What drives your Cloud Strategy?
Are you investing in cloud for innovation reasons or are you migrating workloads to the public cloud in an attempt to save costs? Companies are investing in cloud technology for a number of reasons; while some organizations may want to drive operational costs down by leveraging cloud automation capabilities; other initiatives may be focused on increasing the organizations innovative capabilities. In short: are your investments focused on driving the top line revenue via innovation or are you addressing the bottom line via cost savings?
Understanding the Strategic Drivers for the organizations cloud strategy should be an integral part of the cloud strategy. The Strategic Business drivers should linked to the strategic elements as identified in the Strategy Map.
Let’s have a look at some examples for top line and bottom line strategic drivers;
Identifying Strategic Drivers
The Strategic Drivers are depending on your organizations ICT Vision. While the above examples might give an adequate first impression it is important to identify the strategic drivers for your specific organization context.
Which Application Migrations are tactical and which are not?
When the Strategic Drivers are identified it is possible to map all potential cloud migrations (repurchase, refactor, replatform, relocate) to the Strategic Drivers. Does a migration address one or more of the Strategic Drivers than it may be considered as a Tactical Cloud Migration. Tactical Cloud Migrations (or developments) should be prioritized over migrations with lower impact. Migrations that tick none of the boxes might be required to facilitate the closing of a data center or an outsourcing contract that is being transferred to a new supplier.
For traditional organizations it is realistic to conclude that the majority of the cloud migrations address the bottom line and only a few cloud migrations are focused on the top line. When the organizations Cloud Maturity level rises you may expect to see more and more top line focused initiatives.