How to create a strategic roadmap for cloud transformation

Everyone’s talking about the cloud - but actually, adoption is still relatively low. Research shows just 20-30% of enterprises are leveraging cloud technology at scale. The gap between potential and reality reflects the challenges businesses are facing on their adoption journey. 

With a clear, strategic transformation roadmap, though, it’s possible to bridge the gap. Here’s how. 
 

Why is cloud adoption so slow? 

Cloud technologies were first taken to market over a decade ago. But many C-suite executives, particularly in traditional or highly regulated sectors, are still hesitant to embrace them. Let's break down the key sticking points:

  • Identifying business value: The cloud offers near infinite possibility, but pinpointing the areas where it can create the most significant impact isn’t always easy. Without a clear understanding of the potential ROI, justifying the investment becomes difficult.
  • Technological complexity: Cloud isn’t a turnkey solution. It requires building a robust foundation to enable both automation and scalability. Businesses which lack this foundation will likely miss budget and delivery targets.
  • Operational transformation: Cloud technology requires a fundamental shift in how businesses operate. And change takes time; restructuring teams, upskilling employees, and adopting new ways of working can be a slow and arduous process. 

 

Understanding the silver lining

Despite initial adoption challenges, most enterprises will see clear benefits to cloud adoption. Research shows a successful cloud program can generate an average 180% ROI over seven to eight years. Key advantages include: 

  • Agility: With cloud technology, businesses can respond faster to market shifts and changing customer preferences. Resources can be provisioned and de-provisioned rapidly; this allows greater flexibility and adaptability.
  • Scalability: Cloud infrastructure can easily scale up or down to match the business need. Unlike more traditional IT infrastructure, this means there aren’t sizable upfront investments in hardware, so businesses only pay for what they use.
  • Innovation: The most cutting-edge software and services are - and will continue to be - based in the cloud. Teams can therefore innovate and experiment more quickly, ultimately reaching a business outcome sooner. 
  • Flexibility: As more employers favor remote work, cloud-based platforms can be accessed anywhere in the world. This gives employees more flexibility about where they work and allows employers to hire the best candidates from a global talent pool, regardless of where they are located. 

Forging the path ahead 

Aligning the C-suite around a clear strategic roadmap minimizes the risk of an unsuccessful transformation. That roadmap should include: 

  • Focus on business domains: Instead of a scattered approach, identify one or two key business areas where the cloud can deliver the most substantial impact. Start small, but start strategically.
  • Build a minimal foundation: Develop a core set of cloud capabilities that provide the necessary computational power, access to cloud services, and robust security. This foundation will serve as the launchpad for future expansion.
  • Rewire the operating model: Embrace an agile, product-centric operating model. This fosters faster development cycles and encourages collaboration between business and technology teams.
  • Prioritize talent: Invest in upskilling your existing workforce and attracting new talent with the skills needed to thrive in a cloud environment. The right people are crucial for success.
  • Embrace incremental change: Don't try to do everything at once. Start with small, manageable projects and gradually expand your cloud footprint. This allows for learning and adaptation along the way.

So what does this look like in practice? A large financial institution, for example, might begin by conducting an initial assessment of its current infrastructure and identifying the areas that could be migrated to the cloud. This includes a review of the organization's business objectives to identify any potential challenges.

The organization then develops a detailed plan for the migration. This includes selecting a cloud service provider, migrating data applications, and managing cloud-based operations. The plan also includes a timeline for the migration and a budget for the project.

Harnessing the gains from the cloud 

Enterprises able to get the roadmap right can unlock substantial gains in efficiency, innovation and ultimately growth. 126 out of 524 technology leaders at Fortune 1000 companies - 24% - told PwC that faster innovation and faster service/product delivery was the top way they measured the value of the cloud, followed by improved operational resiliency. Extensive research also confirms that businesses can expect to see a payback period of 1-3 years on average.

By focusing on clear business goals, building a solid technical foundation, adapting internal processes, investing in the right people, and making changes gradually, ambitious enterprises can harness the cloud's full potential. Talk to SBM to find out more.