Cloud Computing Adoption: Uncovering Corporate Drivers, Challenges, and Risks in the Cloud

 

        Cloud computing provides cost-efficient, scalable solutions to manage enterprise infrastructure. Organizations often fear surrendering control of their infrastructure to cloud providers; however, cloud proficiency and scalability entice organizations to restructure.
        Cloud Adoption Drivers. Cloud Computing: Concepts, Technology & Architecture discusses three business drivers that motivate organizations to adopt cloud computing platforms: “capacity planning, cost reduction, and organizational agility” (Erl et al., 2013, Chapter 3). Organizations utilizing on-premises infrastructure struggle to accurately predict capacity needs. When organizations fail to predict capacity needs adequately, organizations lose significant resources by over-provisioning or under-provisioning resource needs. A cloud-based infrastructure allows an organization to provision resources on demand and encourages an organization to adapt to changes over time. In today’s competitive industry and broken economy, small companies and startup-type firms desperately need the cost reduction benefits cloud services provide through seamlessly delegating elastic resources that adapt to support fluctuating business needs.
        Cloud Adoption Challenging Similarities. The Flexera 2023 State of the Cloud Report (2023) identifies similar challenges between all small and large organizations when addressing: “cost management, security, and a lack of resources and expertise”(Report Highlights section). It suggests that fundamental areas of concern exist in the cloud. Both small and large organizations struggle with overarching issues of cost, planning, and organizational agility while navigating the complexities of cloud adoption.
        Cloud Adoption Challenging Differences. The Enterprise Cloud analyzes the process organizations embark on when moving to the cloud (Bond, 2015). While large organizations often possess more resources to cover unexpected challenges, they often struggle with the complexities of transitioning legacy systems and reconciling incompatible security systems. Smaller companies may find it challenging to provide a sufficient budget and manpower for an effective cloud implementation strategy. Small business owners often face resource constraints when moving from traditional to cloud-based data centers. They may rely on their existing IT teams to acquire cloud security skills throughout the transition phase instead of hiring new experts during the transition. Companies that wish to move to the cloud would likely be better off hiring a senior cloud infrastructure engineer, providing for proper planning up front, as well as the ability to educate junior engineers or engineers who are not familiar with the cloud. This investment would provide an organization with the best short-term and long-term benefits.
        Adoption Risks. Above the Clouds: Managing Risk in the World of Cloud Computing explores the need to reduce risk by ensuring quality assurance, reducing liability with cloud agreements, and having an exit strategy when using a cloud-based solution with a provider (McDonald, 2010). It suggests that organizations must implement safeguards to address new risks associated with using a cloud provider. While organizations still face the threat of malicious attacks and technical failure, placing their trust in the cloud and facing change becomes the front-runner in addressing risk in a new landscape.


References:
Bond, J. (2015). The Enterprise Cloud. Sebastopol, CA: O’Reilly Media, Inc.
Erl, Thomas, Puttini, Ricardo, and Mahmood, Zaigham. Cloud Computing: Concepts, Technology & Architecture. New York, NY: Pearson
Flexera. (2023). 2023 State of the Cloud Report. Retrieved from https://info.flexera.com/CM-REPORT-State-of-the-Cloud#view-report
McDonald, K. (2010). Above the Clouds: Managing Risk in the World of Cloud Computing. New York, NY: IT Governance Publishing

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