficiency. Its speed, scale, innovation, and productivity benefits are essential to the pursuit of broader digital business opportunities, now and well into the future.

McKinsey Business Analysts determined four action steps CEOs should focus on when working with their tech leadership to begin their journey to the cloud: set ambitious targets, pursue a hard-headed economic case, adopt cloud-native ways of working and invest in standardized, automated cloud platforms.

Using cloud to lower costs and risk across IT and core operations is a rejuvenation that describes a break from traditional legacy approaches. The traditional on-premise model for managing applications and infrastructure is inherently inefficient, as it is highly manual and uses expensive technology equipment at less than full capacity.

The economics of cloud computing is both controversial and complicated. On the one hand, cloud provides access to automated capabilities that enterprises could never afford to develop on-premise, and cloud service providers (CSPs) leverage inverse correlation of workload usage patterns to run their assets at much higher utilization. On the other hand, CSPs charge based on consumption, and companies must remediate existing applications for them to run efficiently in the cloud. Companies that have built new systems in the cloud or remediated existing applications to leverage cloud attributes are seeing dramatic efficiency improvements.
Cloud enables companies to experiment with applications and new business models at a lower cost and greater speed. Executives who embrace cloud avoid large up-front capital outlays when they launch or expand businesses. To support this shift, organizations need new operating models focused on, among other things, managing consumption, gaining visibility into future demands, and forming integrated financial operations (FinOps) teams to maintain fiscal control.

Organizations that shift to public cloud unlock additional value by repurposing and reskilling their workforce to focus on higher-value tasks, such as developing products and services that address customer demands.
Research indicates that effective cloud usage can improve application development and maintenance productivity by 38 percent and infrastructure cost efficiency by 29 percent for migrated applications.

The good news is that many companies across a range of industries have successfully implemented public cloud to achieve impressive results. These companies follow three best practices. First, they execute a well-defined, value-oriented strategy across IT and businesses and install a cloud-ready operating model. Second, they develop firsthand experience with the cloud and adopt a much more technology-forward mindset than their peers. And finally, they excel at developing a cloud-literate workforce.
The acceleration in digital engendered by COVID-19 is likely to continue far beyond the COVID crisis, and companies must be prepared to respond and adapt rapidly. Cloud can not only help organizations move faster and reduce IT costs but can also support innovation and the integration of powerful, disruptive, emerging technologies.