As we soar into 2023, cloud migration and modernization are taking center stage in the world of IT, transforming businesses like never before. Based on Microsoft’s latest research, the global cloud computing market value is expected to reach a staggering $1,240.9 billion by 2027, and for a good reason.
Further, the COVID-19 pandemic accelerated the demand for cloud services, proving the crucial role platforms like Azure, Microsoft 365, and Microsoft Teams play in elevating organizational capabilities. Gartner’s 2023 CIO and Technology Executive Survey confirms this trend, with 46% of organizations increasing their spending on application modernization and 50% investing more in cloud platforms while reducing expenses on legacy infrastructure.
So, now more than ever, enterprises must recognize the significance of cloud migration and modernization to stay ahead in this ever-evolving landscape. But why is this migration trend so important for organizations in the first place? Let’s check it out in detail.
Why Embracing Cloud Migration and Modernization is Imperative for an Organization’s Growth
Leveraging technology in today’s fast-paced business world is crucial to staying ahead of the competition and fostering growth. Fortunately, cloud migration and modernization are here to revolutionize the game, offering exciting ways for organizations to enhance efficiency and drive innovation.
Let’s see why businesses must embrace this transformative trend, complete with illustrative examples:
- Reliability: Cloud vendors like Microsoft Azure offer service-level agreements guaranteeing 99% uptime, with responsibility for backups and disaster recovery. An example is the Under Armour Connected Fitness platform. Their migration to the cloud resolved their data center reliability challenges.
- Fast Implementation: Cloud computing enables development teams to optimize and accelerate workflows, fostering rapid digital innovation. For example, after migrating to the cloud, Capital One, a prominent bank in the US, reduced its development environment build time from months to minutes.
- Availability: Cloud-based applications offer global access, enabling remote work and increasing employee flexibility through Microsoft 365 and Microsoft Teams.
- Cost Reduction: Cloud migration eliminates the need for expensive server equipment and maintenance, reducing operational expenses. Emirates, for example, expects to save $1 million annually after fully retiring its outdated hardware to the cloud in 2020.
- Scalability: Cloud-based workloads enable organizations to respond quickly to peak demands and lower capacity when needed. Yedpay, a payment platform, reduced costs by 40% after migrating to the cloud.
- Security: Top cloud providers consistently upgrade their services to comply with the latest industry standards and regulations, reducing the risk of cyberattacks. Gartner predicts that up to 99% of cloud security failures through 2025 will be the customer’s fault.
Now, let’s jump into 2023’s most anticipated cloud migration and modernization trends.