How to navigate a digital transformation to the cloud

The first official cloud storage service was Dropbox, launched in 2007. By 2010, Microsoft launched Azure, and just one year later, the hybrid cloud was introduced to the market, albeit conceptually. By 2017, the cloud computing market was estimated to have reached $246 billion.

While 95% of companies are reported to be using the cloud (Entrepreneur), 47% of those are hybrid solutions which supports the reports' findings that the top inhibitors in 2017 include privacy, security and vendor lock-in. There is no doubt that digital transition to the cloud is complicated and companies remain cautious.

Moving to the cloud is tricky

Despite the pace at which cloud has grown, corporate adoption has been much more cautious. No doubt we will get there. But the risks and liabilities associated with security, privacy and vendor lock-in have slowed what was expected to be a much faster transition, says Emile Rossouw, Business Development Manager at EOH.

Who has done it well?

There are several ways to easily prove a cloud strategy: e-mail, storage, disaster recovery and back-up. But it's not that simple because companies all have existing infrastructure in place.

"Companies 'born in the cloud' like Amazon and Google have the advantage because they don't have to unlearn, or rationalise, huge legacy investments of old," explains Rossouw.

But, most companies don't have that luxury. So, how do companies navigate a digital transformation to the cloud and not risk being left behind?

What should you consider?

"The first things to consider," says Rossouw, "is what you have, and what you need, and your business strategy must lead this." Some of the most obvious advantages include flexibility, disaster recovery, collaboration, and competitiveness.

Flexibility: Cloud enables companies to scale both in regard to its data volume and multinational growth, providing 'on-demand self-service, rapid elasticity, and broad network access'. Flexibility is invaluable in today's business scenarios which are in constant evolution.

Disaster recovery: Recovery of assets is crucial. However, a disaster recovery plan and its necessary mechanisms must be in place already.

Collaboration: Dynamic business scenarios require businesses to constantly innovate and find ways to be more efficient, and quicker to market. Real-time collaboration via cloud services between functional teams, and those in different cities or even different countries enables more efficient working processes and productivity.

Competitiveness: Cost savings, achieved by improved business flexibility and improved collaboration, enable a company to be more competitive in their market offering, either by handing costs down to customers or re-investing those savings into R&D.

However, there are some limitations too which need to be expertly navigated. The extent to which these inform your needs will be dependent on your business strategy and objectives.

"Take security," one of the top three inhibitors. "A business's greatest risk may actually be its employees. Poor understanding of the cloud and careless usage could open the business to data leaks. To mitigate against this, employees must become cloud savvy, understanding the potential pitfalls, and 'dos and don'ts'."

This necessarily presupposes a process of change management.

"Cloud services require a simple but important organisational mind-shift. The organisational journey to the cloud is not just about the technology and use of the applications, it's about helping employees develop the broader competencies to understand the benefits and risks - so that they can deliver on the business objectives behind moving to the cloud in the first place," explains Rossouw.

Competencies must be supported by the correct tools for adoption and implementation. For instance, the technology to access documents on SharePoint. "Adoption is critical," says Rossouw. "You can implement all the best technology and cloud services available, but if the implementation is clunky or detached then you'll never realise the benefits of cloud."

Businesses should follow the '6 Steps to Adoption' [RS1] to navigate the implementation effectively, and ensure the existing infrastructure is capable of supporting the transition.

If existing infrastructure has limitations, then the cloud service won't be fully leveraged because adoption will be slowed.

While this is, in part, the reason for the high uptake of hybrid solutions, it is also an example of how companies - especially in South Africa - have outdated governance and security policies.

"An interesting nuance in South Africa is that most businesses tend to sweat their assets far longer than developed countries in Europe. In Europe, companies run a three-to-five-year run cycle on their technology, but South African companies run a five-to-seven-year cycle, putting us constantly behind the curve when it comes to updating technologies, such as our infrastructure," says Rossouw.

Fortunately, however, regulatory restrictions are falling down the 'inhibitors' list. International and companies' laws are working quickly to adapt to the cloud landscape. For instance, cross-border storage of data was previously complex, but, now, as long as the country the business's data is stored in has more stringent security than the country of origin, then a cloud storage service may be used.

What are your options?

1. If you decide to undertake a digital transition to the cloud, make sure you follow an effective adoption path, and understand that updated governance policies and procedures go to the heart of adoption.
2. Engage a partner to help transition your business to the cloud safely and strategically. This partner must know how to be able to run a private, public, hybrid with SaaS - the whole landscape.
3. Be prepared to upgrade your technology, because cloud sits everywhere: in your app development, your CRM, and your BI.

The reality is that multiple cloud strategies are popular right now because it's unclear what companies will have to pay for their cloud service in five years' time. But a digital transition to the cloud is more than just licensing and consuming. Organisational digital transformation costs money to implement effectively.

Companies need to find a partner that can assist them navigating the journey and can advise on the technology, licensing and consumption, but also the strategic considerations and organisational change management.

This type of adoption does not need to be complex. It is a case of navigating your digital transformation holistically and having a partner on board to help bring your business under one strategy and move towards cloud, collectively.