A Perspective on Maximizing Cloud ROI
Updated: Apr 13
As an enterprise architect, I have witnessed first-hand how the promise of increased efficiency, scalability, and cost savings drives businesses towards cloud migration. However, I have also seen that merely migrating to the cloud does not guarantee these benefits. Organizations often struggle to achieve the desired ROI due to poor cloud architecture, operations, and strategy. In this article, I will share my insights on the challenges businesses face when migrating to the cloud and provide practical advice on maximizing cloud ROI from an enterprise architect's perspective.
The Challenges of Cloud Migration
Redundant Data Storage Systems: In my experience, proper cloud migration involves dealing with data storage systems that are filled with redundancy and lack a single source of truth. This requires significant effort to reorganize and optimize data storage in the cloud.
Missed Opportunities: During cloud migration projects, I often uncover missed opportunities for better business processing, such as integrating analytical systems into business processes for improved decision-making.
Cost Monitoring and Optimization: I have found that implementing finops for cost monitoring and optimization is crucial to ensure cloud expenses are kept under control.
Refactoring Applications: Applications that should have been refactored before migration need to be addressed to maximize the benefits of cloud-based platforms.
Common Missteps and How to Address Them
Inadequate Planning: I have seen enterprises rush into cloud migration without fully understanding the consequences of moving in a less-than-purposeful manner. To address this issue, organizations must conduct an honest assessment of their current state, identify the factors preventing the desired ROI, and eliminate them one by one.
Unpredictable Cloud Costs: Predicting cloud costs can be challenging due to the pay-as-you-go pricing model. In my experience, implementing better planning practices and a robust cloud FinOps program can help organizations monitor and manage cloud computing costs more effectively.
Siloed Business Functions: I have observed that cloud services are often used across various business processes and functions, making it difficult to measure the specific impact of the cloud on overall business performance. Developing a holistic strategy that encompasses both human and automation disciplines can help businesses better understand cloud spending and the value derived from it.
Security and Compliance: Security and compliance challenges can impact cloud ROI. Businesses must plan for additional security costs and address compliance challenges through a mix of security cost planning, security cost observability, and coupling security spending with traceable value.
Vendor Lock-in: The risk of vendor lock-in can limit business flexibility and increase costs over time. In my role as an enterprise architect, I always encourage organizations to carefully consider their cloud provider choices and assess the potential for lock-in when making decisions.
Leveraging Cloud Technology as a True Force Multiplier
Embracing Innovation and Culture: I have found that organizations that successfully maximize cloud ROI do so by embracing innovation and fostering a culture that supports it. This involves leveraging cloud-based technologies to drive business value and create systems that elevate business performance.
Utilizing Cloud-Based Solutions: In my experience, innovative organizations capitalize on cloud-based solutions to automate processes, enhance customer experience, and create new products or services, all of which contribute to increased ROI.
As an enterprise architect, I can attest that the key to maximizing cloud ROI lies in addressing the challenges associated with cloud migration and adopting a strategic approach to cloud architecture and operations. Embracing innovation and fostering a supportive culture can unlock the full potential of cloud technology, enabling organizations to realize even greater ROI and drive their businesses forward. Don't let cloud migration pitfalls derail your ROI – invest in a disciplined and strategic approach today.