Leading enterprises have long found value in the cloud. Worldwide, companies have invested in cloud services at a 10.7% compound annual growth rate since 2014, and IDC predicts nearly $500 billion will be spent on public-cloud services alone in 2023. Yet the nature of these investments has begun to change, presenting new challenges for enterprises that seek to develop cloud-native operations and leverage the “Cloud 2.0” opportunities that lie ahead.
Much of the first generation of cloud implementations were “lift and shift” migrations, with companies moving on-premise or mainframe services to the cloud for simple efficiency gains and cost reductions. Those cloud-based values still hold true. Increasingly, however, companies have realized that embracing the cloud at a deeper level, leveraging it to drive their larger digital transformation, can yield far greater benefits.
At the same time, not all applications are appropriate, necessary or cost efficient to move to the public cloud. Many companies are realizing that hybrid cloud strategies will be the reality to get the best value from their resources. Cloud strategies require thorough application portfolio assessment, which rationalizes the portfolio and targets resources at the applications that drive business value. This is Cloud 2.0.
Data from Forrester shows that 86% of business and IT leaders plan to continue investing in the cloud to contribute to their digital growth. Such cloud-enabled growth has been a revelation. However, driving and scaling cloud native is complicated and introduces unique business and operational challenges.
For digital businesses, these challenges often stem from trying to integrate disparate cloud architectures across heterogenous environments. Porting an application or service from a private cloud to a public cloud, or across managed providers, can introduce errors and management challenges. In addition, different parts of the application landscape may be optimized for a specific vendor, making the prospect of portability difficult or, in some cases, unrealistic. No matter how advanced a service or qualified a team, businesses will struggle to realize value and continuity across the cloud if their solution is locked into a single vendor.
Cloud 2.0 also requires companies to change the way they think about organizing their technology organizations. Companies have struggled to navigate balancing their investments in infrastructure and applications. These have historically been separate and siloed exercises, but they’re starting to converge, a difficult shift for many enterprises to make. Wipro has anticipated this convergence of infrastructure and applications and has been advising clients on it for some time. This foresight has guided our creation of transformation platforms to help businesses build, run and manage their business with a Cloud 2.0 mindset. VMware has a similar vision, culminating in the launch of its new Tanzu platform that integrates infrastructure and applications under a single, open-source roof.
To build a cloud-native business, companies must commit to a comprehensive IT renovation, adopt an Agile/DevOps approach, and simplify key processes through automation and containerization. With the infrastructure in place, companies must create a new cloud layer upon which to run the applications. This layer must integrate across a multi-cloud architecture and enable IT to efficiently meet business demands. Finally, the enterprise should seek to manage its Kubernetes clusters from a single, centrally managed platform to maintain visibility.
Leveraging the full power of the cloud, businesses can realize far greater benefits than simple cost reductions and efficiency gains. The cloud can deliver so much more – for business as well as customers – if companies understand the challenges that lie ahead and learn how to successfully transition to cloud-native models.
This journey can be accelerated if companies find the right partners. Wipro has helped hundreds of global enterprises navigate their transformation and develop cloud-native offerings. We’re also the proud system integrator launch partner for VMware’s Tanzu platform, an innovative and integrated solution for companies looking to fully embrace the cloud. Together, Wipro and VMware offer a comprehensive system to help companies design, build and achieve their Cloud 2.0 future.