Moving to the Cloud: Overcoming Financial Challenges

The business landscape is changing in modern times, and organizations now have to account for remote workers, diverse office locations, and countless tools and software options. While this may signify that newer, better opportunities are on the horizon, it also creates new challenges for business leaders and struggling IT departments that find it challenging to keep up with fast-paced technology requirements. As an enticing solution to meet these goals, the cloud has addressed many of these business problems – and more businesses are making the switch each day. 

As businesses rush to adopt cloud technologies, they are finding a few unique challenges that must be overcome; however, operating on the cloud provides many benefits for companies that want to take advantage of modern technology and tools. Some of these benefits include reduced costs, increased efficiency and better support for a distributed workforce. Whether a business wants to invest in cloud computing, improve software services or expand its platforms, here are some common financial challenges to expect and the solutions required to successfully overcome them. 

Financial Costs and Burdens 

For most business leaders, financial concerns are often among the first challenges they will think of. Unfortunately, there are many different financial costs and burdens associated with each step of the migration process. From the direct cost required to make the migration to the long-term financial risks of poor adaption and training concerns after the migration is completed, navigating these factors can be incredibly difficult for some organizations. Some of the top costs associated with cloud migration to keep in mind include: 

  • Training users to utilize new systems properly 
  • Increased bandwidth costs 
  • Sourcing people and tools to successfully complete cloud migrations 
  • Application architecture adjustments 
  • Upgrading equipment to limit performance issues 

While this list may seem intimidating and make an organization more reluctant to move to the cloud, successful and affordable cloud migration is possible. No matter the scale or budget of cloud migration, it is vital to have a plan in place before getting started. In most cases, organizations can keep costs low by implementing three unique strategies.  

Create a Detailed Cloud Migration Plan 

Preparation is crucial for successful cloud migration. For the best outcome possible, organizations must have solid change management that can help manage the scope of a cloud migration project while also limiting the level of disruption that could potentially occur. Take the time to examine business objectives and requirements in-depth, review the current state of internal IT operations, and compare its unique needs with the available cloud options. 

Follow Batch Adoption Processes 

One other common way to limit financial costs and burdens when migrating to the cloud is to do so incrementally. Through a process called “batch adoption,” organizations can slowly break down the project into bite-sized pieces to spread out financial costs in the short term. This means that the business will not have the put up as much money initially and will enjoy the flexibility that comes with migrating on their own terms or starting with crucial systems and tools first. 

Consider a Hybrid Cloud Platform 

Some organizations may not need a complete cloud migration to fulfill their goals. In these cases, a hybrid cloud platform may be the best option. For example, if an organization has applications that require consistent usage, there may not be a financial incentive to move entire systems to the cloud. Instead, organizations may migrate applications with varying usage requirements while keeping other on-premises software intact. 

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