business case for cloud computing presentation

What is cloud computing?

With cloud computing, organizations essentially buy a range of services offered by cloud service providers (CSPs). The CSP’s servers host all the client’s applications. Organizations can enhance their computing power more quickly and cheaply via the cloud than by purchasing, installing, and maintaining their own servers.

The cloud-computing model is helping organizations to scale new digital solutions with greater speed and agility—and to create value more quickly. Developers use cloud services to build and run custom applications and to maintain infrastructure and networks for companies of virtually all sizes—especially large global ones. CSPs offer services, such as analytics, to handle and manipulate vast amounts of data. Time to market accelerates, speeding innovation to deliver better products and services across the world.

What are examples of cloud computing’s uses?

Get to know and directly engage with senior mckinsey experts on cloud computing.

Brant Carson is a senior partner in McKinsey’s Vancouver office; Chandra Gnanasambandam and Anand Swaminathan are senior partners in the Bay Area office; William Forrest is a senior partner in the Chicago office; Leandro Santos is a senior partner in the Atlanta office; Kate Smaje is a senior partner in the London office.

Cloud computing came on the scene well before the global pandemic hit, in 2020, but the ensuing digital dash  helped demonstrate its power and utility. Here are some examples of how businesses and other organizations employ the cloud:

• A fast-casual restaurant chain’s online orders multiplied exponentially during the 2020 pandemic lockdowns, climbing to 400,000 a day, from 50,000. One pleasant surprise? The company’s online-ordering system could handle the volume—because it had already migrated to the cloud . Thanks to this success, the organization’s leadership decided to accelerate its five-year migration plan to less than one year.
• A biotech company harnessed cloud computing to deliver the first clinical batch of a COVID-19 vaccine candidate for Phase I trials in just 42 days—thanks in part to breakthrough innovations using scalable cloud data storage and computing  to facilitate processes ensuring the drug’s safety and efficacy.
• Banks use the cloud for several aspects of customer-service management. They automate transaction calls using voice recognition algorithms and cognitive agents (AI-based online self-service assistants directing customers to helpful information or to a human representative when necessary). In fraud and debt analytics, cloud solutions enhance the predictive power of traditional early-warning systems. To reduce churn, they encourage customer loyalty through holistic retention programs managed entirely in the cloud.
• Automakers are also along for the cloud ride . One company uses a common cloud platform that serves 124 plants, 500 warehouses, and 1,500 suppliers to consolidate real-time data from machines and systems and to track logistics and offer insights on shop floor processes. Use of the cloud could shave 30 percent off factory costs by 2025—and spark innovation at the same time.

That’s not to mention experiences we all take for granted: using apps on a smartphone, streaming shows and movies, participating in videoconferences. All of these things can happen in the cloud.

Learn more about our Cloud by McKinsey , Digital McKinsey , and Technology, Media, & Telecommunications  practices.

How has cloud computing evolved?

Going back a few years, legacy infrastructure dominated IT-hosting budgets. Enterprises planned to move a mere 45 percent of their IT-hosting expenditures to the cloud by 2021. Enter COVID-19, and 65 percent of the decision makers surveyed by McKinsey increased their cloud budgets . An additional 55 percent ended up moving more workloads than initially planned. Having witnessed the cloud’s benefits firsthand, 40 percent of companies expect to pick up the pace of implementation.

The cloud revolution has actually been going on for years—more than 20, if you think the takeoff point was the founding of Salesforce, widely seen as the first software as a service (SaaS) company. Today, the next generation of cloud, including capabilities such as serverless computing, makes it easier for software developers to tweak software functions independently, accelerating the pace of release, and to do so more efficiently. Businesses can therefore serve customers and launch products in a more agile fashion. And the cloud continues to evolve.

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Cost savings are commonly seen as the primary reason for moving to the cloud but managing those costs requires a different and more dynamic approach focused on OpEx rather than CapEx. Financial-operations (or FinOps) capabilities  can indeed enable the continuous management and optimization of cloud costs . But CSPs have developed their offerings so that the cloud’s greatest value opportunity is primarily through business innovation and optimization. In 2020, the top-three CSPs reached $100 billion  in combined revenues—a minor share of the global $2.4 trillion market for enterprise IT services—leaving huge value to be captured. To go beyond merely realizing cost savings, companies must activate three symbiotic rings of cloud value creation : strategy and management, business domain adoption, and foundational capabilities.

What’s the main reason to move to the cloud?

The pandemic demonstrated that the digital transformation can no longer be delayed—and can happen much more quickly than previously imagined. Nothing is more critical to a corporate digital transformation than becoming a cloud-first business. The benefits are faster time to market, simplified innovation and scalability, and reduced risk when effectively managed. The cloud lets companies provide customers with novel digital experiences—in days, not months—and delivers analytics absent on legacy platforms. But to transition to a cloud-first operating model, organizations must make a collective effort that starts at the top. Here are three actions CEOs can take to increase the value their companies get from cloud computing :

• Establish a sustainable funding model.
• Develop a new business technology operating model.
• Set up policies to attract and retain the right engineering talent.

How much value will the cloud create?

Fortune 500 companies adopting the cloud could realize more than $1 trillion in value  by 2030, and not from IT cost reductions alone, according to McKinsey’s analysis of 700 use cases.

For example, the cloud speeds up design, build, and ramp-up, shortening time to market when companies have strong DevOps (the combination of development and operations) processes in place; groups of software developers customize and deploy software for operations that support the business. The cloud’s global infrastructure lets companies scale products almost instantly to reach new customers, geographies, and channels. Finally, digital-first companies use the cloud to adopt emerging technologies and innovate aggressively, using digital capabilities as a competitive differentiator to launch and build businesses .

If companies pursue the cloud’s vast potential in the right ways, they will realize huge value. Companies across diverse industries have implemented the public cloud and seen promising results. The successful ones defined a value-oriented strategy across IT and the business, acquired hands-on experience operating in the cloud, adopted a technology-first approach, and developed a cloud-literate workforce.

Learn more about our Cloud by McKinsey and Digital McKinsey practices.

What is the cloud cost/procurement model?

Some cloud services, such as server space, are leased. Leasing requires much less capital up front than buying, offers greater flexibility to switch and expand the use of services, cuts the basic cost of buying hardware and software upfront, and reduces the difficulties of upkeep and ownership. Organizations pay only for the infrastructure and computing services that meet their evolving needs. But an outsourcing model  is more apt than other analogies: the computing business issues of cloud customers are addressed by third-party providers that deliver innovative computing services on demand to a wide variety of customers, adapt those services to fit specific needs, and work to constantly improve the offering.

What are cloud risks?

The cloud offers huge cost savings and potential for innovation. However, when companies migrate to the cloud, the simple lift-and-shift approach doesn’t reduce costs, so companies must remediate their existing applications to take advantage of cloud services.

For instance, a major financial-services organization  wanted to move more than 50 percent of its applications to the public cloud within five years. Its goals were to improve resiliency, time to market, and productivity. But not all its business units needed to transition at the same pace. The IT leadership therefore defined varying adoption archetypes to meet each unit’s technical, risk, and operating-model needs.

Legacy cybersecurity architectures and operating models can also pose problems when companies shift to the cloud. The resulting problems, however, involve misconfigurations rather than inherent cloud security vulnerabilities. One powerful solution? Securing cloud workloads for speed and agility : automated security architectures and processes enable workloads to be processed at a much faster tempo.

What kind of cloud talent is needed?

The talent demands of the cloud differ from those of legacy IT. While cloud computing can improve the productivity of your technology, it requires specialized and sometimes hard-to-find talent—including full-stack developers, data engineers, cloud-security engineers, identity- and access-management specialists, and cloud engineers. The cloud talent model  should thus be revisited as you move forward.

Six practical actions can help your organization build the cloud talent you need :

• Find engineering talent with broad experience and skills.
• Balance talent maturity levels and the composition of teams.
• Build an extensive and mandatory upskilling program focused on need.
• Build an engineering culture that optimizes the developer experience.
• Consider using partners to accelerate development and assign your best cloud leaders as owners.
• Retain top talent by focusing on what motivates them.

How do different industries use the cloud?

Different industries are expected to see dramatically different benefits from the cloud. High-tech, retail, and healthcare organizations occupy the top end of the value capture continuum. Electronics and semiconductors, consumer-packaged-goods, and media companies make up the middle. Materials, chemicals, and infrastructure organizations cluster at the lower end.

Nevertheless, myriad use cases provide opportunities to unlock value across industries , as the following examples show:

• a retailer enhancing omnichannel  fulfillment, using AI to optimize inventory across channels and to provide a seamless customer experience
• a healthcare organization implementing remote heath monitoring to conduct virtual trials and improve adherence
• a high-tech company using chatbots to provide premier-level support combining phone, email, and chat
• an oil and gas company employing automated forecasting to automate supply-and-demand modeling and reduce the need for manual analysis
• a financial-services organization implementing customer call optimization using real-time voice recognition algorithms to direct customers in distress to experienced representatives for retention offers
• a financial-services provider moving applications in customer-facing business domains to the public cloud to penetrate promising markets more quickly and at minimal cost
• a health insurance carrier accelerating the capture of billions of dollars in new revenues by moving systems to the cloud to interact with providers through easier onboarding

The cloud is evolving  to meet the industry-specific needs of companies. From 2021 to 2024, public-cloud spending on vertical applications (such as warehouse management in retailing and enterprise risk management in banking) is expected to grow by more than 40 percent annually. Spending on horizontal workloads (such as customer relationship management) is expected to grow by 25 percent. Healthcare and manufacturing organizations, for instance, plan to spend around twice as much on vertical applications as on horizontal ones.

Learn more about our Cloud by McKinsey , Digital McKinsey , Financial Services , Healthcare Systems & Services , Retail , and Technology, Media, & Telecommunications  practices.

What are the biggest cloud myths?

Views on cloud computing can be clouded by misconceptions. Here are seven common myths about the cloud —all of which can be debunked:

• The cloud’s value lies primarily in reducing costs.
• Cloud computing costs more than in-house computing.
• On-premises data centers are more secure than the cloud.
• Applications run more slowly in the cloud.
• The cloud eliminates the need for infrastructure.
• The best way to move to the cloud is to focus on applications or data centers.
• You must lift and shift applications as-is or totally refactor them.

How large must my organization be to benefit from the cloud?

Here’s one more huge misconception: the cloud is just for big multinational companies. In fact, cloud can help make small local companies become multinational. A company’s benefits from implementing the cloud are not constrained by its size. In fact, the cloud shifts barrier to entry skill rather than scale, making it possible for a company of any size to compete if it has people with the right skills. With cloud, highly skilled small companies can take on established competitors. To realize the cloud’s immense potential value fully, organizations must take a thoughtful approach, with IT and the businesses working together.

For more in-depth exploration of these topics, see McKinsey’s Cloud Insights collection. Learn more about Cloud by McKinsey —and check out cloud-related job opportunities if you’re interested in working at McKinsey.

Articles referenced include:

• “ Six practical actions for building the cloud talent you need ,” January 19, 2022, Brant Carson , Dorian Gärtner , Keerthi Iyengar, Anand Swaminathan , and Wayne Vest
• “ Cloud-migration opportunity: Business value grows, but missteps abound ,” October 12, 2021, Tara Balakrishnan, Chandra Gnanasambandam , Leandro Santos , and Bhargs Srivathsan
• “ Cloud’s trillion-dollar prize is up for grabs ,” February 26, 2021, Will Forrest , Mark Gu, James Kaplan , Michael Liebow, Raghav Sharma, Kate Smaje , and Steve Van Kuiken
• “ Unlocking value: Four lessons in cloud sourcing and consumption ,” November 2, 2020, Abhi Bhatnagar , Will Forrest , Naufal Khan , and Abdallah Salami
• “ Three actions CEOs can take to get value from cloud computing ,” July 21, 2020, Chhavi Arora , Tanguy Catlin , Will Forrest , James Kaplan , and Lars Vinter

Want to know more about cloud computing?

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Describe Cloud Business Case Analysis

Understand a cloud business case analysis through a business case analysis, analysis of alternatives, and non-financial operational benefits.

Learning objectives

After completing this module, you'll be able to describe:

• How to perform a Business Case Analysis (BCA).
• How the analysis of alternatives (AoA) process works.
• How Non-financial operational benefits (NFO) work.
• How to perform a risk analysis.
• How to plan an adoption strategy for cloud computing technologies.

Prerequisites

• You should have an understanding of why business case analysis is necessary.
• You should understand several of the factors that go into making major decisions on cloud computing workloads.
• Introduction min
• Perform a business case analysis (BCA) min
• Describe an analysis of alternatives (AoA) min
• Explain non-financial operational benefits (NFOs) min
• Perform a risk analysis min
• Describe cloud adoption strategy planning min
• Knowledge check min
• Summary min

• United States
• United Kingdom

By David Linthicum , Contributor, InfoWorld |

3 secrets to creating a business case for cloud computing

If you hope to convince management about the cloud -- with successful results -- follow these key steps.

We've all seen the PowerPoint presentations that show the business advantages of cloud computing: the ability to avoid hardware and software purchases (opex vs. capex), speed to deployment, elasticity, and so on. However, unless you're prepared to provide real numbers that define real value, that's so much fluff to those in the executive suite.

As I develop these business cases for enterprises, I've found some commonality or emerging patterns to consider. Here are my top three secrets to developing your cloud computing business case and getting it accepted.

[ In the data center today, the action is in the private cloud. InfoWorld's experts take you through what you need to know to do it right in our " Private Cloud Deep Dive " PDF special report. | Also check out our " Cloud Security Deep Dive ," our " Cloud Storage Deep Dive ," and our " Cloud Services Deep Dive ." ]

First, define the cost of what's not working. Any CIO will tell you that everything is going well in his or her IT shop. That's almost never the case, and the underlying inefficiency has a real cost -- one you need to define up front. In larger organizations, you'll find it's millions of dollars a year in lost productivity to the business.

Second, move beyond the buzzwords to the heart of the business problems. As cloud geeks, we tend to move in packs, speak the same language, and share a worldview. However, your enterprise is a unique problem domain, so you first need to define the individual problems that the cloud can address before you can sell the general advantages of cloud computing.

Third, and most important, understand that the business case needs to be specific and tied to an overall plan. The path to success is to define what's wrong, determine how to fix it, and demonstrate why cloud computing is the right path to fix it. If you can't outline that strategy, you don't have a business case. To do so, you need very specific information that describes the current state. Then, you need very specific information that delineates a path to the fix. Finally, you need very specific information that points out the cost advantages of reaching the target state. All of this feeds into a detailed plan. Lacking that, you're not creating a business case for cloud computing, but making an ungrounded suggestion.

For some reason, many people who create business cases for moving to cloud-based platforms believe they can do so using very general information. You can spot such naive proponents by their tendency to quote Gartner and other analyst groups to make their case -- rather than cite the internal issues that should be driving any investment or change. Don't be one of those people if you actually want your business to move the cloud computing and benefit from doing so.

This article, " 3 secrets to creating a business case for cloud computing ," originally appeared at InfoWorld.com . Read more of David Linthicum's Cloud Computing blog and track the latest developments in cloud computing at InfoWorld.com. For the latest business technology news, follow InfoWorld.com on Twitter .

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David S. Linthicum is an internationally recognized industry expert and thought leader. He has authored 13 books on computing, the latest of which is An Insider’s Guide to Cloud Computing . David’s views are his own.

Copyright © 2012 IDG Communications, Inc.

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What is cloud computing? Everything you need to know about the cloud explained

What is cloud computing, in simple terms?

Cloud computing is the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet ("the cloud") to offer faster innovation, flexible resources, and economies of scale.

How does cloud computing work?

Rather than owning their own computing infrastructure or data centres, companies can rent access to anything from applications to storage from a cloud service provider.

One benefit of using cloud-computing services is that firms can avoid the upfront cost and complexity of owning and maintaining their own IT infrastructure, and instead simply pay for what they use, when they use it.

In turn, providers of cloud-computing services can benefit from significant economies of scale by delivering the same services to a wide range of customers.

What cloud-computing services are available?

Cloud-computing services cover a vast range of options now, from the basics of storage, networking and processing power, through to natural language processing and artificial intelligence as well as standard office applications. Pretty much any service that doesn't require you to be physically close to the computer hardware that you are using can now be delivered via the cloud –  even quantum computing .

What are examples of cloud computing?

Cloud computing underpins a vast number of services. That includes consumer services like Gmail or the cloud backup of the photos on your smartphone, though to the services that allow large enterprises to host all their data and run all of their applications in the cloud. For example, Netflix  relies on cloud-computing  services to run its its video-streaming service and its other business systems, too.

Cloud computing is becoming the default option for many apps: software vendors are increasingly offering their applications as services over the internet rather than standalone products as they try to switch to a subscription model. However, there are potential downsides to cloud computing, in that it can also introduce new costs and new risks for companies using it.

Why is it called cloud computing?

A fundamental concept behind cloud computing is that the location of the service, and many of the details such as the hardware or operating system on which it is running, are largely irrelevant to the user. It's with this in mind that the metaphor of the cloud was borrowed from old telecoms network schematics, in which the public telephone network (and later the internet) was often represented as a cloud to denote that the location didn't matter – it was just a cloud of stuff. This is an over-simplification of course; for many customers, location of their services and data remains a key issue.

What is the history of cloud computing?

Cloud computing as a term has been around since the early 2000s, but the concept of computing as a service has been around for much, much longer – as far back as the 1960s, when computer bureaus would allow companies to rent time on a mainframe, rather than have to buy one themselves.

These 'time-sharing' services were largely overtaken by the rise of the PC, which made owning a computer much more affordable, and then in turn by the rise of corporate data centres where companies would store vast amounts of data.

But the concept of renting access to computing power has resurfaced again and again – in the application service providers, utility computing, and grid computing of the late 1990s and early 2000s. This was followed by cloud computing, which really took hold with the emergence of software as a service and hyperscale cloud-computing providers such as Amazon Web Services.

How important is the cloud?

Building the infrastructure to support cloud computing now accounts for a significant chunk of all IT spending, while spending on traditional, in-house IT slides as computing workloads continue to move to the cloud, whether that is public cloud services offered by vendors or private clouds built by enterprises themselves.

Indeed, it's increasingly clear that when it comes to enterprise computing platforms,  like it or not, the cloud has won .

Tech analyst Gartner predicts that as much as half of spending across application software, infrastructure software, business process services and system infrastructure markets will have shifted to the cloud by 2025, up from 41% in 2022. It estimates that almost two-thirds of spending on application software will be via cloud computing, up from 57.7% in 2022.

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That's a shift that only gained momentum in 2020 and 2021 as businesses accelerated their digital transformation plans during the pandemic. The lockdowns throughout the pandemic showed companies how important it was to be able to access their computing infrastructure, applications and data from wherever their staff were working – and not just from an office.

Gartner said that demand for integration capabilities, agile work processes and composable architecture will drive the continued shift to the cloud.

The scale of cloud spending continues to rise. For the full year 2021, tech analyst IDC expects cloud infrastructure spending to have grown 8.3% compared to 2020 to $71.8 billion, while non-cloud infrastructure is expected to grow just 1.9% to $58.4 billion. Long term, the analyst expects spending on compute and storage cloud infrastructure to see a compound annual growth rate of 12.4% over the 2020-2025 period, reaching $118.8 billion in 2025, and it will account for 67.0% of total compute and storage infrastructure spend. Spending on non-cloud infrastructure will be relatively flat in comparison and reach $58.6 billion in 2025.

All predictions around cloud-computing spending are pointing in the same direction, even if the details are slightly different. The momentum they are describing is the same: tech analyst Canalys reports that worldwide cloud infrastructure services expenditure topped $50 billion in a quarter for the first time in Q4 2021. For the full year, it has cloud infrastructure services spending growing 35% to $191.7 billion

Canalys argues that there is already a new growth opportunity for cloud on the horizon, in the form of augmented and virtual reality and the metaverse. "This will be a significant driver for both cloud services spend and infrastructure deployment over the next decade. In many ways, the metaverse will resemble the internet today, with enhanced capabilities and an amplified compute consumption rate," the analyst said .

What are the core elements of cloud computing?

Cloud computing can be broken down into a number of different constituent elements, focusing on different parts of the technology stack and different use cases. Let's take a look at some of the best known in a bit more detail.

What is Infrastructure as a Service?

Infrastructure as a Service (IaaS) refers to the fundamental building blocks of computing that can be rented: physical or virtual servers, storage and networking. This is attractive to companies that want to build applications from the very ground up and want to control nearly all the elements themselves, but it does require firms to have the technical skills to be able to orchestrate services at that level. 

What is Platform as a Service?

Platform as a Service (PaaS) is the next layer up – as well as the underlying storage, networking, and virtual servers, this layer also includes the tools and software that developers need to build applications on top, which could include middleware, database management, operating systems, and development tools.

What is Software as a Service?

Software as a Service (SaaS) is the delivery of applications as a service, probably the version of cloud computing that most people are used to on a day-to-day basis. The underlying hardware and operating system is irrelevant to the end user, who will access the service via a web browser or app; it is often bought on a per-seat or per-user basis.

SaaS is the largest chunk of cloud spending simply because the variety of applications delivered via SaaS is huge, from CRM such as Salesforce, through to Microsoft's Office 365. And while the whole market is growing at a furious rate, it's the IaaS and PaaS segments that have consistently grown at much faster rates, according to analyst IDC: "This highlights the increasing reliance of enterprises on a cloud foundation built on cloud infrastructure, software-defined data, compute and governance solutions as a Service, and cloud-native platforms for application deployment for enterprise IT internal applications." IDC predicts that IaaS and PaaS will continue growing at a higher rate than the overall cloud market "as resilience, flexibility, and agility guide IT platform decisions".

What is multi-cloud computing?

While the big cloud vendors would be very happy to provide all the computing needs of their enterprise customers, increasingly businesses are looking to spread the load across a number of suppliers.  All of this has lead to the rise of multi-cloud . Part of this approach is to avoid being locked in to just one vendor (which can lead to the sort of high costs and inflexibility that the cloud is often claimed to avoid), and part of it is to find the best mix of technologies across the industry.

That means being able to connect and integrate cloud services from multiple vendors is going to be a new and increasing challenge for business. Problems here include skills shortages (a lack of workers with expertise across multiple clouds) and workflow differences between cloud environments. Customers will also want to manage all their different cloud infrastructure from one place, make it easy to build applications and services and then move them, and ensure that security tools can work across multiple clouds – none of which is especially easy right now.

What are the benefits of cloud computing?

The exact benefits will vary according to the type of cloud service being used but, fundamentally, using cloud services means companies not having to buy or maintain their own computing infrastructure.

No more buying servers, updating applications or operating systems, or decommissioning and disposing of hardware or software when it is out of date, as it is all taken care of by the supplier. For commodity applications, such as email, it can make sense to switch to a cloud provider, rather than rely on in-house skills. A company that specializes in running and securing these services is likely to have better skills and more experienced staff than a small business could afford to hire, so cloud services may be able to deliver a more secure and efficient service to end users.

Using cloud services means companies can move faster on projects and test out concepts without lengthy procurement and big upfront costs, because firms only pay for the resources they consume. This concept of business agility is often mentioned by cloud advocates as a key benefit. The ability to spin up new services without the time and effort associated with traditional IT procurement should mean that it is easier to get going with new applications faster. And if a new application turns out to be wildly popular, the elastic nature of the cloud means it is easier to scale it up fast.

For a company with an application that has big peaks in usage, such as one that is only used at a particular time of the week or year, it might make financial sense to have it hosted in the cloud, rather than have dedicated hardware and software laying idle for much of the time. Moving to a cloud-hosted application for services like email or CRM could remove a burden on internal IT staff, and if such applications don't generate much competitive advantage, there will be little other impact. Moving to a services model also moves spending from capital expenditure (capex) to operational expenditure (opex), which may be useful for some companies.

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What are the advantages and disadvantages of cloud computing?

Cloud computing is not necessarily cheaper than other forms of computing, just as renting is not always cheaper than buying in the long term. If an application has a regular and predictable requirement for computing services it may be more economical to provide that service in-house.

Some companies may be reluctant to host sensitive data in a service that is also used by rivals. Moving to a SaaS application may also mean you are using the same applications as a rival, which might make it hard to create any competitive advantage if that application is core to your business.

While it may be easy to start using a new cloud application, migrating existing data or apps to the cloud might be much more complicated and expensive. And it seems there is now something of a  shortage in cloud skills , with staff with DevOps and multi-cloud monitoring and management knowledge in particularly short supply.

In one report, a significant proportion of experienced cloud users  said they thought upfront migration costs  ultimately outweigh the long-term savings created by IaaS.

And of course, you can only access your applications if you have an internet connection.

What is cloud-computing adoption doing to IT budgets?

Cloud computing tends to shift spending from capex to opex, as companies buy computing as a service rather than in the form of physical servers. This may allow companies to avoid large increases in IT spending which would traditionally be seen with new projects; using the cloud to make room in the budget might be easier than going to the CFO and looking for more money.

Of course, this doesn't mean that cloud computing is always or necessarily cheaper that keeping applications in-house; for applications with a predictable and stable demand for computing power, it might be cheaper (from a processing power point of view at least) to keep them in-house.

• Cloud computing spending is growing even faster than expected  

How do you build a business case for cloud computing?

To build a  business case for moving systems to the cloud , you first need to understand what your existing infrastructure actually costs. There's a lot to factor in: obvious things like the cost of running data centres, and extras such as leased lines. The cost of physical hardware – servers and details of specifications like CPUs, cores and RAM, plus the cost of storage. You'll also need to calculate the cost of applications, whether you plan to dump them, re-host them in the cloud unchanged, completely rebuilding them for the cloud, or buy an entirely new SaaS package. Each of these options will have different cost implications. The cloud business case also needs to include people costs (often second only to the infrastructure costs) and more nebulous concepts like the benefit of being able to provide new services faster. Any cloud business case should also factor in the potential downsides, including the risk of being locked into one vendor for your tech infrastructure (see multi-cloud, above).

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Cloud-computing adoption

Analysts argue that as the cloud now underpins most new technological disruptions in everything from mobile banking to healthcare, usage is only going grow. It's hard to see many new technology projects being delivered that don't harness the cloud in some way. Gartner says that more than 85% of organizations will embrace a cloud-first principle by 2025 and will not be able to fully execute on their digital strategies without it. The analyst says new workloads deployed in a cloud-native environment will be pervasive, not just popular, and anything non-cloud will be considered legacy. By 2025, Gartner estimates that over 95% of new digital workloads will be deployed on cloud-native platforms, up from 30% in 2021.

And if that sounds unrealistic, it may be that figures on adoption of cloud depend on who you talk to inside an organisation. Not all cloud spending will be driven centrally by the CIO: cloud services are relatively easy to sign-up for, so business managers can start using them, and pay out of their own budget, without needing to inform the IT department. This can enable businesses to move faster, but also can create security risks if the use of apps is not managed.

Adoption will also vary by application: cloud-based email is much easier to adopt than a new finance system, for example. And for systems such as supply chain management, that are working efficiently as they are, there will be less short-term pressure to do a potentially costly and risky shift to the cloud.

What about cloud-computing security?

Many companies remain concerned about the security of cloud services, although breaches of security are rare. How secure you consider cloud computing to be will largely depend on how secure your existing systems are. In-house systems managed by a team with many other things to worry about are likely to be more leaky than systems monitored by a cloud provider's engineers dedicated to protecting that infrastructure.

However, concerns do remain about security, especially for companies moving their data between many cloud services, which has led to growth in  cloud security tools , which monitor data moving to and from the cloud and between cloud platforms. These tools can identify fraudulent use of data in the cloud, unauthorised downloads, and malware. There is a financial and performance impact, however: these tools can reduce the return on investment of the cloud by 5% to 10%, and impact performance by 5% to 15%. The country of origin of cloud services is also worrying some organisations (see ' Is geography irrelevant when it comes to cloud computing?'  below)

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• Azure confidential computing: Microsoft boosts security for cloud data
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• Security as a Service? We want it, say IT leaders

What is public cloud?

Public cloud is the classic cloud-computing model, where users can access a large pool of computing power over the internet (whether that is IaaS, PaaS, or SaaS). One of the significant benefits here is the ability to rapidly scale a service. The cloud-computing suppliers have vast amounts of computing power, which they share out between a large number of customers – the 'multi-tenant' architecture. Their huge scale means they have enough spare capacity that they can easily cope if any particular customer needs more resources, which is why it is often used for less-sensitive applications that demand a varying amount of resources.

What is private cloud?

Private cloud allows organizations to benefit from some of the advantages of public cloud – but without the concerns about relinquishing control over data and services, because it is tucked away behind the corporate firewall. Companies can control exactly where their data is being held and can build the infrastructure in a way they want – largely for IaaS or PaaS projects – to give developers access to a pool of computing power that scales on-demand without putting security at risk. However, that additional security comes at a cost, as few companies will have the scale of AWS, Microsoft or Google, which means they will not be able to create the same economies of scale. Still, for companies that require additional security, private cloud might be a useful stepping stone, helping them to understand cloud services or rebuild internal applications for the cloud, before shifting them into the public cloud.

What is hybrid cloud?

Hybrid cloud is perhaps  where everyone is in reality: a bit of this, a bit of that. Some data in the public cloud, some projects in private cloud, multiple vendors and different levels of cloud usage. 

• Infographic: Companies are turning to hybrid cloud to save money
• What does 'hybrid cloud' mean? It depends on whom you ask
• Managing the multi-cloud: It's complicated

What are the cloud-computing migration costs?

For startups that plan to run all their systems in the cloud, getting started is pretty simple. But the majority of companies, it is not so simple: with existing applications and data, they need to work out which systems are best left running as they are, and which to start moving to cloud infrastructure. This is a potentially risky and expensive move, and migrating to the cloud could cost companies more if they underestimate the scale of such projects.

A survey of 500 businesses that  were early cloud adopters  found that the need to rewrite applications to optimise them for the cloud was one of the biggest costs, especially if the apps were complex or customised. A third of those surveyed cited high fees for passing data between systems as a challenge in moving their mission-critical applications. The skills required for migration are both difficult and expensive to find – and even when organisations could find the right people, they risked them being stolen away by cloud-computing vendors with deep pockets. 

Beyond this, the majority also remained worried about the performance of critical apps, and one in three cited this as a reason for not moving some critical applications.

• Cloud computing migration: More expensive and complicated than you thought
• Technology migrations are more painful, and cloud isn't making them any easier
• Where does the NAS fit in an increasingly cloud-centric world?

Is geography irrelevant when it comes to cloud computing?

Actually, it turns out that is where the cloud really does matter. Geopolitics is forcing significant changes on cloud-computing users and vendors. Firstly, there is the issue of latency: if the application is coming from a data centre on the other side of the planet, or on the other side of a congested network, then you might find it sluggish compared to a local connection. That's the latency problem.

Secondly, there is the issue of data sovereignty. Many companies, particularly in Europe, have to worry about where their data is being processed and stored. European companies are worried that, for example, if their customer data is being stored in data centres in the US or (owned by US companies), it could be accessed by US law enforcement. As a result, the big cloud vendors have been building out a regional data centre network so that organizations can keep their data in their own region.

Some have gone further, effectively detatching some of those datacenters from their main business to make it much harder for US authorities – and others – to demand access to the customer data stored there. The customer data in the data centres is under the control of an independent company, which acts as a "data trustee", and US parents cannot access data at the sites without the permission of customers or the data trustee. Expect to see cloud vendors opening more data centres around the world to cater to customers with requirements to keep data in specific locations.

Cloud security is another issue; the UK government's cyber security agency has warned that government agencies  need to consider the country of origin  when it comes to adding cloud services into their supply chains. While it was warning about antivirus software in particular, the issue is the same for other types of services too.

What is a cloud-computing region? And what is a cloud-computing availability zone?

Cloud-computing services are operated from giant datacenters around the world. AWS divides this up by  'regions' and 'availability zones' . Each AWS region is a separate geographic area, like EU (London) or US West (Oregon), which AWS then further subdivides into what it calls availability zones (AZs). An AZ is composed of one or more datacenters that are far enough apart that in theory a single disaster won't take both offline, but close enough together for business continuity applications that require rapid failover. Each AZ has multiple internet connections and power connections to multiple grids: AWS has over 80 AZs.

Google  uses a similar model , dividing its cloud-computing resources into regions that are then subdivided into zones, which include one or more datacenters from which customers can run their services. It currently over eight zones: Google recommends customers deploy applications across multiple zones and regions to help protect against unexpected failures.

Microsoft Azure  divides its resources slightly differently . It offers regions that it describes as is a "set of datacentres deployed within a latency-defined perimeter and connected through a dedicated regional low-latency network". It also offers 'geographies' typically containing two or more regions, that can be used by customers with specific data-residency and compliance needs "to keep their data and apps close". It also offers availability zones made up of one or more data centres equipped with independent power, cooling and networking.

Cloud computing and power usage

Those data centres are also sucking up a huge amount of power: for example, Microsoft struck a deal with GE to buy all of the output from its new 37-megawatt wind farm in Ireland for the next 15 years in order to power its cloud data centres. Ireland said it now expects data centres to account for  15% of total energy demand by 2026 , up from less than 2% back in 2015.

• Cloud computing: IBM overhauls access rules at Euro data centre
• AWS just sold some of its cloud computing infrastructure in China

Which are the big cloud-computing companies?

When it comes to IaaS and PaaS, there are really only a few giant cloud providers. Leading the way is Amazon Web Services, and then the following pack of Microsoft's Azure, Google, and IBM. According to data from Synergy Research, Amazon, Microsoft and Google continue to attract well over half of worldwide cloud spending, with Q3 market shares of 33%, 20% and 10% respectively. And with growth rates that are higher than the overall market, their share of worldwide revenues continues to grow. However, that still leaves plenty of revenue for the chasing pack of companies – about $17 billion. "Clearly there are challenges with the big three companies lurking in the background, so the name of the game is not competing with them head on,"  said the analyst .

AWS, Azure and Google Cloud – what's the difference?

The big three cloud companies all have their own strengths. AWS is the most established player and was behind Amazon's ability to support huge seasonal swings in demand from consumers. Being first out to market with cloud services and pushing hard to gain market share has made it the market leader, and it continues to innovate. Microsoft's Azure has become an absolutely core part of Microsoft's strategy, and the company has the enterprise history and products to support businesses as they switch to the cloud. Google Cloud is the smallest of the big three players, but clearly has the might of the advertising-to-Android giant behind it.

Who are the other main cloud-computing players?

Beyond the big three there are others, such as Alibaba Cloud, IBM, Dell and Hewlett Packard Enterprise, that all want to be part of the enterprise cloud project. And of course, from giants like Salesforce down to tiny startups, pretty much every software company is a SaaS company now.  

Can cloud computing go wrong?

There are and will continue to be cloud outages. Those outages might happen at a local level because your internet is disrupted either by physical means (a digger cuts your broadband) or because of cyberattacks. But the big vendors have outages too and because, we are all increasingly reliant on their services, when the cloud stops, work stops. Few companies have backup systems to turn to in this situation. So long as cloud vendors keep outages to a minimum, then users will probably consider that using the cloud is more reliable than home-grown apps. But if outages become widespread, that opinion might change.

What is the future of cloud computing?

Cloud computing is reaching the point where it is likely to account for more of enterprise tech spending than the traditional forms of delivering applications and services in-house that have been around for decades. However, use of the cloud is only likely to climb as organisations get more comfortable with the idea of their data being somewhere other than a server in the basement. And now cloud-computing vendors are increasingly pushing cloud computing as an agent of digital transformation instead of focusing simply on cost. Moving to the cloud can help companies rethink business processes and accelerate business change, goes the argument, by helping to break  down data any organisational silos . Some companies that need to boost momentum around their digital transformation programmes might find this argument appealing; others may find enthusiasm for the cloud waning as the costs of making the switch add up.

• Why you're still scared of the Cloud (it's not about security or reliability)
• Cloud computing switch as digital transformation takes priority
• Moving to the cloud? Some advice to consider

Cloud-computing case studies

There are plenty of examples of organisations deciding to go down the cloud-computing route: here are a few examples of recent announcements.

• What's the best way to make the most of the cloud?
• US Air Force plots IT overhaul, aims for cloud
• DuluxGroup paints a future of procurement in the cloud
• Marketo to migrate to Google Cloud as part of multi-year deal
• AWS infrastructure is now behind three main streaming media providers
• American Airlines to move consumer-facing apps to IBM Cloud, says Cloud Foundry key

Previous coverage

The Art of the Hybrid Cloud

Cloud computing is gobbling up more of the services that power businesses. But, some have privacy, security, and regulatory demands that preclude the public cloud. Here's how to find the right mix.

• Public cloud, private cloud, or hybrid cloud: What's the difference?

Trying to understand and articulate the differences between public, private, and hybrid cloud? Here's a quick breakdown.

Read more on cloud computing

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Cloud Computing Business Plan

It seems that you like this template, cloud computing business plan presentation, free google slides theme, powerpoint template, and canva presentation template.

Presenting your business plan is a key step to ensure the achievement of goals and guarantee success, so it is important that you have adequate resources. Discover this sophisticated template with which you can communicate your cloud computing business plan, explaining the market analysis and your management, marketing, operational and financial plan. Leverage resources like infographics, charts, and timelines to get your project off the ground and impress your clients.

Features of this template

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Cloud economics

Successfully build your cloud business case with key financial and technical guidance from Azure.

Get the most value from your Azure investment

Discover technical and financial flexibility, efficiencies, and capabilities on the cloud that aren’t possible with on-premises IT infrastructure. Choose the right short- and long-term cloud solutions for your needs and get greater return on your cloud business investment with key financial and technical guidance from Azure and best practices from top organizations.

Why are companies moving to the cloud?

Reduced datacenter footprint.

Streamline operations and focus on what matters most for your business—like expediting app development—by reducing your datacenter footprint.

OPEX pricing models

Enable future growth with flexible, pay-per-use, on-demand cloud benefits and take advantage of an operational expenditure model rather than a traditional capital expenditure model.

Staff productivity

Reduce downtime and free up your IT staff from maintenance and patching tasks to spend more time optimizing and innovating.

Sustainability

Build a clean-energy future and make progress toward your sustainability and business goals with sustainable technologies from Azure.

Scalability

Scale elastically by delivering the right amount of IT resources—for example, more or less computing power, storage, bandwidth—right when they’re needed, and from the right geographic location.

Security and compliance

Build resilience and meet compliance requirements proactively— with security that’s built from the ground up, backed by a team of experts, and trusted by enterprises, governments, and startups.

Availability

Ensure business continuity for mission-critical systems that cannot tolerate interruption in service with high-availability cloud infrastructure from Azure.

Optimization

Boost workload, operational, and cost efficiencies with free, enterprise-grade management tools, cost-saving offers, and innovative managed services from Azure.

Business Value of Microsoft Azure Customer Enablement Tools, Resources, and Programs

Based on interviews with study participants seeking to maximize the value of their Microsoft Azure services, IDC calculated that they'll achieve strong relative value with Azure Customer Enablement Resources at an annual average of $291,800 per 100 Azure virtual machines (VMs).

Explore key tips from Azure experts

Getting started.

Build a successful business case and maximize the full benefit of your cloud investment. Get started with key guidelines for common technical and financial considerations—demystified by Azure experts.

Technical considerations

Understand the basic differences between on-premises and cloud infrastructure and learn which factors are technically most critical to consider for optimizing both your technical solutions and your cost structure.

Financial considerations

Learn how to use the cloud to make your IT cost structure more flexible to help you weather unexpected market changes and take advantage of new business opportunities quickly.

Tools and templates

Estimate your cloud cost savings—compared to pay-as-you-go pricing—by using  Azure benefits and incentives  for VMs like the  Azure Hybrid Benefit , the  Azure savings plan for compute , and  reserved instances . Learn how with the Azure Virtual Machine cost estimator, an Excel-backed Power BI template:

Estimate the costs for your Azure projects using the  Azure pricing calculator  and the  Total Cost of Ownership (TCO) calculator .

Monitor and analyze your bill with  Microsoft Cost Management . Set budgets and allocate spending to your teams and projects.

Mitigate cloud spending risks by implementing cost management governance best practices with the  Cloud Adoption Framework for Azure .

Cost optimization and cloud financial management

Learn how to understand and forecast your bill, optimize workload costs, and control your spending with Azure tools, offers, and guidance.

See how Azure customers are optimizing their cloud investment

Adobe runs its vast open-source application portfolio in Azure, using the enterprise-grade availability and performance to deliver outstanding customer experiences with its software.

Dentsu Aegis Network gains new business agility by migrating its entire infrastructure to the cloud with Azure, enabling the company to now provision and scale services quickly and cost-effectively.

Explore more cloud economics resources

Analyst reports.

View cloud economics research studies and analyst reports.

Forrester: The Total Economic ImpactTM of Microsoft Azure IaaS

IDC: Understand Cloud Pricing Options—What to Consider When Moving to the Cloud

Best practices

Get proven guidance to accelerate your cloud adoption journey with:

Microsoft Cloud Adoption Framework for Azure

Azure Well-Architected

Azure migration and modernization center

Cloud adoption plan

Related content

Blog: Demystifying cloud economics

Microsoft Learn module: Prepare for successful cloud adoption with a well-defined strategy

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Webinar: Drive Cloud Value and Manage Azure Costs Through PowerBI

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The business case for cloud native

October 1, 2020

As well as this, the cloud is a critical accelerator for wider enterprise digital transformation, and can even open new revenue streams, by enabling new business services and outcomes.

Cloud native is a key term in the IT cloud stratosphere. By cloud native, we mean business functionality that is built in the cloud. Cloud-native apps enable companies to rapidly innovate and scale new products, achieving levels of velocity and flexibility that are unattainable with legacy systems.

Such an infrastructure will have come in very handy for businesses during the beginning of the pandemic. With 90% of people using office applications at home, the ability to scale in an agile manner and adjust to new volumes meant that businesses with cloud-native apps could weather the storm better than counterparts without. It’s no surprise then that cloud budgets are getting bigger, even increasing during the pandemic, as it is seen as essential to an organisation’s long-term sustainability and profitability.

Becoming a digital enterprise

Adopting cloud native applications is essential to becoming an agile, digital enterprise. The transformation is not an overnight process; it takes time, strategy and thought. Businesses are in a constant state of motion; they can’t switch off their legacy applications and then create cloud native ones. Transformation must be done symbiotically – but there is no one-size-fits-all approach to cloud native adoption.

To take full advantage of the possibilities of cloud native and become a truly digital business, it’s important to have the right strategy in place. This means finding solutions to the difficulties of integrating with legacy infrastructure and investments, addressing cybersecurity and data protection concerns, and managing the cultural challenges that come with shifting from a traditional development environment to one of continuous delivery.

Application modernization

Application modernization can take many different forms. For example, the lift and shift approach copy and pastes application workloads to run as-is in the cloud. There’s also cloud-enabled virtual automation, which enables redeployment with an orchestration platform while preparing the organization for a DevOps practice. Post-modernization, cloud native applications must be viewed as being in a constant state of flux; businesses will want to change and add application in real time to the cloud, meaning elasticity is a must.

Skills and culture

The shift to cloud native is more than just a technical transition; it’s a complete culture change. And people, by nature, resist change if the value isn’t immediately clear or the transition isn’t seamless. Successful cloud native strategies are underpinned by a culture of flexibility and innovation. To create that, you must have everyone on board. To fully unlock the power of cloud native, CIOs and other senior business leaders need to ensure everyone is on the same team.

Developing cloud-native applications also requires a team with strong knowledge of cloud native solutions. Skilled app developers are in demand, outpacing supply in some regions. Organizations should recruit architects to guide development decisions, upskill their existing teams and partner with knowledgeable suppliers who can help to alter established cultures.

DevOps alignment

An agile and DevOps approach as part of a cloud native strategy can help all stakeholders to stay aligned to one mission and work continuously to achieve it. Cloud progression simply cannot be siloed to the IT team: it must be aligned to big picture business goals.

“Improving the customer experience” and “improving business scalability” – these are the kinds of goals that everyone in the C-suite can understand. Aligning these goals as benefits in the cloud native and DevOps strategy can go a long way in successfully driving a smooth cultural transition.

A shift to DevOps also eliminates much of this frustration through close collaboration between business and IT. Ops and Dev teams share discussions, share system access on-demand, and work together to automate the release of new applications. It’s an altogether more agile, collaborative and entrepreneurial model which can go a long way to drive innovation and positive change. With a cloud native DevOps model, changes and updates are constant and iterative, promoting a culture of seamless and continuous improvement.

A worthwhile journey

Capgemini’s cloud native services help digital enterprises quickly innovate, experiment and scale to market demands. We work with leading solution providers, including both public (Amazon Web Services, Microsoft Azure, Google, etc.) and open source products (Red Hat etc.).

In one example, we helped the UK Home Office with its cloud transformation, as its existing hosting platform lacked the scalability and stability necessary to support its ambitious transformation agenda. Capgemini provided a team of experts to manage the migration from the client’s previous supplier to the AWS platform, and a second team which was responsible for maintaining business continuity. We worked collaboratively with the Home Office Immigration Technology team to ensure that the migration opportunity delivered innovations that provide greater reliability and ability to scale, earlier integration testing and more efficient use of the AWS cloud resources, whilst at the same time providing a support team to maintain business as usual.

The redesigned and simplified infrastructure has improved the stability and resilience of the Home Office’s cloud environment, enhanced reliability of deployment and improved the security of the production service. It has also increased the ability to scale and to optimize infrastructure costs. This has resulted in more efficient and better protected digital services, ready and available for operational business and live services.

Becoming a cloud native company calls for a complete transformation in the way you innovate, develop, deliver, change, and collaborate on new software capabilities. That’s why Capgemini is the ideal partner for cloud native strategies: we are a leader in cloud transformation, helping enterprises around the world design and implement a cloud-first way of working

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Embracing the Cloud: Navigating the Age of Platform Engineering

In the dynamic landscape of technology, the concept of the Cloud has evolved from a buzzword to a cornerstone of modern business infrastructure. As we move ahead through 2024, the importance of embracing Cloud technology has never been more pronounced, especially for technology companies aiming to stay ahead in the game. Welcome to the age of Platform Engineering, where innovation thrives and businesses redefine their strategies to leverage the power of the Cloud.

The Evolution of Cloud Computing

To comprehend the significance of Cloud technology in 2024, it's crucial to reflect on its evolutionary journey. From its inception, Cloud computing has undergone a remarkable transformation, transcending mere storage solutions to becoming the backbone of digital transformation. What started as a means to offload data storage and computational tasks has now burgeoned into a versatile ecosystem offering unparalleled scalability, flexibility, and efficiency.

Scalability Redefined

In 2024, scalability remains a pivotal aspect of Cloud computing. However, the definition of scalability has evolved beyond mere resource allocation. Today, scalability encompasses the ability to seamlessly adapt to fluctuating demands while ensuring optimal performance and cost-effectiveness. With the advent of advanced Cloud technologies such as serverless computing and containerization, businesses can scale their operations with unprecedented agility, ushering in a new era of efficiency and innovation.

Agility and Flexibility

The age of Platform Engineering heralds a paradigm shift towards agility and flexibility. Traditional monolithic architectures are gradually giving way to microservices-based architectures, enabling companies to modularize their applications and accelerate development cycles. Leveraging Cloud-native technologies like Kubernetes and Docker , organizations can deploy, manage, and scale applications with unparalleled ease, empowering developers to focus on innovation rather than infrastructure management.

Enhanced Security and Compliance

In the wake of increasing cybersecurity threats and regulatory requirements, security remains a top priority for technology companies. In 2024, Cloud providers have stepped up their game, offering robust security measures and compliance frameworks to safeguard sensitive data and ensure regulatory compliance. With features like encryption, identity and access management, and continuous monitoring, Cloud platforms provide a secure environment for businesses to thrive without compromising on data integrity or regulatory adherence.

  Cloud Computing Trends

The Business Imperative: Embracing Cloud Technology

In the hypercompetitive landscape of technology, staying ahead of the curve is not merely an option but a business imperative. Embracing Cloud technology offers a myriad of benefits that can propel businesses towards success in 2024 and beyond.

Cost Optimization

One of the most compelling reasons to embrace Cloud technology is its cost-effectiveness. By leveraging pay-as-you-go pricing models and avoiding upfront infrastructure investments, businesses can significantly reduce their operational costs while maximizing ROI. Moreover, Cloud platforms offer economies of scale, enabling organizations to access cutting-edge technologies and resources at a fraction of the cost of traditional on-premises solutions.

Accelerated Innovation

Innovation is the lifeblood of technology companies, driving growth and differentiation in a crowded marketplace. Cloud technology acts as a catalyst for innovation, providing a fertile ground for experimentation and iteration. With access to a rich ecosystem of Cloud services, developers can rapidly prototype, test, and deploy new products and features, bringing ideas to market at unprecedented speed. Moreover, Cloud platforms foster collaboration and knowledge sharing, enabling cross-functional teams to work seamlessly towards common goals.

Global Reach and Scalability

In today's interconnected world, geographical boundaries are no longer barriers but opportunities for expansion. Cloud technology empowers businesses to extend their reach globally, tapping into new markets and customer segments with ease. With Cloud-based solutions, companies can deploy their applications and services across multiple regions, ensuring low-latency access and high availability for users worldwide. Furthermore, the inherent scalability of Cloud platforms allows businesses to scale their operations on-demand, accommodating growth without compromising performance or reliability.

Business Continuity and Disaster Recover

In an era characterized by digital disruption and unforeseen challenges, ensuring business continuity is paramount. Cloud technology offers robust solutions for disaster recovery and data backup, mitigating the risk of data loss and downtime. By leveraging Cloud-based disaster recovery services, businesses can replicate their critical workloads in geographically dispersed data centers, ensuring resilience and redundancy in the face of adversity. Moreover, Cloud platforms provide automated failover mechanisms and continuous monitoring, enabling swift recovery in the event of disruptions or failures.

  The Business Case for Cloud Computing

The Road Ahead: Embracing Cloud-Native Practices

As we navigate the age of Platform Engineering in 2024, embracing Cloud-native practices is essential for technology companies to thrive in a rapidly evolving landscape.

Adopting DevOps Culture

DevOps lies at the heart of Cloud-native practices, promoting collaboration, automation, and continuous delivery. By breaking down silos between development and operations teams, DevOps fosters a culture of innovation and agility, enabling faster time-to-market and higher-quality software releases. Embracing DevOps principles such as infrastructure as code, automated testing, and continuous integration/continuous delivery (CI/CD) , organizations can streamline their development pipelines and accelerate innovation cycles.

  Problems solved by DevOps

Leveraging Serverless Computing

Serverless computing represents the next frontier in Cloud-native architecture, offering a paradigm shift in application development and deployment. By abstracting away infrastructure management, serverless platforms enable developers to focus on writing code and delivering business value. With serverless computing, organizations can achieve unprecedented scalability, cost efficiency, and operational simplicity, empowering them to innovate at scale without worrying about infrastructure constraints.

  Benefits of Serverless Computing

Embracing Edge Computing

In an era characterized by the proliferation of connected devices and IoT applications, Edge computing has emerged as a game-changer. By bringing computation closer to the data source, Edge computing minimizes latency, enhances data privacy, and conserves network bandwidth. In 2024, Edge computing will play a pivotal role in enabling real-time decision-making and immersive experiences across various industries, from manufacturing and healthcare to retail and transportation. By embracing Edge computing, technology companies can unlock new opportunities for innovation and differentiation in a data-driven world.

  Edge Computing Explained

As we embark on the journey into 2024 and beyond, the age of Platform Engineering beckons technology companies to embrace Cloud technology wholeheartedly. From scalability and agility to cost optimization and innovation, the benefits of Cloud computing are manifold. By adopting Cloud-native practices and leveraging advanced technologies, organizations can not only stay competitive but also drive meaningful transformation in the digital landscape. The road ahead may be challenging, but with Cloud technology as our ally, the possibilities are limitless. Embrace the Cloud, and unlock the true potential of Platform Engineering in the age of digital disruption. In the age of Platform Engineering , the Cloud isn't just a tool; it's a strategic imperative for success. As we navigate the complexities of the digital landscape in 2024, embracing Cloud technology isn't just about staying ahead—it's about rewriting the rules of the game and shaping the future of technology.

Cloud Platform Engineering

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Cloud Computing

by Nick Wong ‘20

What is cloud computing?

• It may sound complicated and foreign
• But it’s really just many technologies coming together
• It allows for the outsourcing or borrowing of computers
• Computations and applications can be done on computers that are not physically ours or located near us
• The Internet was often drawn as a “nebulous cloud”
• Its primary function was getting information from one location to another
• There are many languages and databases to choose from
• Our computers only have so much RAM, so much storage, and so many CPUs
• With too many customers, or users, or requests , our technology can very quickly be overwhelmed

Cloud Solutions

• Eventually we reach that upper limit, where too many users are trying to use our product
• These users maybe experience error messages, or no working product at all
• What if we added a second server, with the exact same technology?
• Now, we probably don’t want to arbitrarily change our URL, a la www1.example.com or www13.example.com
• What if we put a server in between our two new servers, and our URL brought users there
• Sometimes, this middleman gives users the IP address of our original server, and sometimes it gives those users the IP address of our second server
• We might call this middleman, which balances the traffic or load on our servers, a load-balancer
• IP addresses don’t change that often, though they can change
• If we remember, or cache an IP address for one of the servers behind our load-balancer , what happens if that server goes down or incurs downtime ?
• Maybe we don’t give our two servers unique IP addresses
• Instead, our domain name leads users to the load-balancer
• And somehow, the load-balancer routes traffic
• If DNS returns the IP address of the load-balancer, then we don’t have this problem of having users unable to access a given server
• To make sure that the load-balancer is keeping track of which servers are online, we can use something called a heartbeat
• This just means having servers behind the load-balancer “check in” periodically with the load-balancer

SPOF - Single Point Of Failure

• Now, our network can tolerate server one or two going down, but not the load-balancer
• We assume that our load-balancer can handle at least twice as much traffic as an individual one of our servers
• However, it can still be overwhelmed, and what happens if it is?
• Previously, we added hardware, maybe we could add another load-balancer
• Now, we have two load-balancers and two servers
• We could configure the load balancers to send heartbeats to each other
• If one of the load-balancers is down, then the other one takes on the responsibility of traffic
• This hardware has both a financial and logistical cost
• There are now wires that need to be connected, and housing needs to be bought for the servers
• Maybe we don’t have enough physical space and cooling
• MBTF - Mean Time Between Failure can very quickly drop
• Maintaining this can quickly become quite difficult

IAaS - Infrastructure As a Service

• Amazon, Google, Microsoft, etc
• There is software that mimicks the behavior each of the things we’ve seen so far - load-balancers and servers - and more
• Now, we’re able to buy the infrastructure we need, but not worry about make and model of server, cooling, wiring, and other logistical costs
• Another added benefit is auto-scaling
• If our company is more successful than anticipated - maybe it’s the holiday season - we need more technology
• IAaS can provide for us the ability to scale up our hardware - maybe by turning on more servers
• This can happen passively, without us knowing
• The reverse is also true - the service automatically scales down when not being used
• Over the years, we’ve been able to pack more computability into the same space (a la Moore’s Law )
• Humans, however, have been checking their email at around the same speed
• This means, that we can put multiple simulated machines on the same hardware

Virtual Machines

• Virtual machines are software that allow us to simulate running several computers on the same hardware
• This allows us to oversell to customers, where we only have so much memory on our servers, but we assume some customers will not have very successful businesses
• This means that those customers will not need as many computer or CPU cycles
• For the customer though, this means that your website can be hosted on the same machine as another customer whose business is hugely successful
• This translates to slower runtimes and services for reasons outside of your control
• Virtualization looks very much like splitting your computer into several smaller, virtual , computers
• Virtualization can be inefficient though - what if all customers are using the same guest OS or virtual operating system as the host OS , or operating system actually installed on the server?
• This is what has given rise to containerization , like in Docker
• Containerization allows us to use the host OS, sharing operating system resources, while still separating the other virtual computers
• While there is still some overhead - we need to have some enginer, Docker or Hypervisor, but there aren’t copies of the same operating system
• This provides the same separation, but with less watse of resources

PAaS, SAaS - Platform and Software As a Service

• Even if you don’t know it, you’ve likely already used SAaS, as with Gmail, or Outlook.com
• We don’t need to worry about where our emails are, or how they get from place to place
• IAaS is where you still need to understand network topology, and how to put things together
• Often, these services run on Amazon, Google, or Microsoft infrastructure, but provide a sort of middle ground
• This middle layer of abstraction makes it easier for us to run applications
• All we have to deal with is - host this as a server, without concerning me with how it communicates, scales, or load balancers
• The downside of course is not necessarily knowing how to solve a given problem, if that problem occurs within the platform provider
• Beyond the application, we likely also need to store data somewhere
• Now, it’s very common for a web server to be very specialized - a server to send emails, a server to respond to HTTP requests, etc
• Our infrastructure likely has at least one database
• Databases are generally drawn as cylinders, and are connected to all of our servers
• All of our servers can then save and read all their data from the same place
• Vertical scaling - pay more money for bigger and better hardware
• Even the best database server can only handle so many connections, reads, and writes at any one time
• Maybe we can go back to the engineering solution - scaling horizontally
• If we add another database - we probably can’t just use a load balancer, because then some data will end up in one database and not in the other
• We could also shard the databases, where we put similar users in databases that only contain those users
• This doesn’t help us backup our data though
• We could go back to something like our first model, with one large master database
• In something called replication , we could add smaller or equivalent databases that can only read, from that main database
• In another step up, maybe we have two master databases, and even if data is only written to one of them, they communicate with each other to make sure the data gets replicated

Layering and Summary

• As difficult or foreign as these things can sometimes sound, we’re really just layering many layers on top of increaingly complicated ideas
• We started with binary and ASCII, and have gotten all the way to cloud computing, building layer by layer
• At each step, the differences are really on just abstracting away common problems to make our code as accessible and efficient as possible
• With all of this in mind, the idea is that we can use each of these layers and puzzle pieces to build better solutions to the challenges that arise in building our own site

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Cloud Computing Case Studies and Success Stories 2024

Home Blog Cloud Computing Cloud Computing Case Studies and Success Stories 2024

Have you ever wondered how all those services and apps operate so smoothly together to improve our digital lives? All of this is possible because of cloud computing, the unsung hero of the computer industry.

Imagine a business that is trying to innovate and improve its processes as it faces obstacles. Come into the cloud and intervene to rescue the day. Let me take you behind the scenes to witness the hardships, "Aha!" moments, and remarkable advantages this switch brought about.

Picture it as a beautiful performance where data and virtualization work together smoothly, creating a story that goes beyond just technology – it's a big change in how businesses work. Get ready for a journey into something amazing, where the cloud isn't just a fix; it's like the main character in a story of new and creative ways of doing things in the business world. In this article, I will take you across some of the cool cloud computing case study examples and highlight cloud implementation in those cases.

What is Cloud Computing?

Cloud computing is a technology that allows remote access to computing resources such as servers, storage, databases, networks, software, and analytics via the Internet. Instead of relying on local servers or personal devices to run applications, organizations and individuals can use a remote "cloud" of " servers to store and process data." This system is flexible and cost-effective, allowing users to pay for the resources they use.

Alright, so, you know how we all use apps, store photos, and run software on our devices? Well, cloud computing is like the behind-the-scenes magician making it all happen. Instead of relying on our own computers, it's like renting power from internet-connected supercomputers. These "cloud" servers handle everything – from storing your files to running complex applications. It's like having a virtual storage space and a powerhouse rolled into one. The cool part? You only pay for what you use. So, next time you save a document or binge-watch a show, remember you're tapping into the magic of cloud computing!

You can explore Knowledgehut Cloud Computing training courses to learn more about cloud computing.

Benefits of adopting cloud computing for businesses

Businesses can gain a great deal from adopting cloud computing, which can completely change how they function and plan in the digital world.

Cost Efficiency

• Businesses experience less financial burden since cloud computing eliminates the requirement for significant upfront hardware investments.
• Example: Let's say a startup releases a brand-new app. Rather than spending a lot of money on servers, they use cloud services. They only pay for the storage and processing power that they really use, which frees up funds for marketing and development.

Scalability

• Companies may readily adjust their resource levels in response to demand. This adaptability to transferring enterprise needs offers peak overall performance without requiring enormous infrastructure investments.
• Example: Imagine an e-commerce website during a holiday sale. Because of cloud scalability, users can shop with confidence as the site adapts automatically to growing traffic. Resources are reduced after the sale to save money.

Remote Cooperation

• Cloud services facilitate seamless communication across teams regardless of physical locations by enabling remote access to data and applications.
• Example: A design team works together on a project in a worldwide business setting. They may collaborate on the same files at the same time, no matter where they are, thanks to cloud tools.

Security Procedures

• Strong security measures like access controls, authentication, and encryption are frequently provided by cloud providers. Strengthening defenses against potential cyber threats is facilitated by automatic upgrades and disaster recovery capabilities.
• Example: An organization that handles finances shifts its operations to the cloud. The cloud provider’s advanced security features, such as encryption and multifactor authentication, protect sensitive customer data and assure compliance with industry standards.

Innovation and Efficiency

• Adoption of cloud computing propels organizations to the vanguard of innovation with the aid of presenting a dynamic and adaptable digital infrastructure. Consequently, quicker service and app deployment ends in expanded operational efficiency.
• Example: To run simulations, a research team needs a lot of processing power. They can swiftly access and launch virtual computers thanks to cloud computing, which speeds up their research and expands the realm of what is practical for them.

If you want to advance your career in technology, enroll in Cloud Computing training courses can provide the necessary skills and knowledge to rapid growly.

Cloud Computing Case Studies

Let’s dive into some of the popular case studies on cloud computing to decode how it has been a great asset in the current technological world.

Siemens Case Study

Let's look into the cloud computing case study of Siemens.

Background:

• Siemens, a global technology and engineering company, operates in various sectors, including energy.
• The energy sector faces challenges with numerous alerts and alarms in power plants, leading to increased operational complexity.
• High volume of alerts resulted in alert fatigue and reduced efficiency.
• Difficulty in distinguishing critical alerts from less urgent ones, impacting the ability to respond promptly to issues.

Solution: Siemens partnered with Amazon Web Services (AWS) to implement a cloud-based solution for optimizing alert management.

Implementation: 

• Leveraged AWS Cloud services to build a scalable and intelligent alerting system.
• Utilized AWS Lambda for serverless computing, enabling real-time processing of data.

Results: 

• Reduced power plant alerts by an impressive 90%, minimizing operational noise.
• Improved the ability to focus on critical alerts, enhancing overall plant efficiency.
• Achieved cost savings by leveraging the pay-as-you-go model of AWS services.

Technological Impact:

• Implemented machine learning algorithms to analyze historical data and predict potential issues, enabling proactive maintenance. I
• Integrated AWS CloudWatch for monitoring and AWS Simple Notification Service (SNS) for effective alert notifications.
• Operational Efficiency:
• Streamlined the monitoring process, allowing operators to respond swiftly to critical events. Enhanced decision-making by providing actionable insights derived from real-time data analysis.
• Scalability and Flexibility:
• AWS's scalable infrastructure ensured the system could handle increasing data volumes as the power plants expanded.
• Flexibility in deploying additional AWS services facilitated ongoing optimization and innovation.

User Experience: Improved overall user experience for plant operators by reducing cognitive load and allowing them to focus on critical tasks.

Future Prospects: Siemens continues to explore AWS services for further optimization, demonstrating a commitment to ongoing innovation and efficiency gains in power plant operations.

Dream 11 Case Study

Let's look into cloud computing case study of Dream11.

Background:  Dream11, India's largest fantasy sports platform, constantly seeks to enhance its technology infrastructure to provide users with a seamless and high-performance experience. Facing the challenge of optimizing costs while improving search functionality, Dream11 turned to Amazon OpenSearch Service for a strategic solution.

Challenges :

• Performance Enhancement: Dream11 aimed to boost the performance of its platform's search functionality, ensuring faster and more accurate results for users.
• Cost Optimization: Simultaneously, the company sought to optimize costs associated with the search infrastructure, aligning with efficient resource utilization.
• Integration of Amazon OpenSearch Service: Dream11 strategically chose Amazon OpenSearch Service to address its performance and cost optimization goals. The fully managed, open-source search and analytics service offered by AWS became a key component in upgrading Dream11's search functionality.

Key Achievements: 

• Performance Boost: Amazon OpenSearch Service enabled Dream11 to achieve a remarkable 40% improvement in the performance of its search functionality. Users experienced faster and more responsive search results, enhancing their overall experience on the platform.
• Cost Optimization: Leveraging the managed service model of Amazon OpenSearch, Dream11 successfully optimized costs associated with maintaining and scaling its search infrastructure. The platform could now efficiently allocate resources based on actual usage patterns.

Operational Efficiency: 

• Managed Service Model: Dream11 benefited from the fully managed nature of Amazon OpenSearch Service, reducing the operational overhead of maintaining and monitoring the search infrastructure.
• Scalability: The elastic nature of the service allowed Dream11 to scale its search capabilities dynamically, accommodating varying levels of user activity without compromising performance.

User Experience: 

• Faster and Accurate Results: With the enhanced performance of the search functionality, users enjoyed quicker and more accurate search results, contributing to an improved and satisfying user experience.
• Responsive Platform: Dream11's platform became more responsive, ensuring that users could swiftly find the information they were looking for, enhancing overall engagement.

Future Integration: 

• Continuous Optimization: Dream11 remains committed to continuous optimization and enhancement of its technology infrastructure. Future integration with AWS services and technologies could further improve various aspects of the platform.
• Innovation in Fantasy Sports Technology: The success of optimizing search functionality positions Dream11 to explore and implement innovative technologies in the realm of fantasy sports, offering users cutting-edge features and experiences.

BookMyShow Case Study

Let's look into the cloud computing case study on BookMyShow.

Background: BookMyShow, a prominent entertainment company in India, operates a comprehensive online ticketing platform and offers a range of services, including media streaming and event management.

Challenges: 

• Technical Debt: BookMyShow grappled with overprovisioned on-premises servers, resulting in unnecessary costs and inefficiencies.
• Scalability Concerns: The existing infrastructure struggled to dynamically scale according to fluctuating traffic volumes, leading to potential performance issues during peak times.

AWS Cloud Migration: 

• Strategic Partnership: BookMyShow collaborated with Amazon Web Services (AWS) and engaged Minfy Technologies, an AWS Premier Consulting Partner, to facilitate the migration of its data and applications to the AWS Cloud.
• Cost-Effective IT Architecture: The move to AWS aimed to create a more elastic and cost-effective IT infrastructure, aligning with BookMyShow's objectives for scalability and efficiency.
• Total Cost of Ownership (TCO) Improvement: BookMyShow achieved a significant 70 percent improvement in Total Cost of Ownership (TCO) by leveraging the cost-effective resources and scalability offered by AWS.
• Scalability: The AWS Cloud's elastic nature allowed BookMyShow to seamlessly scale its infrastructure in response to varying traffic demands, ensuring optimal performance during peak booking periods.
• Resource Optimization: By migrating to AWS, BookMyShow optimized resource allocation, eliminating the need for overprovisioned servers and reducing operational costs.
• Agility and Speed: The cloud environment provides agility and speed in deploying updates and features, contributing to a more responsive and efficient operational workflow.

Diverse Service Offerings: 

• Ticketing Platform: BookMyShow's online ticketing platform, which serves millions of customers across multiple regions, benefits from AWS's scalability and reliability.
• Media Streaming and Event Management: Beyond ticketing, AWS supports BookMyShow's diverse service offerings, including online media streaming and end-to-end event management for virtual and on-ground entertainment experiences.

Future Collaborations:

• Continuous Optimization: BookMyShow remains committed to continuous optimization, exploring further AWS services to enhance performance, security, and user experience.
• Innovation in Entertainment Technology: The collaboration with AWS positions BookMyShow to explore and implement innovative technologies, ensuring it stays at the forefront of the rapidly evolving entertainment tech landscape.

Source for Bookmyshow case study .

Pinterest Case Study

Let's look into the cloud computing case study on Pinterest.

Background: 

• Company: Pinterest, a visual discovery and bookmarking platform, relies on a robust and efficient built pipeline to ensure the quality and reliability of its iOS app.
• Objective: Enhancing the reliability of the iOS build pipeline to streamline the development process and deliver a seamless app experience.
• Build Pipeline Reliability: Pinterest faced challenges related to the reliability of its iOS build pipeline, impacting the speed and efficiency of app development.
• Resource Constraints: Traditional build infrastructure posed limitations, particularly for iOS development, where macOS environments are crucial.

Solution: 

• Amazon EC2 Mac Instances: Pinterest adopted Amazon EC2 Mac instances, leveraging macOS environments on the AWS cloud for iOS app builds.
• Scalability: The use of EC2 Mac instances allows Pinterest to scale resources dynamically based on the demand for iOS builds, optimizing performance and reducing bottlenecks.
• Reliability Improvement: By incorporating Amazon EC2 Mac instances, Pinterest achieved a remarkable 80.5% improvement in the reliability of its iOS build pipeline.
• Faster Development Cycle: The enhanced reliability translates to a more predictable and faster development cycle, enabling Pinterest to roll out app updates and features more efficiently.
• Parallel Build Processes: EC2 Mac instances enable Pinterest to run multiple iOS builds simultaneously in parallel, significantly reducing the overall build time.
• Cost Optimization: By utilizing EC2 Mac instances on a pay-as-you-go model, Pinterest optimizes costs, ensuring financial efficiency in infrastructure management.

Impact on Development Workflow: 

• Developer Productivity: The improved reliability and efficiency positively impact developer productivity, allowing them to focus on coding and innovation rather than troubleshooting build issues.
• Consistent Development Environment: EC2 Mac instances provide a consistent macOS development environment, minimizing compatibility issues and ensuring uniformity across the development lifecycle.
• Continuous Optimization: Pinterest continues to explore ways to optimize its build pipeline further, possibly incorporating additional AWS services or enhancements to the existing infrastructure.
• Broader Cloud Integration: The success of using EC2 Mac instances may encourage Pinterest to explore additional AWS cloud services for other aspects of its development and infrastructure needs.

Source for the Pinterest case study .

MakeMyTrip Case Study

Let's look into the cloud computing case study on MakeMyTrip.

Background:  MakeMyTrip, a leading online travel platform, caters to millions of users by providing a diverse range of travel services. In an ever-evolving and competitive industry, optimizing operational costs while maintaining robust performance is crucial. MakeMyTrip turned to Amazon Elastic Container Service (ECS) and Amazon Elastic Kubernetes Service (EKS) to achieve this delicate balance.

• Cost Efficiency: MakeMyTrip aimed to reduce its compute costs without compromising the performance and reliability of its services.
• Scalability: With varying levels of user activity and traffic patterns, the platform required a solution that could scale dynamically to handle fluctuations in demand.
• Amazon ECS and EKS Integration: MakeMyTrip strategically chose Amazon ECS and EKS, Amazon's containerization solutions, to streamline its computing infrastructure.
• Containerization: Containerization technology allowed MakeMyTrip to encapsulate applications into isolated environments, optimizing resource utilization and ensuring consistent performance.
• 22% Cost Reduction: Leveraging Amazon ECS and EKS, MakeMyTrip achieved a noteworthy 22% reduction in compute costs. This cost optimization played a crucial role in enhancing the company's financial efficiency.
• Scalability: Amazon ECS and EKS's scalability features allowed MakeMyTrip to dynamically adjust its compute resources, ensuring optimal performance during peak travel booking periods.
• Resource Optimization: Containerization through ECS and EKS enabled MakeMyTrip to efficiently allocate and manage resources, reducing wastage and improving overall operational efficiency.
• Simplified Management: The container orchestration provided by ECS and EKS simplified the management of MakeMyTrip's applications, allowing for easier deployment and updates.

Scalability and Performance: 

• Dynamic Scaling: With ECS and EKS, MakeMyTrip could scale its applications seamlessly in response to changes in user demand, ensuring consistent and reliable performance.
• High Availability: The solutions' features for load balancing and automatic scaling contributed to high availability, minimizing downtime during peak travel seasons.
• Continuous Optimization: MakeMyTrip remains committed to continuous optimization, exploring additional AWS services and advancements in containerization technologies for further enhancements.
• Innovation in Travel Technology: The success of cost reduction and performance improvement positions MakeMyTrip to explore and implement innovative technologies, offering users an even more advanced and seamless travel experience.

Source for MakeupTrip case study .

McDonald’s Case Study

Let's look into the cloud computing case study on McDonald's.

Background:  McDonald's Corporation, a global fast-food giant, has embraced digital transformation to redefine its operations and enhance customer experiences. Utilizing the capabilities of Amazon Web Services (AWS), McDonald's has evolved into a digital technology company, achieving remarkable performance milestones in the process.

• Digital Transformation: McDonald's aimed to transition into a digital-first organization, leveraging technology to improve efficiency and customer interactions.
• Performance Targets: The company set ambitious performance targets, seeking to enhance its point-of-sale (POS) system to handle a massive volume of transactions seamlessly.
• AWS Cloud Integration: McDonald's strategically integrated with Amazon Web Services, utilizing its cloud infrastructure for scalable and efficient digital transformation.
• Cloud-Enabled Technology: AWS empowered McDonald's to implement cloud-enabled technologies, enabling a comprehensive overhaul of its systems and processes.
• Performance Milestones: McDonald's exceeded performance targets by up to 66%, showcasing the efficacy of its cloud-enabled digital transformation on AWS.
• Transactions Per Second: The POS system achieved an impressive capability to complete 8,600 transactions per second, demonstrating the scalability and efficiency of the cloud-based solution.

Operational Excellence: 

• Efficient Transactions: AWS provided the necessary infrastructure for McDonald's to conduct transactions with unprecedented efficiency, contributing to operational excellence.
• Scalability: The cloud-based solution ensured that McDonald's could scale its operations dynamically, accommodating fluctuations in customer demand seamlessly.

Customer Experience: 

• Enhanced Interactions: McDonald's digital transformation on AWS led to improved customer interactions, offering a more streamlined and responsive experience at the point of sale.
• Digital Services: Leveraging AWS, McDonald's expanded its digital services, catering to the evolving preferences of its tech-savvy customer base.

Real-Time Performance: 

• Dynamic Transactions: McDonald's achieved real-time processing capabilities, handling a substantial volume of transactions seamlessly through its POS system.

Future Prospects: 

• Continuous Innovation: McDonald's remains committed to continuous innovation, exploring new AWS services and technologies for further enhancements in its digital offerings.
• Global Expansion: The scalability and reliability of AWS position McDonald's for global expansion, ensuring a consistent and efficient digital experience across diverse markets.

Source for McDonald's case study .

Airbnb Case Study

Let's look into the cloud computing case study on Airbnb.

Background: Airbnb, a global online marketplace for lodging and travel experiences, faced the challenge of scaling its Continuous Integration/Continuous Deployment (CI/CD) pipeline to keep pace with the rapid expansion of its online marketplace. To address this, Airbnb turned to Amazon Elastic File System (EFS) and Amazon Simple Queue Service (SQS), leveraging AWS's scalable solutions.

• Scaling Infrastructure: As Airbnb experienced significant growth, the existing source control infrastructure needed to scale to meet the demands of an expanding online marketplace.
• Engineered Solution: To accommodate this growth, Airbnb sought a scalable and robust engineering solution for its CI/CD pipeline.
• Amazon EFS and SQS Integration: Airbnb strategically integrated Amazon EFS and Amazon SQS into its infrastructure, ensuring a scalable and efficient CI/CD pipeline.
• Scalable File Storage: Amazon EFS provided a scalable file storage solution, enabling Airbnb to handle increased data and file storage demands.
• Queue System: Amazon SQS was utilized to create a queue system, facilitating seamless communication and coordination within the CI/CD pipeline.
• Elimination of Scaling Concerns: With Amazon EFS and SQS in place, Airbnb overcame concerns about scaling its source control infrastructure, ensuring the ability to match the platform's exponential growth.
• Confidence in Scalability: The implementation instilled confidence in Airbnb's ability to scale its CI/CD pipeline in alignment with the expanding online marketplace.
• Efficient Source Control: Amazon EFS's scalable file storage system enhanced the efficiency of Airbnb's source control infrastructure, supporting a smooth CI/CD pipeline operation.
• Seamless Communication: Amazon SQS's queue system ensured seamless communication between different components of the CI/CD pipeline, minimizing bottlenecks.

Real-Time Impact: 

• Responsive Growth: The integration of Amazon EFS and SQS allowed Airbnb's CI/CD pipeline to respond dynamically to the platform's growth, ensuring a responsive and efficient development workflow.

Future Scalability: 

• Continuous Improvement: Airbnb remains committed to continuous improvement, exploring additional AWS services and technologies to further enhance the scalability and efficiency of its CI/CD pipeline.
• Scalability Assurance: The successful implementation of Amazon EFS and SQS assures Airbnb that it can confidently scale its infrastructure to meet future growth challenges.

Source for Airbnb case study .

Yulu Case Study

Let's look into the cloud computing case study of Yulu.

Background:  Yulu, a prominent micro-mobility service provider, sought to enhance its service efficiency by leveraging predictive analytics. Through the implementation of a robust prediction model and the utilization of Amazon Web Services (AWS) data lake capabilities, Yulu aimed to optimize its operations and deliver an improved experience to its users.

• Service Efficiency: Yulu faced challenges related to optimizing service efficiency, including fleet management, resource allocation, and user experience.
• Data Utilization: Leveraging the wealth of data generated by its micro-mobility services, Yulu aimed to extract actionable insights to drive operational improvements.
• Prediction Model Implementation: Yulu deployed a sophisticated prediction model to analyze historical and real-time data, forecasting demand, and optimizing resource allocation.
• AWS Data Lake Integration: To effectively manage and analyze large volumes of data, Yulu utilized AWS data lake capabilities, providing a scalable and secure infrastructure.
• Service Efficiency Improvement: The implementation of the prediction model and the utilization of AWS data lake resulted in a substantial improvement in service efficiency, with Yulu achieving a 30–35% enhancement.
• Optimized Resource Allocation: The prediction model enabled Yulu to allocate resources more effectively, ensuring that micro-mobility assets were positioned strategically based on anticipated demand.

Operational Excellence:

• Real-time Data Analysis: The prediction model, coupled with AWS data lake capabilities, allowed Yulu to perform real-time analysis of data, enabling swift and informed decision-making.
• Cost Optimization: Yulu optimized costs associated with fleet management and resource allocation, aligning expenses with actual demand patterns.
• Enhanced Availability: With improved service efficiency, Yulu enhanced the availability of its micro-mobility services, providing users with a more reliable and accessible transportation option.
• Predictive Features: Users benefited from predictive features, such as accurate arrival times and availability forecasts, contributing to an overall enhanced experience.

Future Optimizations: 

• Continuous Model Refinement: Yulu is committed to continuous refinement of its prediction model, incorporating new data and feedback to further enhance service efficiency.
• Expanded Data Utilization: The success of AWS data lake integration encourages Yulu to explore additional ways to leverage data for innovation and business optimization.

Source for Yulu bike case study .

Canva Case study

Let's look into the cloud computing case study of Canva.

Background: Canva, a leading graphic design platform, faced the dual challenge of scaling to accommodate its rapidly growing user base, reaching 160 million monthly active users while concurrently managing and optimizing costs. To address this challenge, Canva strategically leveraged the breadth of Amazon Elastic Compute Cloud (EC2) purchase models and cost optimization tools offered by AWS.

• Scalability: With a massive user base, Canva needed to scale its infrastructure to handle increasing user demands seamlessly.
• Cost Management: As the user base expanded, cost management became crucial. Canva aimed to optimize costs without compromising on performance.
• Amazon EC2 Purchase Models: Canva utilized a mix of Amazon EC2 purchase models, including On-Demand Instances, Reserved Instances, and Spot Instances, to match its diverse workload requirements with cost-effective options.
• Cost Optimization Tools: Leveraging AWS's suite of cost optimization tools, Canva implemented strategies to identify and eliminate inefficiencies, ensuring optimal resource utilization.
• Scale to 160 million Users: Canva successfully scaled its infrastructure to accommodate 160 million monthly active users, meeting the demands of a rapidly growing user base.
• Cost Control: The strategic use of Amazon EC2 purchase models and cost optimization tools allowed Canva to effectively control costs, aligning expenses with actual workload needs.
• Workload Matching: The flexibility of Amazon EC2 purchase models enabled Canva to match diverse workloads with the most cost-effective instance types, optimizing resource utilization.
• Efficient Resource Allocation: AWS cost optimization tools identified and rectified inefficiencies, ensuring efficient resource allocation and reducing unnecessary expenses.
• Scalable Performance: Canva's scalable infrastructure supported a seamless and responsive user experience, even with the significant increase in monthly active users.
• Consistent Service Availability: The optimization efforts contributed to consistent service availability, enhancing reliability for Canva's global user base.
• Dynamic Workload Management: The adaptability of EC2 purchase models allowed Canva to dynamically manage its workload, adjusting resources based on real-time demands.
• Cost Visibility: The implementation of AWS cost optimization tools provided real-time visibility into expenses, allowing Canva to make informed decisions to control costs.

Future Strategies: 

• Continuous Optimization: Canva remains committed to continuous optimization, exploring new EC2 purchase models and cost optimization tools to further refine its infrastructure.
• Innovation and Growth: The successful management of costs positions Canva for continued innovation and growth, ensuring that the platform can evolve to meet the needs of its expanding user base.

Source for Canva case study .

McAfee Case study

Let's look into the cloud computing case study of McAfee.

Background: McAfee, a global leader in the cybersecurity industry, aimed to significantly enhance the performance and efficiency of its operations, particularly in managing a colossal volume of daily transactions. To achieve this, McAfee turned to Amazon Elastic Block Store (EBS), specifically leveraging the high-performance capabilities of Amazon EBS io2 Block Express volumes.

• Performance Optimization: McAfee faced challenges in optimizing its operations' performance, especially concerning the management of many daily transactions.
• Backup Time: Efficient backup processes were crucial, and McAfee sought ways to streamline and expedite its backup procedures.
• Amazon EBS Integration: McAfee strategically integrated Amazon EBS into its infrastructure, harnessing the capabilities of Amazon EBS io2 Block Express volumes for enhanced performance.
• High-Performance Storage: The adoption of io2 Block Express volumes allowed McAfee to leverage high-performance storage, crucial for managing the demanding workload of daily transactions.
• Performance Enhancement: McAfee achieved a substantial 30% improvement in overall performance, optimizing its ability to handle and process 400 million daily transactions.
• Backup Time Reduction: The integration of Amazon EBS io2 Block Express volumes resulted in a significant 50% reduction in backup time, streamlining critical backup processes.
• Efficient Data Management: Amazon EBS provided McAfee with efficient data management capabilities, ensuring that the cybersecurity company could handle daily transactions seamlessly.
• Reliable Storage: The high-performance storage offered by io2 Block Express volumes contributed to the reliability and responsiveness of McAfee's operations.

Cost Efficiency: 

• Optimized Resource Utilization: McAfee optimized resource utilization with Amazon EBS, ensuring that storage resources were allocated efficiently to meet performance demands.
• Cost-Effective Scalability: The scalable nature of EBS io2 Block Express volumes allowed McAfee to align costs with actual storage and performance requirements.

Future Optimization: 

• Continuous Performance Tuning: McAfee remains committed to continuous performance tuning, exploring additional AWS services and advancements to further optimize its operations.
• Exploring Innovations: The success with Amazon EBS opens the door for McAfee to explore further innovations and integrations within the AWS ecosystem.

Source for McAfee case study .

You might have noticed some of the top companies using Amazon Web Services to deploy their application. You can also become an AWS Certified solution architect by enrolling in Cloud Computing course .

In conclusion, the adoption of cloud computing offers unparalleled benefits for businesses in the modern digital landscape. Cloud computing provides a flexible and scalable infrastructure, allowing organizations to efficiently manage resources based on demand. The cost-effectiveness of cloud services, eliminating the need for extensive upfront investments in hardware and maintenance, empowers businesses of all sizes.

With the ability to leverage advanced technologies, rapid innovation, and global reach, cloud computing emerges as a catalyst for sustainable growth, agility, and resilience in today's dynamic business environment. As businesses navigate the future, embracing cloud computing remains pivotal for staying competitive, adaptive, and prepared for the ever-evolving landscape of the digital economy.

Frequently Asked Questions

Cloud computing facilitates secure storage and sharing of patient records, enabling seamless collaboration among healthcare professionals. 

Financial institutions leverage the cloud for data analysis, risk management, and customer-facing applications, ensuring real-time insights and enhanced customer experiences.

Cloud allows businesses to scale resources up or down based on demand, ensuring optimal performance and cost efficiency. Cloud services provide flexibility by enabling remote access to data and applications, fostering collaboration and adaptability in a dynamic business environment.

Businesses should prioritize providers with robust security protocols to safeguard sensitive data. The chosen provider should offer scalable solutions to accommodate business growth and evolving needs effectively.

Businesses may face challenges in ensuring data security and compliance during the migration process. Compatibility and integration with existing systems can pose challenges, impacting the seamless transition to the cloud.

Kingson Jebaraj

Kingson Jebaraj is a highly respected technology professional, recognized as both a Microsoft Most Valuable Professional (MVP) and an Alibaba Most Valuable Professional. With a wealth of experience in cloud computing, Kingson has collaborated with renowned companies like Microsoft, Reliance Telco, Novartis, Pacific Controls UAE, Alibaba Cloud, and G42 UAE. He specializes in architecting innovative solutions using emerging technologies, including cloud and edge computing, digital transformation, IoT, and programming languages like C, C++, Python, and NLP. 

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Reporting by Greg Bensinger in San Francisco; Akash Sriram in Bengaluru; Editing by Pooja Desai, Michael Erman and Marguerita Choy

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Akash reports on technology companies in the United States, electric vehicle companies, and the space industry. His reporting usually appears in the Autos & Transportation and Technology sections. He has a postgraduate degree in Conflict, Development, and Security from the University of Leeds. Akash's interests include music, football (soccer), and Formula 1.

Greg Bensinger joined Reuters as a technology correspondent in 2022 focusing on the world's largest technology companies. He was previously a member of The New York Times editorial board and a technology beat reporter for The Washington Post and The Wall Street Journal. He also worked for Bloomberg News writing about the auto and telecommunications industries. He studied English literature at The University of Virginia and graduate journalism at Columbia University. Greg lives in San Francisco with his wife and two children.

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