The problem with the cloud
Cloud migration is the process of moving an application from an on-premise server to a cloud configuration. Often, the migration itself is the focus, and there is little time to devote to optimizing every application during the migration process. Instead, they are ‘lifted and shifted’ to the cloud as-is. They are optimized enough to function, but often they do not work the same as a wholly-new, cloud-native application.
Gartner predicts that by 2024, nearly all legacy applications moved to the cloud will require optimization.
The problem with this is that as time goes on, businesses continue to channel resources to supporting these legacy applications, and keeping them functioning to secure business continuity. More money is sunk in lifted-and-shifted non-optimized applications, as businesses delay updating, upgrading, and modernization – and lose out on many of the benefits that led them to cloud adoption in the first place.
That’s where cloud app modernization comes in.
What is cloud app modernization?
With cloud app modernization, businesses can extend the value of their cloud investment, while improving efficiency, security, and speed.
Optimizing systems, like cloud utilization, is particularly important to businesses that have been experiencing difficulties. Travel and hospitality businesses were just beginning to rebound from the effects of the global pandemic. Now, with a looming recession, business travel is already being eliminated for the upcoming year. The Global Business Travel Association has pushed back its estimate for a full recovery of business travel to pre-pandemic levels by 18 months, from 2024 to 2026.
Red Flags: Signs That You Need Cloud App Modernization
- Slow application development and delivery.
- More resources devoted to maintenance.
- Difficulty staffing legacy application support.
- More security issues: both volume and severity.
- Cloud cost creep.
Cloud app modernization is a multi-phase, resource-intensive project – but one that is necessary for the overall health of your future business. If your organization is considering cloud app modernization, consider partnering with e-Core. Leverage our history of successful cloud app modernization with world-class partners and maximize the benefits of your cloud investment today.
Benefits of Cloud App Modernization
- 10% to 30% cost savings
- 4x faster deployment of new solutions
- 18-36 months to positive ROI
- Easier regulatory compliance
- Upgraded security / reduced risk
Even with these benefits, it can be difficult to build alignment across different stakeholders in the company, to get the support you need for a successful cloud app modernization project.
Challenges to Building Alignment
FINANCE: MONEY
The finance department may fear the expense of the initial investment in cloud app modernization. They must secure the funds, budget the resources, and take responsibility for the financial outcomes of the project.
OPERATIONS: DISRUPTION
Operations has a primary responsibility to keep the lights on. This department needs to make sure that critical core systems are working properly, and are accessible to employees, so that the work of the business is not interrupted.
TECHNOLOGY: SECURITY
Any change in a company’s technological profile will affect their security profile. This means that every change must be evaluated carefully to ensure that new risks and vulnerabilities are identified and mitigated before they become an issue for the organization.
An external partner, like e-Core, can help to improve communication and project management throughout the organization. Large, transformative strategies like cloud app modernization are ideal for enlisting a third-party to provide resources and expertise, allowing your business to focus on core competencies.
Critical Elements of a Winning Business Case
1. PROBLEM STATEMENT
Create an elevator pitch – 3-5 sentences – that describes the current issues with cloud applications. Give yourself time to track relevant KPIs and present them as data. For example:
30%
increase in cloud costs.
25%
increase in application development and delivery.
10%
increase in maintenance costs year over year.
5x
increase in cyberattacks and 30% increase in downtime
2. ROADMAP OVERVIEW
Draw a clear line from current state to an ideal future state, showing how (at a very high level) a cloud app modernization project could be rolled out. A visual can be very powerful at this point, clarifying complex ideas and distilling a process down to its most basic elements.
3. PROJECT ROLLOUT
Don’t make the mistake of proposing a complete modernization of every app and service in the company’s cloud all at once. Instead, create a phased strategy that reflects both the priority of each app in relation to one another, and a way to mitigate dependencies between apps to ensure business continuity.
4. COST-BENEFIT ANALYSIS
Using the KPIs from the problem statement, create a value-driven cost-benefit analysis overview. This should include an estimated cost of resources for each phase of the project, and the expected ROI of the investment. A key part of this is an estimate of speed-to-value: when will the expected financial benefits of the change be realized by the company?
In this section, it is important to address the opportunity cost of delay. The easier, and therefore often more attractive choice, is to avoid disruption and change. The cost-benefit analysis should include a statement on what costs the company will incur if the cloud app modernization project is delayed for six months, a year, or three years.
Hospitality Industry Trends
To ensure even more support for your Cloud App Modernization business case, you can tie the importance of optimizing cloud usage to industry trends: ensuring that the investment made in cloud app modernization is directly related to providing a competitive advantage for the business.
TOTAL GUEST EXPERIENCE
Hospitality businesses are reimagining the guest experience to include the entire journey. This means expanding support not just for the time that guests are present in the hotel room or even on the property – but including guest health and wellbeing, local experiences, cultural exploration, and more.
Cloud app modernization enables this expanded focus because by improving data gathering, integrating information from a variety of sources, and measuring customer satisfaction and activities throughout a connected stay.
PERSONALIZATION
81% of consumers want brands to understand them better, and know when (and when not) to approach them. Providing a personalized experience for guests connects a positive experience to the brand, and invites increased spend and customer retention.
Cloud app modernization enables hyper-personalized customer experiences by ensuring applications are optimized to incorporate real-time data, which can be used to consistently update user information and preferences for better personalized experiences.
CONNECTING GUEST AND EMPLOYEE EXPERIENCES
Legacy cloud applications are difficult to integrate and use for innovative purposes. But when cloud applications are modernized with new functionality and integratability in mind, the possibilities of how a hospitality company can create connected experiences throughout their ecosystem are endless.
For example, a tablet-based point of sale solution can boost food and beverage sales in room, and throughout common spaces in the hotel. Housekeeping can update front desk as to the status of tasks completed to provide seamless availability notifications to guests, as staff focus on more personal interactions instead of repetitive tasks.
The primary point that a cloud app modernization business case should convey is that travel and hospitality providers need to provide thoughtful, connected experiences for their customers: and that these experiences are difficult or impossible to provide on legacy software.
Creating a compelling business case isn’t easy – but it is absolutely critical, to gain the support needed from key stakeholders to complete a cloud app modernization project successfully. If you are considering cloud app modernization at your organization, talk to e-Core.
e-Core has the skills, experience, and access to top talent that you need to get your cloud app modernization project rolling, anticipate and avoid issues, and minimize disruption to your team and your business. Contact e-Core today!
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