The Cloud-First Mindset

To remain competitive, industry giants need to change the way they think about technology and adopt a cloud-first mindset. Prioritizing cloud-based solutions and viewing them as the natural, default option is vital to the success of new projects and initiatives.

Migrating legacy systems to cloud has the added benefit of eliminating technical debt from older policies and processes. However, it is important to be mindful in order to avoid creating new technical debt when developing and deploying cloud systems. While adopting a cloud-first mindset may seem like an expected result of digital transformation, it requires significant changes to an organization’s culture and behavior, similar to those required for the effective adoption and implementation of DevOps methodologies.

We have to rethink the old way of doing things – cloud is the new normal

Evolving needs and capabilities

When “cloud” first entered the lexicon of modern business, it was incorrectly thought of as a cost‑cutting measure. Organizations were eager to adopt the cloud with the promise of savings – despite not fully understanding what it was or its ever-growing capabilities. These types of implementations were generally short-sighted: lacking a well-defined digital strategy and focused on immediate needs rather than long-term goals.

As adoption increased, it became apparent that adjusting approach and redefining digital strategy is necessary for success. Optimizing applications for the cloud and developing comprehensive governance policies to rein in cloud sprawl, shadow IT, and uncontrolled (and unmonitored) spend are just part of the equation.

“…spending on data center systems is forecast to be $195 billion in 2019, but down to $190 billion through 2022. In contrast, spending on cloud system infrastructure services (IaaS) will grow from $39.5 billion in 2019 to $63 billion through 2021.”

Source: Cloud Shift Impacts All IT Markets, Gartner

A cloud-first approach reshapes the way an organization thinks about technology and helps mitigate the potential to recreate unnecessary technical debt that was eliminated through digital transformation initiatives.

The human element of digital transformation

Digital transformation should extend beyond technology. It’s a long-term endeavor to modernize your business, empower your people, and foster collaboration across teams. Transforming your systems and processes will have a limited impact if you don’t also consider the way your teams think, interact, and behave. This is especially important because the significant operational changes introduced by modernizing infrastructure and applications can present challenges to employees who feel comfortable maintaining the status quo. Before you can disrupt your industry, you have to be willing to disrupt the status quo within your own organization.

The fact is that change can be difficult for a lot of people, but you can ease the transition and defuse tension by actively engaging your teams. You cannot overstate the importance of clear, two-way communication. Letting your people know what you’re planning to do and also why you’re doing it can help them understand the value of such a potentially massive undertaking. It’s also important to have a solid understanding of what your teams need and creating open lines of communication will enhance requirements gathering efforts. This level of communication ensures that whatever you implement will adequately address their needs, and ultimately improve their workflow and productivity.

The introduction of new tools and technologies, even if they’re updated versions of the ones currently in use, will generally require some level of upskilling. Helping your teams bridge the technical gap is a necessary step.

Competition at its finest

Few sectors have seen the level of disruption faced by the finance industry. FinTech disruptors, born in the cloud and free from the chains of technical debt and bureaucratic overhead, have been able to carve out their place in the market. They’ve attracted customers by creating innovative offerings and customer-focused business models, competing with legacy institutions that seemed to have an unassailable dominance that barred any new entrants.

Legacy retail banking institutions, known for being risk averse, had a tendency to implement new technology very slowly. They were plagued by long development cycles, dedicated hardware solutions, and strict compliance requirements to safeguard highly sensitive data.

When Capital One turned its attention to the cloud, they created a holistic digital strategy that wasn’t limited to tools and systems. They understood that technology was not a line item on a budget, but an investment in the company’s future, and that successfully executing their strategy would require a culture shift. They focused on attracting technologists who could enhance the company’s digital capabilities to increase employee engagement, improve cybersecurity, and improve customer experience by using the latest technologies, including artificial intelligence and machine learning. They also created a cloud training program so their employees would understand the technology, regardless of whether or not they were in technical roles, reinforcing the company’s cloud-first mindset.

FinTech disruptors, born in the cloud and free from the chains of technical debt and bureaucratic overhead, have been able to carve out their place in the market.

Understanding your options

Developing a proper cloud-first mindset is not about limiting your options by using the cloud exclusively. A digitally transformed business doesn’t adopt the latest technology simply for the sake of adoption. In fact, the latest and greatest SaaS or cloud-based offerings may not always be the best option, but you have to know how to make that determination based on the unique needs and circumstances of your business. By objectively assessing business goals, considering all options (including traditionally hosted), and prioritizing agile, flexible solutions, you can redefine your approach to problem-solving and decision-making. This mindset means that cloud is no longer the “alternative.”

We have to rethink the old way of doing things – cloud is the new normal, and hardware-based options should only be implemented if they are truly the best way to meet business goals and overcome challenges. We don’t need to abandon on-premises or traditional IT to maintain or regain competitive edge. We just need to understand that it’s not always the right choice.

This approach will help you develop a macro view of your organization’s needs and prompt you to identify and treat the underlying cause of business challenges, not just the symptoms.

Building a foundation for disruption

Becoming a disruptor in your industry is not the goal of digital transformation –that takes more than just adopting the cloud. The goal is to free your organization from the restraints of costly, outdated legacy infrastructure and monolithic applications, and enabling your teams to scale and innovate. The flexibility of cloud and SaaS-based options reduce the risks associated with developing new products and services for your customers, and instilling a culture of cloud-first thinking gives your people the freedom to explore and experiment. That’s how you drive innovation and compete against new, lean born-in-the-cloud competitors. That’s how you disrupt.