If the application is well architected, its infrastructure is well architected and properly configured, and the life cycle of the existing hardware is factored into the calculation, you will see a cost benefit. The cloud can be much more cost effective because its elasticity can accommodate usage surges and reduce costs with its pay-as-you-go model. The second is understanding the all-in costs of on-premises operations versus those in the cloud. Companies often significantly overvalue or undervalue these costs, which leads to uninformed decision making. The first is understanding the financial and reputational consequences of an outage for the business. By confining their cloud migrations to less-critical apps, they miss out on significant value, since the return is significantly less than it would be on tier 1 workloads.Īddressing these issues starts with doing two sets of foundational analysis. In fact, after surveying executives and technology leaders at many of the world’s largest organizations, we found that fewer than 10 percent have successfully moved mission- and business-critical processes and workloads (tier 1) to the cloud. These concerns partly explain why fewer companies than expected have moved critical business applications to the cloud. Adding to those concerns is the evolving regulatory landscape. Resiliency is critical for capturing cloud valueįor a variety of reasons, including rising customer expectations, many heads of business have expressed concerns about ensuring that their mission-critical applications are always running and available. Many of these patterns revolve around simplifying the technology to reduce technical debt, automating functions, and enabling applications to take advantage of the cloud’s capabilities. But to capture these benefits, companies need to design, architect, and implement the right resiliency patterns to meet business and customer needs. The cloud can offer faster recovery time, more flexibility to support resiliency, and more tools that provide sophisticated resiliency capabilities. Moving to the cloud can significantly improve stability compared to on-premises environments. An important element in getting that value relies on the resilience of applications running in the cloud, especially since much of the cloud value at stake is dependent on running mission- and business-critical workloads. 1 “ Projecting the global value of cloud: $3 trillion is up for grabs for companies that go beyond adoption,” McKinsey, November 28, 2022. Organizations are eager to capture their fair share of the estimated $3 trillion opportunity in EBITDA lift that can be enabled using cloud platforms.
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