Businesses transferring data and applications to the cloud for infrastructure savings and agility advantages are referred to as cloud 1.0, whereas cloud-powered or cloud 2.0 delivers enterprise-wide value. According to PwC’s Cloud Business Study, 78% of executives are using the cloud in some or all areas, while just 10% see overall advantages. Organizations are reconsidering their current cloud transformation journeys to meet this gap.
Switching from tactical to strategic
Businesses are shifting from a piecemeal cloud-powered strategy to a strategic cloud-powered strategy that involves re-hosting programmes from their own data centres to the cloud. This change offers infrastructure savings and flexibility but limits possibilities. Cloud 2.0 is mostly strategic and focused on business goals. Beyond migration, businesses must understand when, where, and why they are leveraging cloud technology. A capability roadmap aids in unlocking the cloud and redesigning operations. This new phase may require developing or updating a genuine cloud strategy, upgrading current cloud services, and redesigning the front office by building next-generation business models and replacing outdated apps with cloud-native technology.
Identifying the true value of cloud computing
Cloud-enabled firms have transformed themselves by upgrading software and implementing next-generation cloud-native office apps. For innovation, they link migrated apps to Cloud Service Providers (CSPs). Modernization enables the acceptance of novel technologies such as IoT, AI, and predictive analytics, enhancing the return on cloud investments. It is advantageous to implement cloud technology according to a company’s reasons. Companies gain from increased scalability and agility, which allow them to focus on results-driven activities and maintain revenue growth despite economic uncertainty.
Cloud costs should be included
Companies frequently focus on technical savings, such as closing down data centres and migrating data to cloud providers, but they ignore cost issues such as computing and storage needs, network bandwidth charges, risk and control implementation, and continuing maintenance. Consider employee training, technology inspections, modernization costs, and financing for a cloud center of excellence. It is advised to use a thorough cost calculation framework that is customized for specific company objectives. Cloud-enabled businesses save an average of 92% on costs, demonstrating the need to prioritize key business goals and concentrate on particular cloud conversions.
Cooperation and confidence are required to achieve Cloud 2.0
To maximise ROI on cloud investments, CIOs must engage with other C-suite leaders in Cloud 2.0. According to PwC research, while scoping out cloud transformation initiatives, more than 80% of cloud-powered firms report collaborating with their CISO, CDO, CEO, and COO. This ongoing cooperation is expected to have a domino effect, allowing CIOs and CFOs to precisely evaluate how the cloud is affecting their organization’s financial model and ensuring cloud integration into company strategy.
Transformation involves trust
Trust is another important feature of Cloud 2.0, and it should be included in all transformation activities. This includes more futuristic areas like AI, the metaverse, and Web3, which are the basis for the next wave of innovation and uniqueness and are only possible because of the cloud.
Conclusion
To fully take advantage of the endless opportunities that the cloud can bring, all businesses who are looking at whichever technology is delivering them the greatest value will need to focus on strategy. They must also balance enterprise-wide reforms with an understanding of when and when it is not necessary to get there.
It’s all part of the pursuit of the cloud’s elusive ROI, and it’s well worth the effort, particularly given that all “cloud-powered” businesses claimed enhanced decision-making following their transformation.
