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Why organizations are moving to the cloud

by Karthik Ramachandran, David Linthicum
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4 minute read 05 March 2020

Why organizations are moving to the cloud Security, data modernization, and cost among top drivers for cloud migration

4 minute read 05 March 2020
  • Karthik Ramachandran India
  • David Linthicum United States
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​What's driving organizational efforts to move data to the cloud? As cyberattacks become more sophisticated, leaders are looking to bolster cybersecurity as well as shift from legacy to modern data platforms.

Cloud has become the primary location for businesses to store data; most have moved even their applications to cloud platforms, and many of those businesses that have their data on-premise today are soon planning to migrate to cloud. Companies across industries are modernizing their data platforms to leverage new-age applications and advanced analytics at the same time as they are moving their data to cloud. Indeed, a Deloitte study suggests that cloud and data modernization are highly interrelated and actually reinforce each other.1

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What drives IT executives to initiate cloud migration? Deloitte’s survey of more than 500 IT leaders and executives reveals that security and data protection is the top driver. With 58 percent of respondents ranking it No. 1 or 2, security is top-of-mind for everyone, from C-suite IT executives and senior leaders to IT managers and developers.

Cybersecurity attacks are rising in sophistication,2 and a shortage of skills means that many companies are struggling to manage security in-house. Some IT executives are turning to third-party cloud and managed security services, with cloud providers delivering sophisticated cyber capabilities and solutions3 and cloud offering the potential of helping to mitigate security incidents.4 These factors suggest that IT executives may be increasingly relying on the expertise of third-party cloud-based security and infrastructure providers to protect their data.

The No. 2 driver for cloud migration, data modernization, primarily involves moving data from legacy to modern databases. Fifty-five percent of the surveyed IT leaders and executives strongly agree that data modernization is a key component of, or a reason for, their companies’ shift to the cloud.5 Executives today need timely and targeted analytics on existing data; many rely on a stream of insights based on data mining, exploration, and prediction.6 And since much of that data is on cloud today—indeed, 91 percent of respondents noted that their companies store data primarily on the cloud—it is hardly surprising that leaders see cloud as essential to effectively modernizing companies’ data platforms.

Cost and performance of IT operations has long been a significant driver for cloud adoption. But cost has become less of a factor as cloud’s other business benefits have emerged. For instance, it can enable operational agility and greater efficiency.7 Cloud can also present a range of solutions and options from established tech vendors and supports enterprises’ digital transformation efforts.8

In forging ahead toward cloud, IT executives have encountered a range of challenges. Forty-seven percent recognize that “cloud is more complex than they expected.” To address this concern, technology companies providing cloud and managed services should work closely with businesses and support them on three main aspects as part of their cloud migration journey:

  • Developing the right approach by ensuring clarity on the desired business outcome or end result
  • Taking advantage of relevant talent and expertise to address companies’ core business issues
  • Using appropriate toolsets that are user-friendly, secure, and viable in the long term
Acknowledgments

Thanks to Sayantani Mazumder for her research support.

Cover image by: Viktor Koen

Endnotes
    1. Tom Davenport, Ashish Verma, and David Linthicum, Data modernization and the cloud, Deloitte Insights, August 26, 2019. The survey was conducted in April 2019, covering 504 respondents in the United States at companies with annual revenues in excess of US$500 million. Some 46 percent of the respondents were C-suite executives, 30 percent were senior executives/head of business units, and 24 percent were managers/programmers. Respondents were involved in or making decisions about cloud and/or data management activities and issues, and worked within a technology-related function. View in article

    2. Help Net Security, “Cyber criminals continue to evolve the sophistication of their attack methods,” May 23, 2019. View in article

    3. Mike Wyatt, David Mapgaonkar, and David Jarvis, Rediscovering your identity, Deloitte Insights, November 11, 2019; Tech 21 Century, “The 5 best cloud security solutions in 2019–2020.” View in article

    4. Jeff Dennis, “Three unbeatable security advantages of cloud-based solutions for your business,” Cloud Tech News, June 25, 2018; Gartner, “Cloud strategy leadership,” 2017. View in article

    5. Tom Davenport et al., Data modernization and the cloud, Deloitte Insights, August 26, 2019. View in article

    6. Philip Russom, “Modernization projects will dominate data management through 2020,” TDWI, December 19, 2019. View in article

    7. Trifacta, “Obstacles to AI & analytics adoption in the cloud,” January 2020. View in article

    8. Rao Papolu, “Five business drivers for organizations moving to the cloud,” Forbes, May 22, 2018. View in article

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Karthik Ramachandran

Karthik Ramachandran

Senior research leader

Karthik Ramachandran is a senior research manager with Deloitte’s Center for TMT. He specializes in the technology and semiconductor industries, and works closely with senior leaders and SMEs in Deloitte’s TMT practice, globally, to codevelop and write thought leadership perspectives tailored for senior industry executives. Besides publishing on Deloitte Insights, his articles have been featured on Deloitte-Wall Street Journal platforms (the CFO/CTO/CMO Journals), the SEMI industry association, and the Houston Business Journal.

  • karramachandran@deloitte.com
  • +1 615 718 2961
David Linthicum

David Linthicum

Managing Director | Chief Cloud Strategy Officer

As the chief cloud strategy officer for Deloitte Consulting LLP, David is responsible for building innovative technologies that help clients operate more efficiently while delivering strategies that enable them to disrupt their markets. David is widely respected as a visionary in cloud computing—he was recently named the number one cloud influencer in a report by Apollo Research. For more than 20 years, he has inspired corporations and start-ups to innovate and use resources more productively. As the author of more than 13 books and 5,000 articles, David’s thought leadership has appeared in InfoWorld, Wall Street Journal, Forbes, NPR, Gigaom, and Lynda.com. Prior to joining Deloitte, David served as senior vice president at Cloud Technology Partners, where he grew the practice into a major force in the cloud computing market. Previously, he led Blue Mountain Labs, helping organizations find value in cloud and other emerging technologies. He is a graduate of George Mason University.

  • dlinthicum@deloitte.com
  • +1 703 216 6676

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