Gartner has said that worldwide end-user spending on public cloud services is forecast to grow 20.7% to a total of US$ 591.8 billion in 2023 - up from US$ 490.3 billion in 2022 - according to its latest forecast. This is higher than the 18.8% growth forecast for 2022.
These statistics and numbers are quickly on the rise across the IT industry. The benefits of moving to the cloud have never been more prominent and understandably so. However, do people understand what a total shift from on-premises data centers means and is it right for every organization?
The age of the cloud began nearly a decade ago as organizations in every sector saw the value of cloud strategies and pushed toward them. This was an attempt to free businesses from the burden of on-premises data centers to meet all their network, computing, and storage needs in a simpler way – which is what introduced the “cloud-first” strategy.
What Is Cloud-First?
A “cloud-first” strategy meant that businesses would willingly - or through obligation by their organization – look towards cloud-based solutions before considering a private cloud or on-premises infrastructure.
In the last decade, many organizations have and continue to find themselves quickly migrating their existing processes, workloads, data, and applications to the cloud. This seemed to be the most affordable, flexible, efficient, and agile strategy to meet the needs of a growing business.
However, many of those same organizations are now finding out that the impulsive move towards a cloud-first strategy is not as helpful as it seemed. For many, in the long run, the costs of a quick, full-on migration seem to outweigh its benefits.
Analysts from Gartner have said in 2021 that more than 85% of organizations will embrace a cloud-first principle by 2025 and will not be able to fully execute their digital strategies without the use of cloud-native architectures and technologies.
These statistics came about just as businesses started to jump on the cloud-first bandwagon – which was not without reason. The cloud is the future but cloud-first options are a huge step for any organization.
Cloud strategies require careful consideration and an understanding of specific business goals. Your origination needs to find out what is most important for the business – basing your solution on speed, flexibility, security, storage, or any other critical element.
Those who have had to rethink the cloud-first route have usually done so due to the advanced systems that have to be adopted after migration. While cloud migration has several benefits, this sudden change is not always easy when legacy applications are being run in an unsupported cloud environment.
Businesses need to figure out if their needs will be fulfilled through cloud usage, on-premises facilities, or the hybrid cloud route. These questions form a cloud-smart strategy.
What Is a Cloud-Smart Strategy?
A cloud-smart strategy matches business systems to the environment best suited to meet their needs. The way an organization has developed and managed its systems will require tailored solutions - from its software and applications to storage and backup solutions.
Suzette Ken, the US Federal CIO has said that “cloud-smart technological policies should fit the mission of the organization as well as the intended purpose of the software.” She states that some organizations may continue using traditional on-site infrastructure and that it may be “more appropriate” to maintain on-premises security tools - such as firewalls and virus protection.”
This shows the different ways a cloud-smart strategy can look to each organization. It is unique to your business as a whole, not just suited to one need.
View Webinar on Cloud-Smart Strategies
The cloud has given us many advantages in mobility, elasticity, and agility for innovating business processes. Cloud computing technology has become crucial in digital transformation. It has allowed organizations to quickly update infrastructure while lowering operation and maintenance costs.
However, moving from traditional IT architecture to the cloud requires expertise in planning, migration, best practices, and expense management. Many organizations want the benefits of cloud computing yet hesitate due to the investments and skills needed to maintain it.
Design a lightweight hybrid cloud based on easily managed technology to provide your customers with simplified services using the Sangfor Webinar: Start Your Simple and Worry-Free Cloud Journey, No Expertise Needed.
Gartner on Cloud Smart Strategy
According to Gartner, 60% of organizations that have adopted a cloud-first strategy will replace it with a cloud-smart strategy by 2023. Gartner's recent guideline titled "The Cloud Strategy Cookbook 2021" has outlined the approach to creating a cloud strategy that connects business strategy to cloud implementation and migration.
Henrique Cecci, Gartner analyst and compiler of Gartner’s 2020 paper titled “Move From Cloud First to Cloud Smart to Improve Cloud Journey Success” said that “organizations pursuing a cloud-first strategy often find this approach evolving into a cloud-only approach despite some use cases being a poor fit for the cloud.”
In the paper, Gartner also explores many of the key challenges faced by organizations as well as best practices for cloud strategic planning.
The goal of a cloud-smart journey is to ensure that the adoption of cloud initiatives aligns with each organization’s priorities and delivers value - this is the effect of successful cloud adoption. The journey is mapped out as follows:
- Close the Gap Between Cloud Expectations and Reality
- Create an Automated Governance Strategy
- Get Cloud-Smart “FEVER”: Faster, Easier, Valuable, Efficient, and Repeat
- Focus on Simplicity with KISS (Keep It Simple and Safe)
- Reflect on Your Organization’s Unique Context and Cloud Realities
These steps start with understanding an organization’s team and its abilities. Focusing on what the expected goals are from shifting to the cloud and comparing that to what the shift can provide.
Aligning your cloud strategy with the overall business strategy and growth needed will help you successfully embark on this journey.
A smart-cloud strategy ensures that the expected outcome is realistic while still being successful. By outlining where the business is and where it needs to go, the steps of what it needs to get there will follow easily.
Organizations interested in cloud strategies need to understand what the process entails - from compliance and workload prioritization to risk management and proximity factors. This includes the investments the strategy will need and the areas it will improve on for your specific business.
Cecci also went on to explain that I&O leaders need to promote cloud initiatives that align with their organizations as well as local cloud conditions - such as proximity and regulatory factors.
The Benefits of Cloud-Smart vs Cloud-First - Which Strategy to Choose?
Simply put, there is no truly right or wrong choice. Cloud-first and cloud-smart initiatives both have many benefits depending on the needs of your organization. Cloud-smart is the more long-term solution. It allows you to customize and scale infrastructure according to your business’s growth and needs.
Several factors need to be considered when comparing the two solutions including cost, adaptability, sustainable application development, and more. We compare some of the main elements of the two strategies:
| Cloud First | Cloud Smart |
|---|---|
| Access to unlimited resources such as software and platforms. | Access to managed cloud services and platforms such as Sangfor’s Cloud Platform without complete reliance on external vendors. All the support needed is on standby. |
| Modernization of all systems that will allow for easy updates and integration in the future. | Resource allocation to different channels only as necessary. Ensures that you have a clear understanding of expenditure and associated benefits. |
| Lower infrastructure and maintenance costs off the bat. | Freedom to decide which hardware is helping the business and is necessary. |
| Increased speed. | Ability to expand cloud usage as needed according to needs. |
| Simplified Managed Cloud Services that do not require in-house expertise; a vendor that will manage repairs, updates, and improvements for you. | Ability to explore hybrid cloud strategies according to business needs - shifting from on-premises to the cloud as necessary. |
Cloud-Smart Strategy Outlined By the White House
In 2018, the White House released a draft outlining its cloud-smart strategy after the US government confirmed its decision to make the move from cloud-first to cloud-smart. This came after the Obama administration announced the implementation of a Cloud-First Strategy in 2010. That continued to be the government’s cloud strategy until 2018.
Suzette Kent, the US Federal Chief Information Officer, said that to be cloud-smart, agencies need to consider how to use their current resources to maximize value. This is through retraining staff, enhancing security, and using best practices and shared knowledge.
She also stated that “Cloud-smart is about equipping agencies with the tools and knowledge they need to make these decisions for themselves - rather than a one-size-fits-all approach.”
Of course, in 2010, the cloud technology available was at its earliest phase of adoption. Since then, over a decade of research, developments, and experience have gone into and come out of the cloud.
Why You Should Move to Cloud Smart Strategy
As outlined above, there are several benefits to a cloud-smart strategy. However, the purpose of a cloud-smart strategy is to provide an environment that best meets your needs and that does not always mean a complete shift to the cloud.
Cloud-smart strategies allow businesses to take a holistic approach to management. Rather than using one platform to host all applications, storage, and processes - organizations can analyze each aspect and decide which will operate best on what platform.
This allows your organization to take full advantage of different aspects such as functionality, performance, agility, memory, security, and more on a per-need basis. Furthermore, a cloud-smart strategy allows businesses to shift from cloud to on-premises and vice-versa as the business requires.
While the cloud-smart method requires a team to assess the needs and mission of the organization, it will mean that you are constantly aligned with cloud best practices that are unique to your organization and will remain beneficial even in the long run.
With numerous hosts and vendors available for businesses that offer advanced cloud technology such as Sangfor's Managed Cloud Services and Hyper-Converged Infrastructure, businesses can relieve themselves of having to navigate cloud strategies on their own.
Sangfor’s Managed Cloud Service ensures all the flexibility of the public cloud with all the security and control of the private cloud – giving you the best of both worlds. The platform is simplified yet professional and the ideal choice for small to medium-sized enterprises.
While it may be difficult to understand which steps your team should follow in the pursuit of a cloud-smart strategy, Nutanix leader of corporate strategy and strategic partnerships, Sachin Chheda has recommended that organizations should look at their existing apps and IT services and categorize them according to what should be maintained, modernized, or retired.
After drawing up this list, Chheda went on to categorize the next steps that a business should take as follows:
- Remain: This involves allowing older applications to continue running as they are.
- Retire: This is simply turning off an application or replacing it with an entirely new cloud-native version.
- Rehost or re-platform: Try moving an application to the cloud - also called “lift and shift.”
- Refactor: Modify an existing application so it can support the cloud environment.
- Rewrite or rebuild: Modernize an application by rewriting it completely from scratch.
This simplifies the process and gives businesses a better understanding of what they should be assessing in their existing systems before choosing whether to migrate or not.
Success Stories on Cloud-Smart and Managed Cloud Strategies
Sangfor’s Managed Cloud Services is a platform built to provide businesses with the flexibility, agility, and unlimited resources that come with a public cloud combined with the security and immediate access that comes with a private cloud.
Our managed cloud services take away the burden of in-house data centers through the consolidation of data. The platform also removes the complete reliance of businesses on on-premises infrastructure.
Sangfor provides organizations with an enterprise hybrid cloud environment that gives them all the benefits of the cloud while still using their existing on-premises facilities as needed.
By offering Infrastructure-as-a-Service as well as Platform-as-a-Service, Sangfor lets businesses with different needs use a range of services that allow them to maximize the computing resources they have and the computing resources that they need.
From managed private cloud services to app modernization – which is rewriting or modifying your application to allow it to run on the cloud - Sangfor provides trusted and reliable services to small and large businesses alike.
Sangfor’s clients span across a wide range of sectors, with organizations and businesses of varying sizes - from governments to businesses in the manufacturing sector, and so much more. Below are some of the success stories from Sangfor clients who have made us of our cloud technology:
#1 - Malaysia’s Ministry of Rural Development (KPLB)
KPLB - or the Ministry of Rural Development - is the department responsible for overseeing rural, regional, and community developments and more in Malaysia. Sangfor proposed the use of its Hyper-Converged Infrastructure to improve the department’s IT infrastructure. This gave the KPLB a centralized platform which increased its performance – providing secure backups and fast and efficient integration.
For more details on how Sangfor helped Malaysia’s Ministry of Rural Development, please watch the below YouTube video:
#2 - Annotation AI (South Korea)
Established in 2020, Annotation AI is a South Korean-based AI utility management platform service company that provides high-accuracy data labeling automation to maximize work efficiency related to AI data pre-processing. Again, Sangfor’s Hyper-Converged Infrastructure was key to offering the organization a centralized platform with effective and efficient cloud services.
#3 - Global Business Power Corporation (Philippines)
Global Business Power Corporation (GBP) is a leading energy company in the Philippines. It produces high-quality, reliable, and affordable power supplies through five subsidiaries and ten power generation facilities nationwide. Sangfor developed a tailored solution for the company that drastically improved management and monitoring. It also allowed for impressive backup capabilities and improved performance.
Final thoughts on Cloud-Smart Strategy
A good cloud-smart strategy will consider the industry you’re in and how to work around your needs. However, your industry is still a micro-factor in the greater scheme of cloud strategies. Switching to a cloud-smart approach is about properly looking through every factor that could affect the systems you need for your organization.
Being aware of these smaller details will give you a realistic view of what the cloud can and cannot do for your organization. This helps you choose the right cloud option. The “work smart, not hard” phrase rings true here.
An effective cloud-smart strategy will save your business time and energy by delegating infrastructure on a per-needs basis - fueling digital transformation and your core business goals.
