Many companies have realised that using public clouds can help with hyper scalability, faster deployment, and flexible operating costs. Cloud migration has transformed the software development process by assisting organisations in gaining access to modern applications and technologies without a significant upfront cost.
But not as many companies are jumping on the ‘cloud’ bandwagon as it may seem. Research by Gartner shows that enterprise spending on public cloud services is projected to grow 18.4% in 2021 to a total of $304.9 billion. While this growth might appear remarkable, it still represents less than 10% of global IT spend, projected to hit $3.8 trillion in the same period.
The data centre remains ‘king’
In 2021, the money going into data centre systems will constitute most of the IT spend, second behind enterprise software spend. While ‘hyperscalers’ may be responsible for a significant proportion of this growth, renewed data centre expansion plans also contribute a fair bit. Most global enterprise customers demonstrate a desire to operate within the hybrid cloud, with an on-premises technology footprint kept for some time.
The cloud isn’t for everyone
Some companies find themselves without an exit strategy for their data centres and current environments amid the public cloud migration hysteria. Cloud migration should be preceded by meticulous planning and robust engineering work. Companies that fail to plan for changes in how they develop, deploy, and maintain their applications may end up with stable on-premises costs but rising monthly cloud bills.
Even with adequate planning, not every business should migrate to the cloud. Many organisations, for instance, run mission-critical business applications that require high transaction processing, high resilience, and high throughput. For these organisations, it makes more sense to support and protect existing IT infrastructure with on-site data centres or mainframe modernisation, especially as moving such environments to the cloud may prove complex and costly.
The public cloud requires a range of operational changes – redesigned testing standards, different development structures, site reliability, security engineering, and regulatory compliance – for its full benefits to be realised. All of these require flexible teams and alternate ways of working, which many businesses lack.
In a nutshell, the main reason why some enterprises aren’t moving everything to the public cloud is that many critical apps are better housed in private data centres.
If you’re interested in reaping the full benefits of managed cloud migration but lack a flexible team to help you achieve this goal, look no further than Linktech. Using our engineering, infrastructure, and application management experience, we have empowered businesses all over Australia to carry out complex, enterprise-scale transformations, reducing IT operating costs by up to 30%. We have migrated nearly 200,000 workloads to the hybrid cloud, including businesses that mainly use mainframe systems.
Organisations should consider their overall strategy, keeping in mind that not everything is right for the cloud. More importantly, the modernisation of technology shouldn’t be overlooked because it could bring quicker results, better business outcomes, and an improved security posture.
Migrating to the public cloud, applying a hybrid approach, or even upgrading a non-cloud system are all tasks that Linktech’s integrated approach can handle. Contact us today to help you with the decision-making process to achieve your strategic goals as quickly and as cheaply as possible.