In my recent blog on digital transformation, I suggested not looking at migration on an application-by-application basis. But rather as a portfolio activity. This raises the question, is migration an all or nothing solution? Do I need to move all applications to the cloud if I move one?
... is migration an all or nothing solution?Enterprises have multiple options from which to source information technology services. These options are generally placed in one of three buckets:
Traditional Data Center In a traditional data center, the enterprise pays for ownership of all the hardware and software. They also pay the salaries and benefits for the required operations staff. In this model, the enterprise has complete and total control of IT governance.
Managed Outsource Arrangement In a managed outsourcing arrangement, the enterprise pays a third party to provide IT hardware, software and professional services. In this model, the enterprise retains IT governance control through the negotiation and enforcement of a binding contract (Service Level Agreement) with the managed service provider (MSP). The enterprise also pays all the costs incurred by the MSP plus a negotiated profit. This option is cheaper than the traditional data center if the MSP is more efficient than the contracting enterprise in the delivery of the contracted services.
Cloud In the cloud computing option, the cloud service provider (CSP) pays for ownership of all hardware and software. The CSP also funds the salaries and benefits for the required operations staff. In this model, the CSP has complete and total control of IT governance.
The enterprise must weigh the cost, benefits and shortcomings of these three options for each of the corporate business processes or applications and for the entire application portfolio. That comparison is done on an application-by-application basis…with all applications reviewed at one time during an entire-portfolio review…not strung out over time in stovepiped chunks of the enterprise. Migration target environment decisions should be done based on a total ROI and business value analysis at the enterprise-wide level. This is why some applications should go to the cloud, some should be hosted by a MSP and others should remain in a traditional data center environment. Signing on for digital transformation does not mean every application must transition to the cloud, but it does mean you look at the entire enterprise application portfolio to make an informed decision.
... you look at the entire enterprise application portfolio to make an informed decision.Processes and tools, like those offered in Cloud ASCEND, allow decision makers to make data-driven choices as they navigate the digital transformation process.