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Seven Methods to Efficiently Capitalize on Cloud Investments

By Apoorva Kasam - April 07, 2023 6 Mins Read

Seven Methods to Efficiently Capitalize on Cloud Investments

Transitioning to the cloud requires adequate investment, planning, and foresight, while cloud costs are an ascending concern—the right strategy, talent, tools, and contract help businesses to capitalize on cloud investments efficiently. 

Even though the cloud offers robust efficiencies, enterprises fail to realize its full potential. More importantly, they direct attention only to migration rather than a range of services the cloud offers, during which companies relinquish to maximize their cloud investment value. Here are seven methods businesses can capitalize on cloud investments.  

Resonate Business and Cloud Strategy

Data is invaluable for businesses; however, it is a complex asset. Disorderly and disjointed tech stacks are the root cause of inefficiencies within the enterprise. No alignment among data gathering, usage, and partnership with departments inside an organization can easily disconnect businesses from their goals. To address this gap, organizations must ensure that every unit’s tech stack corresponds to the entire enterprise.

Firms must initiate aligning internal teams by portioning the ownership of cloud strategy, summoning all stakeholders to scope out cloud-based aspects required to deliver powerful outcomes. This modern strategy comprises connectivity, partnership, and functional identity, allowing businesses to enrich customer data.

Also Read: Top Strategies to Manage Multi-Cloud Environments

Station a Cross-functional Team

One of the significant lapses when pursuing cloud opportunities is missing to make adequate cross-functional efforts from the top down. Without business units and development teams, the driven transformation cuts minute refinements. This misstep leads to ineffective cloud adoption from an efficiency and budget perspective.

Therefore, IT leaders must station a team of crucial stakeholder representatives during the groundwork stages of the cloud transformation journey. This offers businesses a 360-degree view of enterprise cloud needs and utilization.

Determine a Plan and Invest in AI

Enterprises must devise a plan to ensure the purpose fulfills these questions- How moving to the cloud will offer the business? What are the unique outcomes they want to realize? What major gains will be moving to the cloud will provide businesses with? Addressing these questions will help companies to gain clarity and select the best cloud solutions.

Businesses must include

  • a hybrid cloud strategy,
  • infrastructure as a service (IaaS),
  • platform as a service (PaaS), and
  • software as a service (SaaS) in the devised plan.

At the same time, a managed cloud services provider assists in mapping the vision to the services and products businesses sell.

Data analysis is crucial for businesses learning in cloud technologies. AI tools offer cloud-based predictive capabilities and ML to minimize operational costs and staff burnout and maximize efficiency.  

Restrict Unnecessary Cloud Spending and Implement Robust Security

Transitioning to the cloud is a significant event requiring business leaders to make several decisions, like strategies to prevent cloud budget wastage. This typical act includes paying for unused obsolete resources and spending extra upfront for infrastructure and dispensable subscriptions or legacy fees.

Therefore, thorough research and preventing dreaded cloud vendor lock-in will diminish overspending habits. Business leaders efficiently look for areas they can save or cut to stretch the budget. However, cloud security is a crucial aspect where businesses must avoid making budget sacrifices.

Companies must consider security features as non-negotiable and as groundwork for building cloud investments. Spending on cloud security gives access to the updated tools to combat and prevent cybercrimes and retain the data safely.

Construe Baseline Expectations and Establish Complete Business Case

Enterprises need a complete understanding of the efficiencies they want to procure from the cloud and their current environment. This necessitates checking the value of the existing environment and the benefits they will seek by adopting the cloud and significant timelines for achieving the value. After construing the baseline expectations, businesses can choose expertise, solutions, and providers that best resonate with the cloud’s goals.

It is essential to be realistic regarding how much a premise-based compute footprint can be migrated. Migrating to the cloud is a well-thought-out business case rather than an optimal strategy a hurried approach results in elevated costs over the long term.

At the same time, shortcuts and frenzy migration results in technical debt that diminishes the impact cloud transformation can provide. More importantly, businesses must interpret the cloud as a modernization journey and undertake initiatives like re-architecting, re-platforming, and refactoring to optimize the cloud applications effectively.

Negotiate Cloud Contract Terms

IT leaders need relevant market insights to initiate meaningful negotiations with cloud vendors. This affects the expected discounts, favorable terms and conditions, and transformation timelines. Enterprises must carefully evaluate terms and conditions in cloud agreements and assess potential cloud solutions and providers.

Also Read: Managing Cloud Computing Cost: Challenges & Strategies

More importantly, customers may have unique opportunities to secure more straightforward and favorable contractual terms amidst the current economic environment. To achieve this, enterprises must invest time into the process for significant engagement with numerous cloud providers or pivot to a better solution if required.  

Employ a Good Cloud Management Platform

Real-time transparency within the cloud environment is crucial and prevents unexpected colossal bills from coming from cloud providers. Multiple cloud cost management tools offer a real-time interface to the cloud service providers’ pricing. These tools align the enterprise’s cloud usage patterns with adequate cloud services like IaaS and PaaS and native configurations like service instance size/type/size.

Businesses must look for tools that have-

  • Financial management capabilities and its ability to integrate with automation tools for processing technical deployments.
  • Capacity to pull usage from on-premises and cloud environments.
  • Potential to model the look and costs of on-premises environments no numerous clouds.
  • Adequate engineering support for proper configurations.

Enterprises might interpret cost overruns as inevitable; however, failing to address them is a significant mistake. Understand the root cause and must make intelligent, deliberate, and cost-effective decisions. Moreover, it is essential for IT leaders to regularly re-assess the cloud march to ensure the intended value is achievable.

Furthermore, it is essential to understand the existing environment to act strategically to accelerate the future value of the cloud. Also, construing SLAs to measure performance against value is critical and adds weight to the enterprises’ stated goals.

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Apoorva Kasam

Apoorva Kasam is a Global News Correspondent with OnDot Media. She has done her master's in Bioinformatics and has 18 months of experience in clinical and preclinical data management. She is a content-writing enthusiast, and this is her first stint writing articles on business technology. She specializes in Blockchain, data governance, and supply chain management. Her ideal and digestible writing style displays the current trends, efficiencies, challenges, and relevant mitigation strategies businesses can look forward to. She is looking forward to exploring more technology insights in-depth.

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