March 2, 2016

What is a Cloud Transformation? Digital Consolidation

By Jennifer Klostermann

What is a Cloud Transformation?

A Cloud transformation has been fundamental to the evolution of business, with new technologies constantly changing the dynamics of the business environment, and both employee and employer needs changing rapidly. Remote access to systems alone has caused a radical innovation in the running of many companies, with global organizations reaping numerous rewards, not least of all cost and time savings. Says Richard Vester, Director of Cloud Services at EOH, “When it comes to making improvements in business – of any size and across just about every sector – embracing new technology and the benefits it can offer to both the company and its customers is a logical first step.” The success of cloud computing is apparent not only due to the considerable number of businesses moving into the cloud computing ecosystem but by the important industry-specific changes being exhibited.

Leveraging Economies of Scale & Digital Transformations

In its current, most advanced form, the cloud allows for the leveraging of economies of scale through automation as well as the move to global applications. Organizations are enjoying the benefits of mobility that still allows full data control while providing workforces with far greater flexibility. Aside from the industrialization of IT and the functionality of computing, the cloud is transforming economies and encouraging businesses into the digital realm. Discussed in Verizon’s State of the Market: Enterprise Cloud 2016 report, “In the past few years, we’ve seen cloud go from a newcomer to part of the established order. But despite the maturity of cloud, the market is still developing, and most organizations are still finding new and exciting ways to take advantage of it… The IT function is now much more closely aligned with the lines of business (LOBs) and is adept at managing a portfolio of cloud providers… Companies are combining public, private and On-Premises infrastructure to create highly sophisticated, customized environments.

Cloud Transformation with Aggregators, Brokers & Integrators

Despite constant developments, there is not yet one cloud to rule them all, and adapting an organization to function within the cloud environment can be time-consuming and resource intensive. Cloud aggregators, brokers, and integrators are taking a stab at pulling the many cloud services together. Gartner forecasts that the cloud service brokerage market will reach $160 billion by 2018, nearly doubling over a four-year period. These third-party consultants function as intermediaries between cloud SPs and subscribers, researching available services and negotiating work processes, financial goals, implementation needs, and data management requirements. The level of responsibility differs between brokers, aggregators, and integrators, and consumers are able to decide how much or how little interaction they want to have with the providers of the actual cloud services, benefiting from packaged deals or bargained rates. Those exploiting any of these transitional services should, however, carefully consider the security of such agreements, measure the independence of brokers, and understand how much protection they are afforded from both primary cloud service supplier and intermediary failures.

By Jennifer Klostermann

Jennifer Klostermann

Jennifer Klostermann is an experienced writer with a Bachelor of Arts degree majoring in writing and performance arts. She has studied further in both the design and mechanical engineering fields, and worked in a variety of areas including market research, business and IT management, and engineering. An avid technophile, Jen is intrigued by all the latest innovations and trending advances, and is happiest immersed in technology.
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