Pain Points in Enterprise Cloud Technology Adoption

The demand for computing infrastructure continues to increase, yet companies continue to invest in local infrastructure without seeing the speed at which the cloud is growing.

This paradigm continues to evolve, and the near future is expected to be the ubiquitous computing model as a driver of business innovation; where there will be the assembly and integration of applications in a distributed cloud model, performed on a multi-cloud and hybrid strategy: in search of the desired outcomes, the guiding principles and practices, and the guidance and governance of teams to achieve those outcomes.

We analyze the market situation, future forecasts, and the main factors to achieve a successful cloud adoption.

Current cloud Market

We have detected that more than half of the companies in Spain spend up to 10% of their budget on cloud technology. They recognize the benefits that technology can bring, and many prioritize investment in technology.

For its part, the SaaS budget is growing as the cloud budget increases. In today’s technology-driven world, SaaS has become the standard method of purchasing and deploying software, and the growth of the enterprise application software market reflects this.

Expected benefits of cloud services

For several years now, the feeling towards cloud services has been one of satisfaction since they have achieved the benefits expected at the time of contracting.

From highest to lowest, according to the perception of the companies, the main ones are as follows:

1. Flexibility
2. Scalability
3. Agility
4. Security
5. Time to market
6. Other: process simplification, IT dedicated to value-added tasks, rapid service provision, access to new technologies, connectivity and service integration, speed of innovation and diversify services.

The importance of Cloud Strategy

Organizations are aware of the advantages of cloud services and their possibilities, although the strategic importance they attach to them today is moving in decreasing parameters.

This indicates that we are in a slower and more sustained adoption phase because the renewal of infrastructure in private cloud format has already taken place in virtually all organizations, and we are not in the adoption of public cloud services. This situation does not necessarily mean that the cloud services market will not grow, but it will grow intensively in those companies with a “digital and transformative” profile and less in companies with a “traditional” profile.

• Traditional:
  • Silos and isolated processes.
  • IT as a cost center.
  • Focused on the short term.
  • Parallel projects without an aggregated vision.
  • Support based on FTEs and bags of hours.
  • Need to migrate areas to the cloud and reform their IT department.
  • Adoption of IaaS and use of self-service, but with difficulties in having a managed service. Sporadic SaaS usage.
• Transformers:
  • Technology is the means to an end.
  • Minimum three-year plans, but with projects with regular review cycles.
  • Older technology is still acceptable if it helps in transformation and maintaining technical advantage.
  • Business objectives and outcomes linked to technology objectives and deliverables.
  • Use of SaaS/PaaS for applications such as email, office automation, finance, or human resources.
• Digitals:
  • New service or development requirements originate from the business or customer side.
  • Adoption of vendor-agnostic, customized, innovative solutions.
  • 24/7 managed and industrialized services.
  • Business objectives and results linked to technology objectives and products.
  • Usage-based “cloud first” strategies in search of efficiencies and elimination of silos.
  • Automation to improve service levels and user experience.

Depending on the objectives pursued by the company and its cloud strategy, we have different service models and workloads: SaaS (Software as a Service), and its objective is to consume; PaaS (Platform as a Service), whose objective is to build; IaaS (Infrastructure as a Service, with the objective of hosting.

Less than half of business processes are run in the cloud. SaaS is emerging as the preferred service model, surpassing IaaS for the first time, thanks to its ease, maturity, and options.

On the other hand, the volume of companies that have an optimized strategy in relation to the cloud has grown in 2023, specially in the companies that 18 months ago had their strategy in definition.

However, a worried percentage of companies state that they do not have a strategy that includes the use of technology through a combination of on-premises, hosting, and colocation. Even so, they recognize the importance of having a defined strategy in order to be able to evaluate opportunities for improving their services.

SaaS for companies

As we said above, SaaS is positioning itself as the cloud model of choice for companies, so let’s explain in a little more detail what it is.

Software as a Service is a way of delivering applications over the Internet instead of installing and maintaining software and hardware.

Some of the most common Saas applications are email, CRM or project management software and that, with the improved speed of the Internet. Some of the factors that have driven its adoption are: more robust cloud infrastructure, mobile first approach, AI, integration with other applications or services and data security.

It is so popular because it helps companies use their resources more efficiently, improving personalization, reducing costs, and ensuring efficiency. In addition, some of its main functions to improve business are:

• Drive lead management through better identification and tracking throughout the sales cycle.
• Improve sales and marketing collaboration by better capturing and sharing customer insights.
• Improve digital marketing campaign automation.
• Optimize data management.
• Contact management with better storage, organization, and tracking of customer, prospect, and lead information.

Hybrid model as the favorite

The multi-cloud or hybrid model continues (and will continue) to be the preferred way for organizations to consume cloud services. The mix of private cloud, on-premises, and third-party, public cloud allows organizations to combine new and legacy technologies that best suit their unique and specific needs.

The evolution of this model as the preferred model for enterprises has been dizzying for a few years now. Product manufacturers have helped through unified management solutions, containerization, and integrators, developing services and providing knowledge and talent.

This is why the cloud services integrator is so important. This integrator is capable of offering traditional data center and managed infrastructure services combined with application integration and implementation services, as well as managed operation, maintenance, and evolution services, certified in one or more of the main hyperscale public cloud providers.

Pain Points in Cloud Adoption

When it comes to contracting cloud services, the main barrier lies in the contractual and cost aspects imposed by hyperscalars, such as rate increases, dependency, data security, company culture, migration of legacy applications, amortization, etc.

However, in today’s digital landscape, migration to the cloud has become imperative for organizations looking to remain competitive and agile. The advantages of adopting this technology are undeniable, but it also presents some challenges. Some of the most common pain points organizations encounter during cloud migration include the following.

Lack of planning and strategy

One of the most common migration problems is the lack of a clear plan and strategy. As a result, companies that decide to make this journey without a well-defined roadmap often find themselves lost in the complexities of the cloud.

The lack of a clear strategy leads to problems such as delays, cost overruns, and even project failure.

Data Security and Compliance Concerns

Moving sensitive data to the cloud creates numerous misgivings and concerns about data security and compliance with industry-specific regulations.

Choosing a cloud provider that offers robust security features and compliance certifications to safeguard data effectively will be key to making the move.

Migrating legacy systems

Many enterprise applications need to be modernized to work effectively in the cloud. This may involve code rewrites, architecture changes, and dependency upgrades.

Failure to modernize can lead to performance issues and inefficiencies, so this is another important factor to consider.

Cost management

Poor management of cloud costs can greatly affect a company’s budget. Without proper monitoring and optimization, related expenses can spiral out of control.

Understanding usage patterns and implementing cost-saving measures are crucial for effective management.

Lack of knowledge

It is common for many companies to lack the technical expertise to migrate to the cloud successfully.

This lack of knowledge can hinder the migration process, slow progress, and lead to costly errors.

Cloud Adoption Framework

To overcome all of the above obstacles and achieve an effective cloud migration, a clear strategic plan must be developed that can:

• Ensuring security
• Modernize legacy systems
• Create a cost plan
• Maintain success in the cloud
• Continuously monitor and optimize
• Automate with DevOps
• Foster a culture of innovation

At Plain Concepts, we provide you with a Cloud Adoption Framework that improves your efficiency, optimizes costs, creates value, increases productivity, and drives innovation.

It is a comprehensive framework that reduces risk, controls transition costs, and guides you through best practices. You can enlarge the image to see it in detail.

Although the path to the cloud poses numerous challenges, addressing these pain points with strategic planning and expert assistance will lead you on a successful and sustainable journey that will ensure competitiveness and innovation.

Don’t wait any longer, and contact us to transform and grow your business, unlocking new opportunities that will ensure a promising future for your business.