Cloud Migration and Modernisation in 2023: 5 Trends
We know, embracing cloud technologies can transform organizations and push them towards highest levels of their businesses. Cloud adoption for organizations may mean Cloud Migration and Migration of traditional / legacy architecture to the cloud, and what already has migrated.
A quick check of available stats show the irreversible trend that cloud innovations, and those who embrace them, are seeing. The assessed worth of the cloud computing market is expected to be ~1250 Bn USD by ’27 (at a CAGR of 17.9% since 2022).
The pandemic was the excellent disruptor of everything legacy and hastened cloud adoption. In 2023, we are seeing some BAU behaviour, and certain patterns starting to shape migration and modernization. Different surveys by AWS, Microsoft and Google show a myriad list of trends. We at 3nayan are noticing these five consistent patterns.
1. Conviction in cloud benefits
While organizations have indulged in cloud services earlier, it has been to test waters, to follow a trend and definitely with some trepidation. The situation, over the last two years, has changed and the migration is starting to appear inevitable. More and more organizations are convinced about the benefits which go much beyond cost savings but into innovation territory.
82% of organizations with a migration & modernisation strategy say
moving to the cloud is a stepping-stone to enabling digital transformation
The essential cloud helps that organizations distinguish incorporate the capacity to keep up with and remain in front of safety and consistence rules and guidelines, the lightweight adaptability expected to scale huge, and the assurance and recuperation against possibly disastrous business calamities.
2. Strategy and Methodology driven Cloud Migration and Modernization
Earlier organizations would start off, often, on an un-strategised lift and shift hurried migrations. Now, organizations are starting to lead with detailed planning, with the understanding that transformation must be preceded by strategic planning.
| TOP 3 CLOUD MIGRATION GOALS | Enable AI/ML, IoT, edge computing Improve resiliency/ Disaster recovery Ability to utilise best of breed service |
These strategies vary, from outlines in synch with business plans, to laid out application by application vs business schedules.
Many organizations are also now considering cloud only strategies, slowly going away from on-prem and cloud based hybrid strategies. Of course, with ESG related pressure just around the corner, some organizations are planning to phase out hybrid models totally.
3. Increased multi-cloud implementations with On-Prem
Most organizations, who are strategizing and planning are considering multi-cloud arrangements. These could be across different cloud infrastructure from varying CSPs.
The desire for Multi-cloud arrangements comes from the desire to pick best of breed without being shackled with redundant services, cost plans, complexities, but also being able to utilize specific features and partner sets. Needless to say, this adds a layer of Business Continuity as well.
While Cloud only situations seem to be the future, there are still enough organizations in India who want to keep an on-prem footprint. These organizations understand the trend, but are some time away from complete migration.
Organisations with a Cloud Migration & Modernisation strategy are 58% more likely to be cloud-only three years from now
So, for organisations with a plan, we might be at that time to plan from on-prem to cloud only.
4. Movement of non-critical activities and data
A large and cumbersome part of migration is moving data. Not just the migration, but storage is available at a price. Many organisations are doing this smart by moving non-critical data to cloud, first. Critical data which, in most cases, needs to be kept secure or need rapid access are moved later or continue to be on-prem for now. Same is happening for enterprise and strategic applications as well. In some cases the ability (or lack thereof) of running two different maintenance or production support workloads is making the decisions harder.
Non-strategic or non-crucial activities which seem to be migrating first and at rapid scale incude systems management, server virtualization and data analytics to even marketing, data management and core development.
5. Increasing cloud migration to public cloud
The public cloud end-user spend in 2023 is expected to touch $591.8 billion. Surveys show, this comes up to about $151 per employee in a business. These numbers paint an unmistakable picture. Organizations will utilize public cloud in 2023 at an unprecedented concealed rate.
Higher revenue, profitability through reduced costs, scalable models and disaster recovery, form the main reasons for organisations using third party CSPs.
…and in Conclusion, Organizations, world over are viewing migration and modernization as key elements for higher revenues, lower cost, transformation and future proofing themselves. They also seem to understand now that instead of adhoc lift and shift, a strategy backed migration (and modernization) is important to navigate through the current uncertainty.
The cloud M&M challenges are serious. As important as legacy migration is, modernization of already migrated systems is crucial and technically complex. In addition, multi-cloud and hybrid infrastructure being run from different panes of glass make the entire endeavor quite an ordeal.
This, organizations must plan their cloud M&M strategies carefully, along with external specialists to achieve the required success.
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