Cloud – it’s all about the apps
- Posted on October 12, 2016
A few years ago, a company decided that they wanted to move nearly 3,000 applications into the cloud. It was a complex project with a tight deadline. And unfortunately, it didn’t turn out well. The project ran about 25% over budget, requiring the company to overspend by $46 million and have to revisit the application rationalization approach and disposition for many of their applications.
Don’t Be One of The 70%
That’s an eye-popping example, but hardly a unique one. Gartner reports that 70% of companies that adopt the cloud are not seeing the value that they originally expected. Corporations clearly want to save money but in many cases end up spending more than they did with their on premises environments. Previous blogs in this series have discussed how a company’s approach to cloud infrastructure and operations can affect its costs. But there’s another major consideration that can make the difference between success and failure in the cloud: applications. Applications are at the core of what runs the business. They’re the mechanisms that deliver mission-critical processes to the enterprise and its lines of business.
Every company has legacy applications that can take advantage of the cloud – for lower cost and greater scalability—if the right applications are addressed in the right order for that enterprise. That’s the way to reduce, rather than increase, costs—and to make that all-important business case. Applications aren’t the only elements you need to get right for cloud adoption to succeed, but get applications wrong and failure is virtually inevitable.
Take the company that overspent by $46 million. It moved all of its applications in a lift-and-shift process, failing to distinguish which applications should be moved first, and which modernization paths would enable it to take full advantage of platform services beyond just the compute, storage and networking elements of any cloud-based infrastructure. All of your applications don’t belong in the cloud, at least not in the first phase of a cloud journey.
Before companies begin moving applications to the cloud, they would generally benefit from an in-depth process of portfolio rationalization [CLICK TO TWEET]. Some older applications might be retired and other non-differentiated applications might be handled with proven software as a service applications for mail, collaboration, time reporting and other general function processes. More significant applications would likely justify greater investment. We help clients with this analysis via our Cloud Transformation framework and workshop, which utilizes Avanade’s Application Roadmap to the Cloud (ARC) tool.
Avanade’s approach and toolset quickly identify the applications to move first in order to align to your business goals for adopting cloud so you get the maximum value from the cloud--and avoid the dissatisfaction of so many cloud other adopters.
Next time we’ll look at some examples of applications suited to driving costs down vs increasing agility, as well as how to how to make your first steps. But in the meantime, why not check out our video below that covers accelerated application migration to the cloud to see how it works.