What will cloud transformation look like in 2024? Regardless of the model and industry, it will almost certainly have a flavor of generative AI, and it will touch upon areas ranging from application modernization to cost optimization.
For the former, take a look at Gartner’s forecast for 2024, titled “Every strategy conversation needs to include GenAI.” “By 2027, GenAI tools will be used to interpret legacy business applications and create appropriate replacements, thereby reducing modernization costs by 70%,” analysts noted. Gartner added that the technology can help with modernization and refactoring initiatives as well as testing and validation.
Meanwhile, regarding the latter, Adrian Bradley, partner and head of cloud at KPMG, made a striking statement. Generative AI not only has “enormous potential to reduce costs and unlock value,” but it also “subtly changes the balance of power between cloud and non-cloud infrastructure providers.” Why? Because as more organizations require cloud-based generative AI services, public cloud becomes non-negotiable.
More broadly, however, Bradley noted that the future shape of the cloud will depend on how companies adapt to using AI services. Hyperscalers are innovating here at an astonishing pace. Hardly a week goes by without some sort of announcement from the largest cloud providers.take message Take, for example, reports of Microsoft forming a new team to build cheaper generative AI, or Google announcing a new UK data center just this week.
Those who understand the situation best and are fastest will succeed. But don’t forget the basics. “To be sure, the functional focus will remain…using the cloud to save back-office costs and increase front-office revenue and profits,” Bradley noted.
What this looks like in practice depends on your architectural approach and your budget. Rehosting or lift-and-shift are the simplest approaches, but don’t provide good long-term value. Refactoring or application modernization can provide high ROI and lower total cost of ownership, but the project requires significant time, money, and knowledge. Platform reimagining sits somewhere in between, adding cloud-native capabilities from automatic scaling to Infrastructure as Code (IaC) without a massive overhaul.
If this sounds like a headache, help is at hand. Pluralsight is an online education services provider and one of the sponsors of the upcoming TechForge event, a cloud transformation conference. Its products include a cloud maturity matrix to help organizations establish a cloud culture and achieve business goals. The company’s 2023 State of the Cloud report found that many companies are in the middle of the pack in terms of maturity; their focus on cloud services means strategy and results are overlooked.
As Erik Gross, principal consultant for engineering transformation at Pluralsight, and Luis Teixeira, vice president and head of CloudOps at Demandbase, outlined at the conference, many organizations’ strategies are often confusing. Lifting and shifting is okay if done consciously, but often this is not the case. Teixeira shares his top tips for cloud migration based on his experience at Demandbase; No need to manually log into your cloud solution and click buttons to manage infrastructure, and scale your infrastructure up and down as needed to maximize efficiency and reduce costs.
In other words – IaC and autoscaling. However, every organization is different and there are many options and opportunities.
At the Cloud Transformation Conference, a virtual event on 15 February, attendees will hear from TSB, ASDA, the Ministry of Defence, and others who are on the frontline of driving cultural and technological change. Use cases range from re-architected and re-platformed applications to cloud-native to startup unicorns spun off from large enterprises.
Remember, the rewards of getting this right are diverse and long-term. PwC reports that companies that have reinvented their businesses and operations through cloud modernization realize value twice as fast as companies running outdated systems and processes.
Organizations going all-in on the cloud “also expect to see measurable return on investment over the next 12 months” in areas ranging from agility to resilience. According to PwC, “Organizations that don’t have a fit-for-purpose cloud and data strategy will be left behind, unable to take advantage of new cloud-reliant technologies like artificial intelligence and GenAI.”
Bradley sums it all up succinctly. “The cloud is where the best businesses build the capabilities they need to compete, stay resilient and delight their customers.” What are you waiting for?
Photo by Tara Winstead
Check out the upcoming Cloud Transformation Conference, a free virtual event for business and technology leaders to explore the evolving cloud transformation landscape. Book your free virtual ticket to gain insight into the practicalities and opportunities of cloud adoption. Learn more here.
