To Cloudify or not? A managed services provider’s perspective

My Post (39).pngToday, enterprises are turning to cloud to transform business processes to better compete in the digital era and deliver the best to their customers.

Enterprises have always been recognizing and leveraging technological advancements for business growth. While the fundamentals of IT business have remained the same, enterprises are increasingly moving from ownership-based models to access based models for managing their applications and infrastructure and to maximize returns on investment. However, the major challenges are based on the criticality, complexity and the magnanimity of the migration.

Today, enterprises are turning to cloud to transform business processes to better compete in the digital era and deliver the best to their customers. This has further overwhelmed the CIOs and other IT professionals as the pace and enormity of the task of managing increasingly complex ecosystems and transformation projects has multiplied. Hence, enterprises are opting for the customized services of a Managed Services Provider (MSP).

Cloud migration accentuates the appeal of greater flexibility and agility, which is perceived as a benefit of on-demand capacity and pay-as-you-go pricing in the cloud. A Nasscom report claims that cloud market in India is expected to grow 3-fold to $7.1 billion by 2022. A report titled ‘Cloud – Next Wave of Growth in India’, prepared with Google Cloud and Deloitte Touche Tohmatsu India LLP, said cloud spending in 2018 was estimated to be about six percentage of the total IT spending.

MSPs are ideally placed to work with enterprise customers such as banks to analyze their application and IT infrastructure landscape in-depth and optimize the footprint before undertaking modernization and migration exercise.

The optimization of IT footprint is one of the most critical initiatives that MSPs should conduct. Migration to the cloud is a very vital parameter and should be among the top-most considerations of this optimization exercise.
“To Cloudify or not” is a great opportunity as against being viewed as a dilemma. An experienced MSP would go through the application and infrastructure landscape after steadying the support and maintenance with the objective of retiring, replacing, retaining or realigning the applications.

Migrating the applications to the cloud is not just a lift and shift exercise, it is much more strategic than otherwise perceived. An MSP can add value by taking the following approach to this optimization.

Sunset – MSPs, after having steadily managed the support and maintenance of the application and infrastructure, for critical enterprises such as banks are well-poised to identify applications that can be sunset. These are mostly legacy applications, often unsupported by the respective Original Equipment Manufacturers (OEMs) that may be performing redundant tasks and may require a lot of effort in terms of support to ensure that it fulfils its intended functionality.

Synchronize – In this phase, an MSP will consider applications that bring good technical value to the table but are not up to the mark in terms of functionality. Such applications often go through a re-platforming or re-engineering process to enhance their functional value and fit into the new and optimized IT landscape. – Read more