The Journey to Cloud Adoption

 

I recently participated in a Progressive CFO webinar where I was able to bring a cloud technology perspective and highlight its advantages during the webinar conversation. For those of you looking for a deeper dive on that topic, I’ll elaborate a bit in this post.


Cloud is not a technology of tomorrow; it is a technology of today. The decision to adopt cloud technology represents a business choice to focus on driving innovation, service quality, customer satisfaction and competitive advantage, rather than expending resources on running IT systems.


What we see in Amazon Web Services (AWS) is that customers quite often frame their objectives behind cloud adoption only in terms of reducing operational costs. Such mindset is limiting and is preventing organisations from maximising the transformational benefits of cloud adoption.

 


the journay to cloud adoption with CCH Tagetik



By embracing cloud computing, , Fabio Veronese, Head of IT Infrastructure at ENEL, reported at the AWS re:invent 2016 conference that his company indeed saw cost savings of about 20% on computational power and up to 60% on storage cost. But he emphasized that the company had also seen additional business benefits. For instance, because waiting time for computational power went down from 4 weeks to 2 days after moving to the cloud, professionals had much more time available for analysis, experimentation, modelling, and innovation.


 

This is an innovation and productivity story that we hear time and again from our customers. McDonald’s Corporation is another example. Using AWS, McDonald’s transformed into a digital technology company, beat performance targets by up to 66 percent, and now completes 8,600 transactions per second via its point-of-sale (POS) system. The company was also able to roll out its new e-commerce platform to 5 countries after taking a really close look at the architecture and recognizing that they were going to require public cloud for scalability, security, and near-infinite capacity and capabilities. We see so many cases now of new businesses that are disrupting well-established industries. Whether it was Netflix in the video rental space, AirBnB with hospitality business or Amazon itself in its early days of selling mainly books, we see the same story: a choice to focus on serving customers better that is made by out-sourcing IT service delivery to AWS.


 

I now routinely ask executives who are considering AWS cloud adoption, “If you left your job today to start a competing company, would you still choose to tie up capital and operating expenses in building and running IT systems or would you choose the cloud?”

Another question I ask is “Assuming the cost of on-premise IT solutions and cloud-based solutions are the same, which would you choose?”

The point behind these questions is that cloud adoption is about much more than cost reduction. The cloud gives an organization the ability to do more with less, act faster, scale up and down with a click, get access to the outputs of AWS’ R&D and match cost to usage—all benefits that serve to reduce costs, improve security and compliance, and make much more efficient use of capital.


 

The decision to adopt and expand cloud computing is not a 2-dimensional issue around price and features. It is multi-faceted and different benefits appeal to different stakeholders. The advice we offer from AWS, is to start by clearly framing the problems that cloud adoption is expected to solve and the expected benefits – not just top-level cost savings. Then build consensus around a business plan that is easily understood by non-technical stakeholders in order to build trust and develop an efficient and effective plan for the organisation’s cloud adoption journey.

 

 

 

 

Finance in the cloud without compromise with CCH Tagetik

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