As the world continues to navigate the pandemic, companies are doubling down on digital-first solutions and systems to deliver better experiences, services, and outcomes for customers, employees, and partners. Globally, investments in digital transformation are forecast to reach $3.4 trillion in 2026.1
To accelerate digital success, many firms are also aggressively pursuing IT modernization. But too often, both digital and IT modernization efforts are falling short of expectations. For many large enterprises, the transformation journey takes longer and costs much more than expected.
So, what’s standing in the way of successful IT modernization? While each company’s challenges are unique, there are some themes and common reasons why these efforts fall short.
Reason #1: Oversimplifying cloud
The cloud is an easy way to consolidate all your compute, storage, access, and security needs while reaping the benefits of cost savings, operational agility, and scalability as your business grows. But migrating to the cloud is no small feat. Migration costs, down time, transition and unexpected events can add up, especially if the project runs behind schedule.
A more measured approach to cloud can deliver quick wins while setting you up for long-term success:
- Think strategically to optimize security and efficiency. Not every workload belongs on the cloud. First consider what your organization actually needs to migrate, then build out a timeline that ensures all your necessary operations are functional when you need them – or are at least down for the shortest amount of time possible. The cost savings of cloud are best thought of as a long-term play – consider FinOps strategy to evaluate your financial benefits.
- Be prepared to pivot when the unexpected occurs. When Carrefour Belgium’s on-prem servers overheated early in their Google Cloud Platform migration, they had to take emergency steps to ensure essential business services stayed online while they finished their timeline. They migrated at-risk systems to an interim cloud environment, preventing downtime and data loss, and were able to finish their cloud migration on schedule. Their interim environment was later migrated to their permanent platform as planned.
- Simplify cloud management with a platform-based operating model. BRF Global operates dozens of companies in pursuit of its commitment to safely providing quality food to hundreds of thousands of people across the world. When it acquires new businesses, it has to integrate their operations into its own, leading to over 20,000 cloud assets needing to be managed. An integrated multicloud management platform allows BRF to see and address issues across all of them from one single point of control.
- Give yourself room to grow. Compass Group Spain has always enjoyed autonomy within its regional market, but when the mandate to migrate to a shared digital infrastructure came down from corporate, they had to adapt. Thankfully, they had already switched to a private cloud internally, making their migration to Amazon Web Services (AWS) much easier. Now, they still maintain their autonomy while gaining the capacity to grow and scale, both within AWS and their international parent, Compass Group PLC.