Technology

Top 8 Challenges in Cloud Strategy (How to Overcome Them)

You might think that creating a cloud strategy is quite simple. Just move your systems to the cloud, and enjoy the benefits like speed, flexibility, and innovation. But the reality is quite different and complicated.

Shifting from traditional systems to the cloud comes with its own set of challenges such as risking costs, security concerns, to technical complexities This journey is full of hurdles.

cloud strateg

But the best part is that you can address these challenges with the right cloud strategy for a successful transformation. This article addresses the main challenges companies face when defining their cloud strategy. It will also explore practical solutions to ensure a smooth transition in this digital transformation.

Let’s start with the basics.

What Cloud Strategy Exactly is?

It’s a clear plan of shifting IT infrastructure to a cloud environment. With clear cloud architecture, plans for development, and governance models, cloud strategies make sure the transition is smooth, resulting in effective performance of the infrastructure.

Cloud strategy isn’t just about transitioning data from traditional systems to the cloud; it’s about deciding “Why, What & How”. To put it simply, it’s a roadmap that makes sure a seamless cloud adoption that supports both technology needs and business goals.

Common Challenges in Cloud Strategy with Strategic Solutions

Data Security and Compliance Risks

Meeting data security and regulatory compliance standards is the most common challenge faced by organizations. There are chances of getting breaches when it comes to sensitive data. That’s why it’s important to keep security tight. Additionally, compliance becomes complicated because of the requirement to ensure compliance with strict regulations like GDPR, HIPAA, or PCI DSS.

Solutions:

  • Be it in transit or at rest, make sure to protect the sensitive data. This way, you can make sure the data remains confidential.
  • Advanced identity and access management systems should be used to make sure not everyone gets access to the data.
  • Make sure to monitor the security of the data on a regular basis and apply patches without casualties.
  • Follow a zero-trust architecture to keep a check on every request and declare it untrusted until it’s fully verified.
  • Use cloud-security tools to protect data through encryption, threat detection, and compliance monitoring.

Data Migration Complexities

Shifting from traditional systems to the cloud might seem a simple process, but it often involves a lot of complexities and errors. It’s like relocating to a different place and house; you have to plan, sort, transport, and make sure everything is placed securely at the right place. Keeping its integrity intact with minimal disruption is challenging.

Solutions:

  • Before migration, sort out which apps are ready, which ones need some adjustments, and which must be rebuilt.
  • Don’t try to shift everything at once. Follow a step-by-step process, such as first migrate the ones that are least critical.
  • Make use of migration tools like AWS Migration Hub, Azure Migrate, or Google’s Migrate to reduce potential restrictions.
  • Always run trials to detect the issues beforehand.

Cloud Cost Management

Bill is something you can’t ignore. Keeping it on the right track is usually on a high priority for every business. Cloud services are often cost-effective, but they can also be expensive and can come as a surprise to companies. Therefore, proper planning is a must to make sure costs don’t quickly spiral out of control.

Solutions:

  • Balance between what a company actually needs and what it’s paying for. And getting the most value out of it while staying on budget is the key to effective cost management.
  • Shutting down non-critical workloads after office hours by using automation.
  • Use built-in dashboards to have deeper insights.
  • Track and review your spending on a regular basis. Remove unused storage or licenses to prevent any wastage.

Skill Gaps and Workforce Shortage

Transitioning to the cloud space doesn’t just require built-in tools and features; it also requires skilled teams who can adapt to the setup change quickly. Without sufficient knowledge and expertise, you can face issues like errors or delays in the process. Cloud technology is evolving at such a rapid speed that many companies struggle to find people who are well-versed in technology.

Solutions:

  • Give training on cloud technologies. Plus, encourage them to participate in workshops, certification programs, and hands-on labs if possible.
  • Partner or consult with cloud experts who can help you build a seamless digital transformation strategy.
  • Instead of building everything from scratch, you can go with managed services offered by cloud providers. It will help you fill skill gaps and avoid any possible disruption.
  • Support a learning culture and cross-functional collaboration to ensure everyone is on the same page and working towards the same goal- a smooth transition.

Data Governance

Data governance is the most common challenge that an organization faces while building a cloud strategy. Data is the center of everything, like customer information, analytics, product details, and more. As organizations move their vast amount of data to the cloud, maintaining data accuracy and consistency becomes very challenging. With so much data to manage across different cloud platforms, the big question arises: who owns it, who can access it, and how to use it?

Solutions:

  • First, clear the ownership and set policies. Defining who is responsible for which data and what the policies are for data usage, as well as retention, will strengthen your strategy.
  • Make sure to do regular audits and monitor the quality of data at every step.
  • Add role-based access control. This way, employees could only access the data they need for their job.
  • Create a data governance strategy that includes audit trails, data lineage, and metadata management.

Performance and Visibility Issues

One of the biggest advantages of cloud is speed and availability everywhere and for everyone. But if not planned the strategy properly, it can lead to performance and visibility challenges. Network latency, inefficient autoscaling, or resource contention often leads to performance issues. As for visibility challenges, it arises when teams cannot monitor what’s happening inside the infrastructure properly, which later leads to inefficient resource usage.

Take the cloud as a shared highway: if too many vehicles use the same highway at once, there will be disruptions, congestion, and too many breakdowns. To monitor these bottlenecks, the observability method is used. With this method, you can get system-wide visibility over infrastructure and keep track of deployment issues. This way you can detect problems at the early stages.

Solutions:

  • Use reliable content delivery networks to deliver content as per the user expectations, reducing latency and speeding up load times.
  • Distribute workloads according to requirements across multiple regions. This will reduce the number of delays and improve redundancy.
  • Setting limits on autoscaling will help to enable apps to handle the traffic load while decreasing runaway costs.
  • Partner with experienced and trusted providers offering dynamic SLAs to guarantee performance and a minimum level of service.
  • Optimize every application code and database. Practice activities like clean up code, optimize queries, and use caching to ensure the app’s efficiency.

Vendor Lock-in Risk

Vendor lock-in is the toughest situation to come out from for any company. It’s a situation where a company gets overly dependent on one cloud provider for tech solutions. In such scenarios, it can be challenging, expensive, and very time-consuming to move the data or applications back to their original environment. It can basically restrict a company’s flexibility.

Solution:

  • Don’t rely on just one provider. Be involved with multiple providers (e.g., AWS, Azure, GCP) for different workloads. This will drastically decrease the possibility of vendor lock-in.
  • Don’t move the critical workloads first; keep them for the last while using the public cloud to enhance flexibility.
  • Cloud platforms support open-source databases like PostgreSQL, and MySQL with cloud native solutions like AWS RDS, AWS Aurora, and for MongoDB, Amazon DocumentDB, or the official, fully managed MongoDB Atlas is provided. Hence, you can scale your data and applications with the speed your business grows
  • The multi-availability of such databases with AZs further ensures that the apps can run anywhere and at any time.
  • Keep evaluating and documenting your cloud architecture to initiate a smoother transition. Create an alternative cloud strategy in case switching becomes necessary.

Sustainability & Environmental Impact

When building a cloud strategy, don’t focus just on speed, storage, or scalability; make sure you give environmental footprint equal importance. Behind every cloud service, there are physical data centers that are filled with many servers. To run these services, you need electricity 24/7 and a certain amount of cooling to keep them operational and effective.

That means when creating a cloud strategy, also think of how much energy will be consumed and the amount of carbon emissions that will be produced. As businesses are strengthening their digital presence, the question arises: how green is the cloud?

Solutions:

  • Choose providers who not only provide robust services but also ensure minimum carbon footprints.
  • Try to use serverless computers wherever possible. The reason is that it consumes energy only when the code is running.
  • Using energy-efficient architecture will ensure you are using fewer resources.
  • Keep monitoring carbon footprints and sustainability reports from your provider to make sure you are following eco-friendly practices.

Future of Cloud Strategy

If the past few years were all about how to move to the cloud, the next few will be about how to make the most out of it. Cloud is not just a “nice to have strategy”, it’s a necessity to survive in this digital age and stay competitive.

So, what does the future look like? Let’s understand.

Combination of AI and Cloud

AI has become an important part of cloud services. Cloud providers are already incorporating AI-powered tools for real-time updates, dashboards, automation, and even customer service.

The future of cloud strategy will not just be about storage and service, but will be about how AI can help do more with less.

Serverless & Edge Computing

In the future, serverless and edge computing will go hand in hand in cloud strategy. Edge computing will extend serverless capabilities to the network’s edge locations for real-time processing, reducing round-trip latency and bandwidth consumption. Some popular platforms like AWS Lambda@Edge, and Azure IoT Edge are already bringing serverless runtimes directly to edge locations.

Normalize Multi-Cloud Usage

Using multi-cloud will be the norm. Instead of depending on just one provider, companies will partner with multiple service providers. This will give flexibility, prevent vendor lock-in, while allowing businesses to leverage the best of all worlds.

Security will be on High-Priority

As businesses are relying on clouds more and more, cybersecurity will not remain an IT issue but a boardroom priority. There will be stricter security rules and regulations. In the future, security in cloud strategy will be taken more seriously from the beginning, and it will not be taken as an afterthought.

Tailored Cloud Solutions for Industries

There will be more tailored cloud solutions specific to all the industries. Instead of following a “one-size-fits-all” approach, providers will offer more customized solutions based on your business needs. The built-in compliance and industry tools will also be customized as per your industry standards.

Conclusion

Transitioning to the cloud isn’t just a technical decision; it’s a business decision that will impact the workflows in the long run. The cloud unlocks a lot of opportunities for flexibility, growth, profits, and innovation. At the same time, it also brings some challenges to the table.

But there is a good part of it, too. If everything is planned right, you can turn these challenges into strengths. Planning with the right tools, you can make the cloud work for your profits, not against you.

Key Takeaways

  • Plan smart, not fast. Without planning well before cloud migration can lead to bigger problems.
  • Keep costs, governance, and security as a part of your strategy from day one.
  • Invest in upskilling your team. If you train your team well, there is a high chance of no errors and disruptions during the digital transformation.
  • Long-term goals matter. Focusing on reliability, performance, and sustainability will help you in the long run and will give you real gains.

Find a balance between innovation and value. If done right, the cloud can be more than just an IT upgrade but a true driver of business growth and success.

Richard Duke is an AI consultant with 6+ years of experience in a decade-old digital transformation consulting, Successive Digital. He has supported various organizations in implementing AI-driven solutions through digital transformation consulting by Successive Digital, aimed at enhancing operational efficiency. In his free time, he loves to share his knowledge through blogging.

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