Cloud Strategy: Definition, Functions, & Steps to Planning It

Cloud Strategy
basic strategy

A cloud strategy is a clear statement of how the organization should use the cloud. It serves as a transitional document between a high-level company strategy and a plan to migrate to or utilize the cloud. A cloud strategy is distinct from a plan for migration or use of the cloud. Read further for more information on cloud consultants and multiple and hybrid cloud strategies.

Cloud Strategy 

The plan a business uses to host its IT infrastructure in a cloud environment is known as a cloud strategy. Cloud strategies aid in ensuring the efficient operation of the infrastructure, workloads, and applications hosted in the cloud by detailing the cloud’s architecture, development plans, and governance model.

  • A cloud strategy that specifies
  • Functionality at a cost
  • Service standards

Steps on How to Plan a Cloud Strategy 

Cloud strategies are now essential for giving a business offering cloud services a competitive edge. Different cloud service providers might have further specifications and be able to combat bad cloud computing habits as well. However, they can all use these six steps to develop a cloud approach that will be successful for them.

#1. Choose Your Business’s Goals.

The first and most important stage in developing a cloud approach is identifying your company’s goals. Once the company’s goals are established, it can use those goals to determine its capabilities and set reasonable goals. Furthermore, the objectives and benchmarks that a company or enterprise must meet might even aid in coordinating future cloud initiatives.

#2. Evaluation of The IT Architecture

While paying close attention to the technical components of creating a cloud strategy is crucial, one must disregard the architecture. Without incorporating the business architecture into the technical implementation roadmap, a cloud computing system cannot achieve the intended business objectives. Therefore, you must focus on the analytical part of the company’s IT infrastructure to develop and revise the roadmap for perfect cloud implementation.

#3. Analysis of Future States

The capacity of a cloud strategy to offer long-term benefits and growth to a cloud firm is one of the reasons it is crucial. In order to create a vision that has a favorable impact on the business processes associated with cloud deployment, a future state analysis is crucial. Future state analyses must take account authentication, cloud security, and user identification secrecy into account.

#4. Fit-Gap Evaluation

Cloud services can find any holes or problems that might impact them using fit-gap analysis. To analyze and simplify the intended cloud strategy’s secure and reliable implementation, a thorough analysis of the cloud investment and architectural planning is necessary.

#5. Risk Evaluation

After the business goals have been established and all fit-gap and future state evaluations have been taken into account, the firm must evaluate the risk associated with implementing its cloud strategy. A risk-aware cloud strategy could potentially determine the success or failure of the cloud business. 

#6. Plan For Implementation

A cloud strategy gives users high-quality, trustworthy cloud computing services to benefit from and gain an edge over the competition. An integrated cloud strategy requires a management system that efficiently organizes and distributes cloud services.

Multiple Cloud Strategy 

Utilizing two or more cloud computing services from any number of cloud providers while extending and integrating them with a company’s private cloud is known as a multiple cloud strategy. This typically involves using Infrastructure-as-a-Service (IaaS) services that are offered by many cloud vendors in addition to on-premises or private cloud infrastructure.

Many businesses use a multi-cloud approach to meet application needs, such as utilizing the capacity or features offered by a specific cloud provider or taking advantage of services available in a specific geography. Other businesses use multiple cloud strategies for redundancy or to avoid vendor lock-in.

Advantages of Multiple Cloud Strategy

  • Agility and Flexibility: Organizations using a multi-cloud strategy can handle the demands of a full application portfolio, overcome outdated infrastructure and constrained internal capacity, and achieve the agility and flexibility needed to compete in their markets. They can upgrade their application portfolio with cloud-specific services that are best for each application and move workloads methodically.
  • Multiple cloud efforts employ zero-trust cloud security to protect every cloud transaction and contact. Every major cloud provider offers cutting-edge physical security, but organizations employing cloud providers for IaaS platforms are still responsible for logical security.
  • Price Bargaining: Utilizing numerous cloud service providers gives businesses a pricing advantage because they may compete by offering IaaS services to a more informed clientele. Organizations can evaluate various service providers to get the best deal on each contract’s price and payment terms.
  • Utilizing several cloud providers lowers the risk of infrastructure failure or cyberattack. Businesses can quickly switch their workloads from one cloud provider to another, then switch them back after the issue has been resolved.

Multiple Cloud Strategy Difficulties

Although a multi-cloud strategy can provide enterprises with a range of cost-control, efficiency, and administration advantages, utilizing these advantages is not particularly simple. 

#1. Monetary

The transition to a multi-cloud setup is not cheap. The majority of firms incur significant costs when moving data across cloud providers and from the price of rewriting apps to work with and benefit from multi-cloud architecture. Optimizing data storage to function with different clouds raises these costs even further. 

#2. Technical 

Since most businesses lack in-house advanced technical competence, setting up a multi-cloud architecture is a challenging procedure. As a result, hiring outside professionals to handle the setup is necessary.  It’s not a simple undertaking to manage several clouds’ various features while managing massive amounts of data. When converting to multi-cloud, every firm must overcome a number of technical obstacles.

#3. Safety

Securing data privacy and security becomes extremely difficult if many cloud providers handle and share your organization’s data and information. This is complicated by the possibility of disparate security and data privacy rules among various cloud service providers. 

Hybrid Cloud Strategy 

Organizations choose which data and apps should reside on which components of a hybrid cloud infrastructure using a hybrid cloud approach. What goes on in public cloud infrastructure and what goes on in private cloud infrastructure are simply defined by hybrid cloud strategies.

A hybrid cloud strategy, seen from a higher perspective, combines a private cloud with one or more public cloud providers, allowing them to share and move applications and data through a wide area network (WAN).

Challenges Faced by Hybrid Cloud Strategy 

When creating a hybrid cloud strategy, there are some obstacles to overcome. To identify risks and reveal hidden value for the business, organizations should begin with a comprehensive audit of their current apps and data.

#1. Cloud Cost Uncertainty

Integrating private and public cloud operations may incur unexpected costs, including extra software licenses, underutilized virtual machines, and data outflow. To reduce CSP expenses and maximize performance and cost-effectiveness, enterprises should design data flows and application usage for hybrid cloud strategies.

#2. Challenges With Scalability

Private cloud apps secured by on-premises firewalls are hard to grow, which is one reason to choose a hybrid solution. Design apps for cloud bursting to the public cloud to use public cloud resources when necessary.

#3. There Are No Magic Solutions.

To facilitate a hybrid cloud strategy, organizations need to discover the appropriate technologies and platforms. In the majority of situations, both for on-premises infrastructure and the public cloud, there will be various vendors, integrations, and technologies used. Instead of attempting to fit every application into the same tool set, choose the appropriate tools for each use case.

Advantages of a Hybrid Cloud Strategy 

Here are the results of a study conducted by the international technology company Cloudnexion that outlines the top five advantages of using a hybrid cloud approach.

  • Data protection. Backup, recovery, and enterprise data protection were the first practical use cases for the public cloud. Businesses can employ their own on-site data protection solutions or outsource data security to managed service providers who handle backup, snapshots, BC/DR, and recovery for a set charge, ensuring HIPAA, PCI, and GDPR compliance.
  • Business nimbleness. The IT catchphrase has changed over the last ten years from “do more with less” to “do everything with nothing.” When introducing a new analytics application, a company’s ability to prototype and launch new apps or improve the mobile app user experience may determine its success.
  • Scalability. Holiday shoppers, Oprah, and successful new launches may boost demand for even the most established enterprises. Hybrid clouds can eliminate resource usage estimates by absorbing surges with public cloud resources that can automatically spin up and down as demand changes.

Cloud Strategy Consultant 

A cloud consultant works with the business to identify its goals and objectives, assess its current IT infrastructure and capabilities, and develop a customized plan for utilizing cloud services to achieve those goals. This frequently involves analyzing the company’s present systems and data, doing cost-benefit analyses, and developing recommendations for the appropriate cloud deployment models and platforms. The implementation of the strategy, including cloud migration, system integration, ongoing support, and maintenance, may also receive assistance from the consultant. In the end, the goal of cloud strategy consulting is to help businesses realize the advantages of cloud computing while avoiding the costs and dangers of adoption.

Skills For Cloud Strategy Consultants

The following are some of the key competencies a cloud strategy consultant should have:

  • platform and cloud deployment model expertise To provide a business with the best solution, a cloud strategy consultant must comprehend public, private, and hybrid clouds.
  • knowledge of integrating and migrating to the cloud. Businesses should be able to plan and execute a successful cloud migration with the assistance of a cloud strategy expert. Additionally, they ought to be familiar with the procedures for migrating data and systems to the cloud.
  • For a cloud strategy consultant to work with businesses and help them understand and implement their cloud plans, they must have strong interpersonal and communication skills. These skills and technological competence ought to go hand in hand.

What Is an Example of a Cloud Strategy?

Netflix is one example of a cloud strategy. In order to transition Netflix’s applications to the microservices architecture and to Amazon Web Services, it took roughly seven years. Compared to on-premise resource management, the restructured application structure increased service availability and decreased IT expenses.

How Do You Develop a Cloud Strategy? 

Four steps to developing your cloud strategy:

  • Assess the present state of cloud and IT capabilities in terms of people, procedures, and technology. Analyze the architecture and operational readiness.
  • Define your ideal IT environment in the desired state. Where can you make changes to your present situation?
  • Define the gaps between the capabilities of the existing state and the ideal state. Recognize the essential cloud adoption competencies needed to meet corporate goals.
  • Initiatives: Prioritize a list of tasks and projects based on the areas that, when filled, would yield the desired company strategy.

Why Do I Need a Cloud Strategy? 

The importance of and need for a cloud strategy document is to serve as a roadmap for the company as it uses or migrates to cloud services, balancing organizational benefits with effective risk management.

What Are 3 Examples of a Public Cloud? 

One of the most widely utilized IT infrastructures for computation and storage nowadays is public cloud solutions. Google Workspace, Amazon Web Services (AWS), Microsoft products like Microsoft 365 and Azure, as well as streaming services like Netflix, are some of the most popular examples.

What Is a Cloud Strategy Roadmap? 

A cloud strategy roadmap is a carefully planned strategy meant to guarantee that your organization has determined what it needs from its cloud transition and how it will be accomplished. Before attempting any migration, it’s smart for IT teams and stakeholders to work together and set goals.

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