3 Reasons most companies are only 20 percent to cloud transformation

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Cloud Transformation Current scenario

Cloud computing has taken the world by storm. The on-premise infrastructure and the legacy systems that once dominated the IT landscape have become redundant with the arrival of the cloud. The cloud offers you a host of benefits like scalability, flexibility, faster deployments, etc.

But some organizations and enterprises don’t consider the cloud digital transformation as their cup of tea.

A survey by Bain and Company revealed that most organizations put only 18 percent of their workloads in the cloud. A study by McKinsey & Company commissioned by IBM shows that a majority of the organizations have migrated only 20% of their workloads into the cloud.

The survey says that the cloud model fails to address the intricacies that are presented by the remaining 80% of workloads thus forcing enterprises to maintain their workloads on on-premise infrastructure. This brings to the foreground the underlying reasons as to why a few organizations are still a long way from embracing the Cloud transformation.

Reasons For Slow Paced Cloud Transformation

1. Heavy Investments made on On-Premise Infrastructure

Many organizations and enterprises have made huge upfront and lump sum investments on their on-premise infrastructures and hence they don’t have the mindset to look onto the cloud as an alternative either due to the cost constraints or due to the necessity of overhauling the existing infrastructure. Their major chunk of applications are based on legacy platforms and they are unwilling to migrate to the cloud as their legacy applications will not be compatible with the cloud. Connecting legacy systems and applications to the cloud is a herculean task as most of the legacy-based applications are not cloud-ready.

2. Specific Workload Needs

Public cloud services being spread across multi-locations and based on multiple vendors is considered to compromise security and compliance especially when it comes to sensitive and proprietary data and applications. Of course one can use private and hybrid clouds to address this concern. Private cloud services are more expensive and have limitations as far as their operational zones are concerned.

Also, private clouds unlike the public cloud have constraints in their computational and storage capabilities. Hybrid cloud enables you to bypass both of these concerns i.e. the security concern posed by the public cloud and the computational and the operational concerns posed by the private cloud. But the management of hybrid cloud platforms is indeed a daunting task as you have multiple cloud platforms.

3. Cloud Is Not Their Business

Some businesses, especially the well-established ones which have been for years do not consider the cloud as a worthy investment. They might have had the most fruitful business with those systems which we now refer to as the legacy systems. Some organizations are still comfortable managing their on-premise infrastructure as compared to hiring a third-party service provider for the cloud. They have become so used to legacy systems that they don’t have the in-house expertise to address issues such as application modernization. Many of these organizations are not even able to reach the starting point of their journey to the cloud. Staff is better accustomed to replacing retired or aging equipment in an on-premise infrastructure as compared to setting up a firewall in the cloud. This “If it ain’t broke, don’t fix it” mentality makes them feel comfortable with their legacy applications and they don’t consider the cloud as an urgent necessity.

Final Thoughts

On-premise infrastructure was the only choice that was available some twenty years ago. Cloud computing has expanded far and wide ever since it arrived in the early half of the first decade in this millennium. If you are keen on modernization of your applications and infrastructure, providing better customer experience, etc you will have to be on the path to digitalization.

Indeed, the cloud is the starting point to digitalization.

So, If you are giving serious thought to cloud adoption, Activelobby is here to help you out. Activelobby, as a cloud support services company, offers affordable customer service and technical support for cloud partners and users across the globe. The services we provide are extremely agile, making it really easy to scale your team based on the size of the platforms.

We manage and support all major cloud platforms such as Amazon Web services (AWS), Microsoft Azure, Google Cloud Platform, Alibaba cloud, and platforms created using Openstack, OnApp, Odin, etc. Our team of certified cloud solution architects works with you to deliver an optimized infrastructure using both cloud-native technologies, proprietary products, or open-source products. We manage your public or private cloud platform and provide round-the-clock monitoring, security, troubleshooting, and end-user support services.

Our cloud migration consulting services enable a hassle-free transit of your workloads to the cloud. You can move your workloads to any cloud platform after we assess your business continuity and disaster recovery processes for each workload.

Begin the wonderful journey to the cloud with Activelobby


Rohith Krishnan

Rohith SK is an MSC computer science graduate living in Cochin, Kerala. As a technology enthusiast, he is always on the lookout for the latest trends and developments in the field, with a particular interest in cloud computing and DevOps updates. Apart from his passion for technology, Rohith SK is an avid reader and enjoys spending his free time exploring different genres of literature. He believes that reading is one of the best ways to expand one's knowledge and understanding of the world. With his expertise in computer science and a passion for technology, Rohith SK regularly contributes articles and blog posts on the latest trends and updates in the industry. His articles offer insights and valuable perspectives on the various aspects of cloud computing and DevOps, and are widely read and appreciated by readers all over the world. As an experienced technology writer and researcher, Rohith SK's articles are well-researched, informative, and easy to understand, making them accessible to readers of all levels of technical knowledge. Whether you're a beginner looking to learn more about the latest trends in technology, or an experienced professional seeking insights and updates, Rohith's articles are sure to provide valuable information and insights.

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