Over the past several years, organizations have started using multiple public clouds to drive their business operations. This allows them to gain maximum value from their multi-cloud environment while also dealing with the increased complexity that comes with managing multiple clouds.
A survey by VMware, only about one in five organizations in the Asia Pacific and Japan (APJ) region has reached the tipping point, where the strategic advantages of multi-cloud are much higher than the inherent complexities. These ‘cloud-smart’ organizations have a more sophisticated and mature approach to multi-cloud, helping them reap strategic business advantages. However, 79% of organizations have not yet begun their multi-cloud journey or are struggling with its various aspects from talent gaps to governance to security risks.
How are cloud-smart organizations benefitting from multicloud?
Increased revenue and profitability
Using multiple cloud providers can have a positive impact on revenue and profitability. The more organizations move to use multiple clouds, the more likely they are to see substantial increases.
Respondents from India and Singapore (98%) were more likely to have a positive impact on revenue growth than other APJ respondents. Respondents from Japan were least likely to say the same at 79%. 100% of respondents from India said their multi-cloud strategy positively impacted profitability. 78% of respondents from Japan were the least likely in APJ to say the same.
Easy data management
Even as easily organisations manage and secure their data, 94% consider data sovereignty as a concern while 50% say it’s a ‘significant’ concern. Multi-cloud strategies make it easier to manage and protect data wherever it resides by enabling organizations to work with sovereign cloud providers who ensure that data is protected, compliant, and resident within a national territory.
Transform data into money
Data monetization is expected to become a significant source of money in the future. This is especially true for cloud-smart organizations. Multi-cloud allows ways of managing data through sovereign clouds that enable to choose the right cloud for each data classification and better governance around data mobility.
Multicloud adoption challenges faced by organizations
Security challenges
When there are more clouds, there are more potential points of entry for bad actors. This is making it harder for organizations to keep their data safe. 42% of respondents cited security and lack of tools as a top challenge to go ahead with their multicloud journey.
However, at the same time, having multiple clouds gives organizations more ability to keep their data separate and safe. They can also design different security strategies for each cloud.
Talent scarcity
41% of organizations cited a lack of in-house talent as a challenge to successfully implement the multi-cloud strategy. 40% needed increased hands-on management of clouds for successfully realizing the multicloud. However, as organizations continue their journey to the cloud, the skills gaps in most areas tend to lessen.
Multi-cloud potential can be unlocked by making sure you have the right technology. But it’s also important to have the CEO in charge of the multi-cloud journey. This will help make sure that the multi-cloud strategy is integrated into overall business objectives. Cloud-smart organizations tend to have the CEO as the primary decision maker when it comes to a multi-cloud strategy.
21% of organizations that have already made the move to become cloud smart provide a valuable example for those still trying to find their way. These cloud-smart organizations enjoy the freedom to choose the best cloud provider for each application, avoid vendor lock-in and its associated costs, and have the power to control their data.
Source: VMware
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