What Value Does Cloud Bring To A Business?

Cyma's Note:

We have reached out to some of New Zealand’s biggest cloud experts, we wanted to know their thoughts on the cloud and how it can benefit NZ businesses. Today’s blog is from Saurabh Kulshrestha, a product manager at Revera, we asked him to give us his thoughts on the cloud and how it can bring value to NZ businesses. Cyma is proud to have such a creditable source as Saurabh contributing to our content. We would also like to thank Saurabh for his contribution, and if you would like to learn more about him and what he has to share, below is a link to his LinkedIn profile.

Saurabh Kulshrestha’s LinkedIn

 

Saurabh's Contribution:

We are living in the era of transformation. All the business across the world are talking about digital disruption and transformation. In recent years Cloud adoption has grown exponentially. Most of the players in the ecosystem are adopting and pushing Cloud computing in the market. The information available on why and how to move on Cloud is mind-boggling. Companies that are running their tech systems on-premise smoothly and efficiently have suddenly found themselves at a crossroad where they need to adopt Cloud to keep up with the pace of external environment. Even though such companies achieve the required outcomes using their traditional IT always. Such businesses need to understand what value Cloud will bring to their business?

 

Are We Becoming Digital

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We know the world is becoming increasingly digital. All the movies you used to rent can be watched on Netflix, there are no requirements to go to a bank, grocery shopping can be done online, and even one can do their master’s degree online. The new digital economy has drastically changed our day to day lives. To enable businesses with these new digital disciplines, businesses are focusing on how do they create and deliver service requiring IT to play a crucial role.

 Let's identify what value cloud brings to the business. We will identify how Cloud computing at its fundamental level can be thought as the new way of performing IT. IT has traditionally been delivering tactical systems for an organisation, e.g. a telephone system. Let’s categorise such system as tactical systems because it acts as a hygiene factor. Its presence does not add any revenue to the organisation’s top line however its absence creates a huge impact.

 

Tactical, Strategic or Existential?

So, let’s understand what other types of values Cloud can bring to the business. Cloudonomics categorise these values under three categories

  1. Tactical

  2. Strategic

  3. Existential

Strategic systems are those systems that will bring extra value to the business, e.g. recommendation engine on Amazon and Netflix are likely to increase the revenue to these companies and can be considered delivering strategic value.

Google, Facebook and Uber are some excellent examples where their fundamental IT systems are hosted on Cloud and are the reason for their existence. Without the scalability of Cloud, it would be impossible to imagine their business model.

 

Looking Forward

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So, when you are considering the case of moving into Cloud – what systems are you looking to move into the Cloud? Are you ready to modify your business model so that cloud not only brings the strategic value to your business but for some it can be a reason for your existence? Cloud adoption does not merely mean moving your IT systems on the cloud, to maximise the value of Cloud, a business needs to rethink their business model, their revenue streams and how do they do business.

All of this is not possible without focussed investments on Cloud project. Cloud adoption project discussions should not only be limited in the engineering communities within a business rather should be given a seat on the strategy table and in the boardroom.

*Reference

Weinman, J. (2012). Cloudonomics: The business value of cloud computing John Wiley & Sons.

 
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Cyma is proud to be the leader in cloud strategy in NZ. We have experts that can create strategic roadmaps and aligning business objectives with technology solutions.  If you’re looking for some advice in this space, let us know by filling out the form, and we will contact you soon.