Introduction
Introduction
In today's rapidly evolving technological landscape, the cloud has emerged as a fundamental enabler for businesses seeking to achieve scalability, agility, and cost-effectiveness. However, as organisations increasingly rely on cloud services to meet their diverse operational needs, they face a multitude of challenges in navigating the intricate terrain of hybrid cloud architectures.
This thought leadership market view publication includes interviews with 15 technology leaders and delves into the complexities surrounding the adoption of cloud technologies, whether private, public or hybrid, shedding light on the growing demands of the global enterprise.
Through analysis of industry research and insightful interviews, we uncover key trends and considerations that shape the decision-making process for organisations worldwide, which we hope can inform and benefit those looking to learn from their peers.
Embracing Hybrid Cloud as the New Norm
Contrary to the popular belief that public cloud is the universal panacea, our research reveals that the majority of organisations operate in a hybrid environment. A staggering 85% of enterprises surveyed opt for a combination of public and private cloud solutions. The research indicates this preference stems from the realisation that not all workloads are suitable for the public cloud, particularly for organisations handling sensitive information or operating in regulated environments.
Bill Genovese, CIO Advisory Partner at Kyndryl, emphasises that the approach to cloud adoption varies based on the industry and level of regulation, stating that:
In highly regulated industries like healthcare and financial services, a hybrid deployment approach is commonly observed, with some workloads on-premises and others in private cloud environments. Organisations are proceeding cautiously, it’s not going all-in with the public cloud.
Rethinking Cloud Decisions with Business Objectives in Mind
A paradigm shift has occurred in cloud decision-making, shifting the focus from a rush toward the public cloud as the panacea to a more rational and nuanced approach. Organisations now recognise the importance of thoroughly understanding their unique business objectives before determining the optimal locations for running applications and storing data. According to Wyatt Bennett at EXL, “a great cloud strategy directly aligns with business needs.'' Factors such as performance, regulatory compliance, security, and cost control are essential considerations that shape the cloud strategy.
Rethinking Cloud Decisions with Business Objectives in Mind
A paradigm shift has occurred in cloud decision-making, shifting the focus from a rush toward the public cloud as the panacea to a more rational and nuanced approach. Organisations now recognise the importance of thoroughly understanding their unique business objectives before determining the optimal locations for running applications and storing data. According to Wyatt Bennett at EXL, “a great cloud strategy directly aligns with business needs.'' Factors such as performance, regulatory compliance, security, and cost control are essential considerations that shape the cloud strategy.
A good cloud strategy, according to Robert Grigsby, involves building foundations correctly and prioritising which services and applications should be moved to the cloud.
Rushing the migration of everything can increase costs without reaping the expected benefits. Understanding which applications and services will bring the most business benefit when moved to the cloud is crucial.
The Ongoing Management and Maintenance Challenge
Beyond the initial setup, organisations face the challenge of day-to-day management and maintenance of their cloud infrastructure. While the public cloud may offer convenience in the initial stages, the complexities of ensuring security, resilience, and making necessary changes or expansions were cited by multiple respondents. This often leads to a disconnect between the desire to fully embrace the public cloud and the practicality of doing so when considering the workload. Understanding the ongoing management requirements is crucial for long-term success.
Addressing Skills Gap and Sovereign Cloud Concerns
The global IT skills crisis poses a significant challenge for organisations aiming to optimise their cloud strategies. Building an architecture that optimises skills and resources in the right places becomes essential, enabling efficient operations and leveraging AI and automation for high-level tasks. Additionally, the increasing trend towards sovereign cloud services highlights the need for data sovereignty, regulatory compliance, and control over sensitive information. Organisations are exploring different models, including partnerships between global cloud providers and local partners, to address these concerns.
Sustainability and Cost Efficiency in Cloud Deployments
Sustainability considerations have become increasingly important in the decision-making process, with approximately 75% to 80% of organisations in our study factoring in sustainability when evaluating their IT infrastructure options. The challenge arises when organisations must incorporate sustainability into their own data centres, requiring more efficient and environmentally friendly solutions. HyperCloud, a ground-up designed private cloud platform, offers significant benefits, reducing power consumption and cooling requirements, significantly reducing carbon emissions, and enabling denser, more efficient data centre utilisation.
Robert Fisher, Director of Technology at Publicis Sapient discusses in his interview
The potential dominance of private cloud solutions, the importance of involving the IT team early in the buying and implementation process, the need to consider hidden costs, as well as the user experience when choosing between cloud and physical solutions.
Conclusion
Navigating the Complexities of the Cloud
In conclusion, while public cloud remains a valuable tool in the IT strategy toolbox, it is not a one-size-fits-all solution. Organisations must take a measured and strategic approach to cloud adoption, considering factors such as specific requirements, cost, and the nature of services offered by different cloud providers. The shift towards a more pragmatic view of cloud adoption reflects a growing awareness of hidden costs and the need for a business-centric approach. By optimising both private and public cloud components, organisations can achieve an agile, cost-effective, and tailored cloud strategy.
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