The Cloud Enables Digital Transformation

Cloud technologies are at the center of the digital transformation revolution. Companies embracing digital transformation must embrace the cloud to be successful. There are many advantages to adopting the cloud. Businesses moving to the cloud do so for a range of motivations, seeking a variety of benefits. These benefits fall into four categories: cost, agility, service quality, and new scenarios:

• Cost: Cloud computing offers significant potential cost-savings over on-premises infrastructure, especially once the full cost of the latter is taken into account. In addition, cloud computing enables organizations to move IT spending from capital expenditure (CapEx) to operational expenditure (OpEx). Since the fixed costs associated with shared infrastructure are avoided, the cloud also provides much greater visibility into the true cost of individual applications.

• Agility: Where traditional on-premises infrastructure can take weeks or even months to deploy, Azure offers near-instant provisioning of resources. This enables Azure projects to move much more quickly, without the need to over-provision resources in advance or spend considerable time on infrastructure planning. To take full advantage of this new flexibility, organizations are accelerating the adoption of new ways of working, for example by using agile software development methodologies, continuous integration and deployment (CI/CD), and modern PaaS-based application architectures.

• Service quality: Azure’s infrastructure has been designed to support some of the world’s most demanding workloads. These workloads continuously raise the bar on the quality of service Azure must provide. As these improvements are platform-wide, every Azure customer benefits. As a result, migration to Azure often offers significant improvements in performance, reliability, and security over on premises infrastructure.

• New scenarios: Azure enables new application scenarios which are simply not possible, or would be prohibitively expensive to deliver, using on premise infrastructure. Examples include big data storage and analytics and machine learning. Another example is compliance with industry certifications such as ISO, PCI, HIPA and GDPR, where customers can leverage the certifications offered by cloud providers. These technologies are enabling new application scenarios, driving innovation and competitive advantage that is only available in the cloud.
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These benefits are all central to a successful digital transformation strategy. Reduced costs and the shift from CapEx to OpEx dramatically lowers the cost of innovation, enabling a ‘fail-fast’ experimental approach. This is supported by the increase in agility that again lowers innovation cost and enables a faster time-to market. The scale, performance, reliability, and global reach of the cloud enables small development teams to develop global services for global audiences.

Most of all, new technologies including big data, IoT, machine learning, and AI empower the insight and customer focus upon which digital transformation depends. These technologies are often only available in the cloud or are prohibitively expensive on-premises. Moreover, competition between major cloud providers is driving a tidal wave of innovation within the cloud itself. New features and services are added on a weekly or even daily basis, providing an ever-richer platform and enabling business to continue to experiment, innovate, reduce cost and deliver increasing value. Embracing the cloud is not simply the easiest, or cheapest, or fastest way to drive digital transformation—it is the only way. For many businesses, the first step on this journey is to migrate existing applications to the cloud.

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