Why are IT decision-makers under pressure to save?
What if I told you one in five IT decision-makers at SMEs across the UK feel rushed while implementing public cloud migration projects? Findings uncovered in our newly released independent research offer some suggestions for why this is happening. They also highlight some best practice principles that could reduce the pressure while helping achieve positive organisational change.
Public cloud adoption strategies have matured in recent years, and many organisations are taking a longer-term view that aligns cloud strategy and core business objectives. For example, almost a third of respondents measure the success of their cloud transformation projects based on productivity increases, enhanced security, and better user experience.
However, our data suggests that a quarter of IT decision-makers still migrate to public cloud environments primarily to reduce operational costs. Almost 30% want to minimise capital investment, and 32% cite improved flexibility (often a euphemism for cost savings).
Map out your journey
Unfortunately, if the case for public cloud adoption is based principally on cost savings, those delivering the project are more likely to face pressure from the outset. That’s not to say public cloud adoption can’t or won’t deliver cost savings; it’s just that there’s a lot of work to do in terms of planning and implementation to get to that point.
Application modernisation, for example, is central to realising savings but can be difficult to achieve and take far longer than expected. In addition, applications and data scheduled for migration might be more challenging to find than anticipated, causing project delays.
Developing a well-thought-out plan at the outset, agreeing on outcomes, and setting realistic milestones will help considerably—as will clear communications to key stakeholders and the wider organisation during the project.
We often talk about cloud migration as a journey. Extending that metaphor, try to keep those travelling with you comfortable, informed and (most importantly) on board. This will help manage short and long-term expectations—including a realistic point at which the project could deliver savings and efficiencies. With 20% of respondents saying that board-level resistance and cultural challenges were barriers to cloud adoption, it’s certainly advice that’s worth considering.
Cloud and business strategy in alignment
To be successful, an organisation’s cloud adoption strategy should be an extension of its business strategy. So, it’s reassuring that our research shows some alignment between the top objective for the next 12 months (improving security) and the top driver for cloud adoption (security).
Our data also shows that some respondents are migrating to public cloud environments to access innovative technology and adopt new applications that require a hosted environment. These are mature and rational drivers with realistic outcomes—and will play a major part in improving business efficiency, customer experience, and staff productivity.
It’s likely that public cloud migration projects such as these will have well-thought-out long-term goals. As a result, IT decision-makers will probably experience less pressure to deliver immediate short-term outcomes since everyone will understand the timeframe at the outset, and the ultimate goal should be achievable.
Countering a shortage of cloud talent
According to our research, almost eight out of 10 UK SMEs have experienced unexpected costs or cloud-related budget overruns. This is bound to increase stress and ramp up the pressure to rush implementations. Our data suggests it’s more common in the public than private sector—and most common of all in government cloud projects. Indeed, over 90% of government sector-related SMEs experienced unexpected costs or budget overruns—as did almost 85% of SMEs working in the education sector.
Organisations implementing their own public cloud migrations can be more prone to unexpected costs—especially if they opt for a basic ‘lift-and-shift’ approach. One way to counter this is to consider a cloud-native strategy from the outset. Exploring operating model changes, regularly reviewing architecture and automating critical processes could also help keep costs under control.
This can be a big task for some teams—especially if, like almost 20% of respondents, they’re concerned that a lack of skills could be a barrier to cloud adoption. IT decision-makers are doing their best to address this issue, but our research found that three-quarters have faced challenges recruiting cloud talent.
Nearly 60% have implemented initiatives to upskill the existing workforce, while half have outsourced to third parties such as managed service providers. Although this route might look more expensive on paper, it will ultimately save money, help align business and cloud strategy and maintain a strong security posture.
It’s not too late to change course
As a closing thought, it’s worth considering that public cloud adoption is not a one-way journey. Some businesses find applications can’t or don’t scale in their new environment. This leads them to wonder if they might be better suited to a different ecosystem—perhaps returning them to on-premises infrastructure and/or private or managed data centres. Perhaps this explains the rise in hybrid cloud adoption and why, according to our research, hybrid cloud environments are now twice as popular as public cloud ones.
While it’s preferable to write and gain sign-off on a public cloud adoption strategy at the start of the project, it’s never too late to draft one—and doing so might just help reduce stress levels, realign goals, support momentum, and keep everyone on board.
The full version of Six Degrees’ UK SME Cloud Intelligence Report 2024 can be downloaded here.
Chris Jackson is chief product and technology officer at Six Degrees. He is responsible for building cross-functional teams across the company and ensuring that technology is fully integrated into strategic business goals. In addition, Chris leads areas such as product strategy and customer experience. Prior to this, Chris held similar roles at Insendi and Thomas International and was director for cloud platforms at Pearson.