Thought Leadership
Adopting the cloud is an important business strategy to succeed and create value in today’s digital world. According to a recent McKinsey survey, 95% of European companies say they are benefiting from the cloud.
However, it is important to consider whether the value realized is simply IT improvements and the resulting cost savings or whether it is based on higher-value cloud use cases that leverage new technologies. However, the study also highlights that companies that effectively integrate AI (generative AI) into their transformations have a significantly higher return on investment (ROI) than their competitors. This is up to seven times higher for each migrated business area. A successful cloud implementation must therefore go beyond the technology and should define specific business objectives as a success factor.
Key figures for a solid cloud strategy
A well-planned cloud strategy must use a number of different metrics to measure success. These include strategic management, cost optimization and business agility as well as resilience, business unit adoption and various capabilities that serve as the foundation for cloud adoption.
Strategic management means that cloud adoption is aligned with business objectives and there is a governance framework that links technical decisions to business outcomes. Cost optimization can be achieved by shifting capital to operational costs, initiating scalable resource allocation and achieving faster solution delivery. Companies should control metrics such as cost per use to maximize the return on cloud investments. Ideally, this will lead to lower IT spend and free up resources for strategic projects. The third metric of business agility assesses the company’s ability to adapt to dynamic market changes. Cloud services can play a crucial role in accelerating the market launch of new products and thus promote innovation. The performance and scalability of cloud infrastructures can be evaluated based on application uptime and the ability to scale on demand – enabling seamless operations and improved customer experiences.
Another important component regarding the cloud infrastructure: it must recover seamlessly from setbacks. In the new era of cloud resilience, security is a priority from the outset, through continuous operations and appropriate security measures against cyber threats. These include robust access controls, data encryption and measures to detect threats quickly. Security incidents can also be tracked through audits to ensure data security and compliance. Thanks to a modernized IT infrastructure, automated infrastructure management and modern network solutions, resilience also increases. Technologies that allow flexible workloads and optimize the use of resources significantly increase operational efficiency.
An effective cloud strategy should aim to be implemented in all areas of the company. The right cloud technology can be used to drive innovation and improve the customer experience. Cloud adoption drives revenue growth through new offerings, increases customer satisfaction through faster interactions and enables employees to collaborate more effectively with modern and flexible tools. The focus should be on developing technical skills, introducing agile methods and modernizing the IT infrastructure. This will support seamless integration with cloud services. Automation of infrastructure configurations and the management of APIs can be integrated in a second step. In addition, DevOps principles and automated deployments promote collaboration – supported by continuous integration and deployment pipelines. When companies prioritize these metrics, they gain a strategic advantage and ensure their long-term success.
Cloud: benefits and challenges
The switch to cloud-based operation requires a two-pronged strategy. To optimize costs, companies must plan the required resources accordingly and implement automatic scaling. Otherwise, accurately predicting demand and navigating complex cloud pricing structures is complicated. Even though resources can be scaled through containerization, serverless computing and infrastructure automation, there are a number of other challenges. These include managing complex applications or ensuring the security of data, applications and networks. Dependence on one provider can also lead to problems with the scalability of cloud resources. Companies must therefore continuously monitor and adapt their strategies to solve these challenges.
Develop a cloud governance framework
An effective cloud strategy aligns business objectives with a strong governance framework. This focuses on security, compliance and cost optimization. At the same time, it must also be flexible enough to allow for growth. Testing of non-critical applications helps to refine this strategy before major migrations – and thus achieve the greatest possible benefits. Companies must first assess their maturity model to identify the segments that offer the highest potential for improvement. This also includes optimizing the cloud mix, for example by using different cloud providers or different cost structures. Compliance guidelines should also be updated regularly. In general, continuous improvement should be part of the corporate culture, which also includes the cloud architecture. This also means that managers should be actively involved in planning the cloud vision and driving it forward. This is the only way for employees to feel well informed and supported in the transition to a digital-first era.
Cloud technology has changed the way companies offer services to their customers. The aim is to create a personalized, scalable interaction experience in real time. This enables organizations to offer seamless experiences across multiple channels. At the same time, they ensure that customers receive the same service whether they interact online, via mobile apps or in a store.
Thanks to cloud-based data analysis, companies gain valuable insights into customer behavior and preferences. This enables them to offer proactive support and promote long-term loyalty. For example, Bpost (Belgium Post Group) has used cloud solutions and technologies to improve customer experience, employee efficiency and overall operations. By partnering with a cloud-based solution provider, Bpost customers are able to choose alternative delivery locations, while employees benefit from real-time data and feedback for better delivery and route planning.
Conclusion: The cloud combines economic and technological advantages
The benefits of cloud computing are well known. European companies are focusing on achieving business benefits such as greater operational efficiency and ensuring a faster time to market for products and services. Higher customer satisfaction and better business results are other key criteria. Organizations that align their business goals and cloud strategies will achieve tangible results and be able to generate tangible business value in the future.
