Six Key Considerations for Reviewing Your Cloud Estate

Recently, we’ve seen a string of repatriations from public cloud services back to on-premises infrastructure. This shift is largely driven by escalating costs and the inefficiencies of poorly optimised workloads. The rush to the cloud, spurred by the pandemic, left many companies with hastily implemented solutions that are now ripe for reassessment.

A study by 451 Research found that 84% of organisations that had moved workloads to the public cloud have now brought some of them back on-premise due to security concerns (36%) and cost and performance issues (16%).

With Chief Financial Officers (CFOs) increasingly demanding reductions in cloud expenditure, IT departments are under pressure to scrutinise and streamline their cloud strategies.

As the focus shifts towards enabling the next wave of digital transformation, particularly in AI, it’s crucial to ensure that your cloud strategies are not only cost-effective but also aligned with future organisational goals.

The Importance of an Effective Cloud Strategy

According to Accenture, 89% of companies are now following a multi-cloud strategy, partnering with at least two hyperscalers. However, the question remains: are these strategies delivering the desired results?

Here are six key considerations for reviewing your IT estate and working out how you’re your workloads perform in their current cloud configurations. From here, it's possible to devise a successful cloud strategy that will help address current needs and future aspirations.

1. Scalability

The primary advantage of cloud computing is scalability. However, not all workloads require the same level of flexibility. Identifying which of your workloads need to scale rapidly and which do not is crucial. Public clouds provide unparalleled scalability for dynamic workloads, but for static or less variable tasks, private clouds or on-premise solutions might be more appropriate. By placing the right workload in the right environment, businesses can optimise performance and cost-efficiency.

2. Cost management

Predictable cloud costs are a cornerstone of an effective strategy. The allure of pay-as-you-go models can quickly turn into a financial burden if not managed properly. Implementing a cost management strategy that includes regular monitoring, cost forecasting, and adopting reserved instances or savings plans can help control your expenditure. Avoiding large upfront investments and maintaining flexibility in cost structures will ensure that your cloud services remain a financial asset rather than a liability.

3. Security and compliance

Security and compliance are non-negotiable elements of any cloud strategy. Public and private clouds both offer advanced security measures and compliance features to protect sensitive data and meet regulatory requirements. Therefore, utilising a cloud providers' tools can enhance your security posture and simplify compliance management. However, it is essential to regularly review and update security practices, ensuring they are robust and align with current threats and regulations.

4. Disaster recovery

A disaster recovery plan is only as good as its last test. Regular testing of your disaster recovery plans ensures that they work when needed. Public and private cloud platforms offer built-in disaster recovery options that enhance resilience and minimise downtime. By integrating these options into your overall cloud strategy, you can safeguard against data loss and maintain operational continuity.

5. Innovation and agility

The pace of technological change requires businesses to be agile and innovative. Cloud services that enable rapid deployment and modernisation of applications are vital for maintaining competitiveness. The right cloud environment can foster an innovative culture, allowing for quick experimentation and iteration. This agility can be a significant competitive advantage, enabling you to respond swiftly to market changes and customer demands.

6. Global reach

Latency can be a critical issue, particularly for businesses operating across multiple regions. Leveraging the global data centres of public cloud providers ensures low-latency access, regardless of geographic location. This global reach is particularly important for businesses with a worldwide customer base, as it ensures a consistent and responsive user experience. Strategically utilising these data centres can help you overcome latency challenges and expand your global footprint.

Embracing a hybrid cloud approach

The push towards AI and other advanced technologies is intensifying scrutiny of cloud costs. As businesses prepare for significant investments in AI, ensuring that your cloud infrastructure is optimised for cost and performance becomes even more critical. According to a report by McKinsey, companies investing in AI often see an initial spike in infrastructure costs, making it imperative to have a robust and efficient cloud strategy to support these new workloads.

There is no one-size-fits-all solution when it comes to cloud strategy. Each organisation’s needs are unique, and the optimal approach will vary accordingly, therefore, a hybrid cloud conversation is essential. By combining public and private cloud solutions with on-premise infrastructure, you can unlock greater value from your technology investments.

A hybrid cloud strategy allows for greater flexibility, scalability, and cost management, enabling you to place the right workloads in the right environments. This approach not only enhances performance and efficiency but also supports innovation and global reach.

As technology evolves, so must cloud strategies. A well-considered hybrid cloud strategy will be key to achieving sustainable growth and maintaining a competitive edge.

Create a future-ready cloud strategy

By addressing these six key considerations, your business can develop a cloud strategy that is both resilient and adaptable. This strategic approach will not only meet current operational needs but also pave the way for future digital transformation initiatives such as the integration of AI technologies and the higher compute power they will need. As CFOs and IT departments collaborate to optimise cloud expenditures, a balanced and thoughtful approach will ensure that cloud investments continue to drive business success.