Cloud computing has become an essential element of digital transformation, offering remarkable versatility whether in a complete or hybrid form.
As revealed in this year's Digital Cyprus Survey, conducted by CITEA, IMR, and Capacitor Partners, an overwhelming 92% of Cypriot businesses surveyed are planning to shift to cloud infrastructure.
But what exactly do we mean by cloud computing? What are its advantages, challenges for a business, and what is the right strategy for transitioning to cloud technology?
Why Cloud Technology is Imperative
Cloud technology refers to the delivery of computing services over the internet, such as software systems and resources including infrastructure and databases. This technology plays a crucial role in automation and security, bringing flexibility to operations and opening up new prospects.
One of the primary benefits of cloud technology, as observed during the pandemic, is the ability for remote access to services and infrastructure through models known as software as a service (SaaS). This approach helps in reducing costs, as businesses only pay for what they need, thereby eliminating the necessity of purchasing and maintaining most hardware.
The transition to cloud technology also empowers businesses with scalability, adaptability, and flexibility. These qualities enable them to scale and diversify their operations in line with market demands and to successfully navigate unforeseen future changes.
What it Takes to Transition to the Cloud
However, moving to cloud technology is not straightforward and comes with its own set of challenges. According to a Statista survey, 82% of the respondents stated that managing expenses related to cloud technology is a significant challenge.
More importantly, issues like data security and governance, as well as a lack of resources or expertise, are prevalent concerns, with the latter being a common global phenomenon, as in Cyprus.
While 92% of the Cypriot businesses surveyed expressed their intention to move to cloud technologies, only 59% are willing to invest in continuous learning and skill development of their human capital, and just 63% plan to collaborate with industry experts. In the context of these findings, for a business to fully benefit from the aforementioned advantages, the adoption of cloud computing must be approached with diligence and purpose.
A McKinsey study highlights that a successful digital transformation involving cloud technologies requires a combination of various factors. These factors include executive commitment, flexibility in collaborations to avoid vendor lock-in, planning and a strategic approach to complete or hybrid cloud technology, ensuring application compatibility with new infrastructure, staff skill development, and a phased approach.
The combination of these factors culminates in recognizing digital transformation as a continuous, iterative process rather than a one-time, predetermined change. Transitioning to cloud computing is not a future aspiration but a current strategic action that redefines the traditional business model, eliminating the need for physical presence of staff or on-premise infrastructure. As noted by renowned technologist Paul Maritz, 'Cloud is about how you do computing, not where you do computing.'
Capacitor Partners stands ready to assist your business in crafting its technological strategy and successfully coordinating its implementation. Having gained the trust of our country's largest organizations in strategic, digital transformation, and product management, Capacitor Partners is a premier choice for redefining and transforming your business operations, creating a productive model suitable for your enterprise.