Cloud Computing is Driving IT Transformation, Omdia Finds

  • As the number of workloads operating in the cloud grows, organizations are recognizing that they must adopt the correct strategy for digital transformation.

  • Demand for resiliency has seen the growth of hybrid cloud.

  • The role and purpose of IT in organizations is undergoing significant change, driven by the need to become more agile and have greater control over cost levers.

As the number of workloads operating in the cloud grows, organizations are recognizing that, in a multicloud world, they must adopt the correct strategy for digital transformation. Demand for resiliency has seen the growth of hybrid cloud.

Roy Illsley, Omdia

Roy Illsley, Omdia

The role and purpose of IT in organizations is undergoing significant change, driven by the need for businesses to become more Agile and have greater control over the cost levers when it comes to technology. This transformation of IT involves many different aspects—not all of which are technology-related—but the one thing they have in common is that IT modernization is about changing to meet the current and future demands of the business.

The adoption of more core business workloads to the cloud will accelerate the need for organizations to transform their organizational roles, responsibilities, processes, and structures. Omdia considers that, as the percentage of workloads operating in the cloud increases toward the 50% mark (ICTEI survey 2020 finds 35% of workloads are public cloud), then the organizational transformation must be equally well advanced. The selection process of the workloads to migrate, and their relative priority, is a capability organizations’ need to develop: selecting the correct approach to ensure that business outcomes are achieved will be the measure of success, and CIOs must have a strategic plan for delivering on those outcomes.

The challenges of managing cloud resources and services has become a much greater part of IT departments’ role and responsibility over the past ten years, and these challenges are amplified as organizations adopt differing public cloud and hybrid cloud approaches. As the use of cloud computing continues to grow, organizations will look for more Agile approaches to IT delivery of applications, workloads, and services. Initially, many organizations adopted cloud for business productivity and customer facing applications, but increasingly the types of applications and workloads moving to a cloud environment is changing to include core systems such as ERP, CRM, etc. While it is true that the cloud is not the ideal environment for every workload/application, it is now becoming the accepted norm that a cloud-first strategy is more common.

As the type of workload/applications moving to the cloud is changing, so is the expectation of what the cloud provider must deliver to meet business needs. This increased demand for resiliency, protection, and service continuity has seen the growth of hybrid cloud environments. The hybrid cloud is not a singularity—it is a construct that enables bridges between clouds to be built so as to support workloads/applications that require on-premises deployment. The cloud providers are extending the operational and functional benefits of their cloud platforms to customer premises. The goal is to make it easier for enterprises to take advantage of cloud services. The motivation is to drive more traffic and revenue to the cloud, and to capture those customers that have previously been reticent to move core applications to the cloud because of regulation and compliance requirements.

To read more, go to www.Omdia.com.