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Controlling cloud costs. A spending rollback in tech has created a niche for start-ups that help companies understand how much money they’re spending on cloud computing. These start-ups—backed by healthy venture capital investment—offer digital platforms that can eliminate needless cloud spending. In March 2023, one such company headquartered in New York raised $21 million. Part of what made that start-up appealing was its self-service model that allows customers to sign up without a sales appointment, said a partner at a venture capital company that led a round of investing for it. [Bloomberg]
Reaching for the clouds. To gain the most value from cloud computing, companies need to do more than just “stick your stuff in the cloud,” according to one UK-based executive. Chief information officers, researchers, and other experts advise that existing IT functions also have to change when companies adopt cloud services. If not, organizations merely shift their servers from their data centers to another company’s. Optimizing IT organization and strategy can eliminate linear software development, which enables teams to deliver innovative features more quickly. [CIO]
Finding value quickly. The dash to digital in recent years has proven the power of cloud computing across a wide range of industries. Many organizations are using the cloud-computing model to create value more quickly. For instance, 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, explain McKinsey senior partner Kate Smaje and coauthors. Customization opportunities in the cloud, including individualized applications and analytics, mean that companies of any size can tailor the infrastructure to their needs.
Some risks. The cloud offers huge cost savings and potential for innovation. But when companies migrate to it, the simple lift-and-shift approach doesn’t reduce costs. Instead, companies must improve their existing applications to take advantage of cloud services. Legacy cybersecurity architectures and operating models can also present problems when companies shift to the cloud. Explore three actions that CEOs can take to increase value from the cloud.
— Edited by Gwyn Herbein, editor, Atlanta
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