The business world’s transformation has been nothing short of remarkable, with the cloud and tech trends reshaping the way businesses operate.
Businesses from every industry and size have been increasingly embracing the cloud for its flexibility, efficiency and enhanced security. However, the journey to the cloud has included some unforeseen obstacles. Some organizations that rushed to migrate have ended up disappointed to the point where they’re now questioning future cloud investments due to soaring costs.
In 2024, businesses will be faced with the task of reining in cloud spending. The pressure to cut costs will mount as macroeconomic factors come into play. At the same time, they will be navigating evolving trends in AI, regulatory changes, and sustainability goals.
Dave Simpson
To thrive in this environment, businesses will need to adopt innovative approaches and seek out trusted partners to maximize the value derived from their cloud investments.
Strategies for Cloud Adoption
When strategizing for 2024, business can envision their operation as a cutting-edge automobile. Much like the dashboard in a car relays real-time information about the vehicle’s components, understanding these insights ensures a smoother journey.
Just as a car’s fuel gauge shows the current fuel level and empowers drivers to monitor consumption, similar tools and practices exist for cloud management, affording organizations valuable actionable insights into their spending and usage trends.
Here’s a look at strategies to consider:
- Embracing FinOps: Financial operations (FinOps) will be a key driver of cloud optimization. As more organizations rely on hybrid and multicloud environments, their finance departments often struggle to manage costs effectively. Variable pricing and a lack of visibility make it challenging to keep cloud spending in check. Effective FinOps use can reduce cloud costs by as much as 20-30%, McKinsey reports. FinOps bridges the gap, bringing financial, technical, and business teams together to optimize cloud investments.
- Proactive IT Management with AIOps: Inefficiencies and disruptions in IT operations are expensive. Businesses need to prioritize measures that strengthen their cloud strategies. Artificial intelligence for IT operations (AIOps) plays a pivotal role in identifying and preventing IT issues before they affect operations – and increase costs for businesses.
- Harnessing GenAI: Still-maturing generative AI has the potential to elevate cloud capabilities, particularly in hybrid and multicloud environments. As organizations grapple with the complexities of cloud migration and legacy technology, services partners can help manage these transitions more effectively. Generative AI will enhance these management techniques and support emerging AI capabilities that require substantial computing power, speeding up data processing.
Smooth Journey with Modern Ops + AI
As businesses embark on the journey of modernizing operations through the cloud, embracing innovative strategies like FinOps, AIOps, and generative AI while leveraging industry cloud platforms will become foundational for their digital transformation strategy.
Just as a well-maintained car ensures a smooth and efficient journey, businesses that adapt to the evolving tech landscape can optimize their cloud investments. This optimization enables them to maintain agility, competitiveness, and responsiveness in the face of the ever-changing demands of the modern business world.
Dave Simpson is interim Global Cloud Practice leader at Kyndryl. He previously was senior vice president of growth for the cloud practice.
Image: iStock
