Cloud stereotypes that hinder your investment
There have been numerous stereotypes in the market for years regarding investing in business development based on the cloud. We've often heard concerns about excessive costs, fear of data loss, or the threat to business continuity in the event of a technology provider failure. Cloud skeptics also frequently point to a lack of flexibility in choosing available solutions. So, we decided to investigate how professionals in large and medium-sized companies identify the barriers to broader cloud utilization.
Bartosz Śliwa
Head of Agile Delivery at Euvic S.A.
What are the main barriers to investing in cloud solutions?
Commissioned by Euvic, the Keralla Research Institute conducted a study in which respondents were asked to answer this question. Check out the blockers the respondents pointed to.
- 95% of enterprises recognize the drawbacks of cloud solutions, with only 5% of respondents not perceiving any.
- Bandwidth constraints, indicating a low level of internet network quality, are primarily pointed out by large companies, those with annual revenues exceeding 250 million PLN and employing more than 250 people.
- Inefficiency and instability of cloud computing are notably evident in the service sector and large companies.
- Once again, security is a significant concern for companies: 25% of the largest firms and 28% of medium-sized ones identify this as the main flaw they observe in cloud solutions.
- Issues related to the so-called human factor and service from cloud providers are mainly noted by medium-sized enterprises.
Among the barriers to investing in the cloud, both large and medium-sized enterprises frequently cite high costs and management’s resistance to implementing cloud solutions. Interestingly, technological barriers are most noted by service providers (44.2%), and least by trading companies (4.2%), while only enterprises employing more than 250 people point to the lack of technical capabilities and poor communication infrastructure as blockers. Legal restrictions are identified as a barrier by companies with 50-249 employees. A lack of compatibility of currently held solutions with the cloud environment is a barrier most often discussed by service providers. Other obstacles indicated by respondents include: no need for wider application, lack of specialists, internet provider limitations, lack of competence, or the costs of switching to a subscription model.
Key reasons limiting investment in cloud solutions in large and medium-sized companies
The key to success in digital transformation - how does Azure break barriers?
Digital transformation is a change that is not only technological but primarily business and cultural. It requires a complete shift in mindset and the courage to continuously reach for new ways to deliver value.
To begin the process of implementing cloud services in an organization and, most importantly, to successfully conclude it, a comprehensive approach to the issue is necessary. The main areas that need to be addressed in the context of digital transformation are: people, process, and technology.
Szymon Augustyński
Customer Success Account Manager at Microsoft
It might be risky to say, but it’s probably true that a successful or even optimal digital transformation can’t happen without using the Cloud Adoption Framework. Whether we choose the approach proposed by Microsoft or by other manufacturers, this publicly available knowledge provides a great base for inspiration and, most importantly, the key to business success. This holds true not just for migrating to the public cloud.
Why? Because cloud migration is an extensive and complex process. The knowledge contained in the Cloud Adoption Framework helps structure all phases of the project—from building strategies, through implementation, to managing, supervising, and improving the migrated resource.
So, what does the Cloud Adoption Framework for Azure look like in practice?
Stereotypes as a barrier to business scaling
Expert commentary
While it may be natural for both large and medium-sized companies to cite the cost of cloud investment as a concern, it is important to highlight another frequently noted barrier. Especially among medium-sized business representatives, there is a noted lack of understanding of technology benefits among decision-makers and employees. Such an approach can pose a risk to effective competition or even survival in the market. Today, there is no rational explanation for not utilizing rapidly developing digital technologies based on cloud computing. In a world where thousands of startups are revolutionizing life and business daily, one cannot afford to ignore opportunities for business optimization and continuous modernization. It is important to remember that cloud computing offers the lowest, fastest, and most cost-effective entry point into the digital world.
Any company that reaches a size classified as medium – not to mention large – must keep this in mind. Overlooking digital potential can quickly lead to disastrous consequences. Educating company boards about the possibilities of new technologies rests not only on the shoulders of those responsible for IT within the company but also on solution providers and public institutions that should support the digital revolution.
Large company representatives also often cite the lack of compatibility of market-available solutions with those currently used in their organization as a barrier to cloud investment. This is also a stereotype we believe must be challenged. Often such concerns may stem from a lack of a broader perspective on the possibilities of adapting and integrating different technologies. Frequently, in the course of digital projects, we undertake such integrations and know that selecting and matching the right tools, especially those based on the cloud, is crucial. Sometimes it is also wise to decide to abandon systems already used in the company in favor of new, more innovative ones that offer greater future development potential. We are aware that this is a challenge in large organizations requiring top-level decisions. We also know of implementations that not only took much longer than originally planned but were even abandoned midway. However, we believe that in cooperation with the right partners, every company can undergo a digital revolution that allows it to compete more effectively in the market.
Bartosz Śliwa, Head of Agile Delivery
EUVIC S.A.
The course to innovation: Microsoft and future technologies
Expert commentary
Microsoft consistently invests in the development of public cloud, artificial intelligence, and security services, reflecting our vision for the future of technology. The Azure computing cloud, the broad range of Microsoft 365 business solutions, and innovative xRM applications are the foundations on which we build our offerings. Because the cloud is our most convenient method of delivering innovations, we can focus on creating advanced data processing methods and artificial intelligence, which are key to the security and efficiency of our customers.
The internet has indeed revolutionized the way business is conducted, and now the cloud and AI are similarly transforming companies. Investing in security is not just about protecting data and infrastructure but also ensuring that innovations are delivered responsibly and in compliance with best practices.
Employee efficiency, process automation, speed of solution delivery, and the optimization of costs and carbon footprint are areas we continuously develop. Our SaaS and AI services are available on a ready platform, enabling clients to quickly build their own solutions and adapt to a changing market.
Microsoft is committed to continuous investment in these areas to support businesses in all aspects of their operation – from day-to-day work to strategic planning for the future.
For Microsoft, this is not a short sprint or a temporary investment. Today, Microsoft is a company focused on delivering solutions through a vast partner channel to meet specific industry needs. Our latest financial report shows that our strategy is well-received by businesses worldwide, and the investments we make well-position our leadership in this solution area.
Michał Furmankiewicz, Principal Program Manager
Microsoft Polska
Summary
There are quite a few stereotypes blocking cloud investments, and overcoming them is key to business success. Applying a comprehensive approach and innovative solutions, such as Azure, allows for effective digital transformation. There is no longer room to passively watch the cloud – the future belongs to those who boldly reach for cloud solutions and agilely adapt to the dynamically changing market environment. The time for digital revolution is now!