Many organizations have started a cloud transformation journey. However, cloud is much more than a technology platform; a cloud business model is needed to compete with today’s digital businesses.
Cloud business model graph

The cloud transformation journey is challenging. For it to be successful, careful planning and execution, along with significant technical, organizational and operational changes, are all required. Additional factors include tight budgets, the need to scale solutions exponentially, and increasing complexity in terms of security and regulations.

In order to fully optimize the cloud business model, the ability of an organization to manage itself and third parties should evolve through three stages of maturity. The goal of the transformation journey should be to enable the organization to manage a continuously improving operational and economic environment for the business.

The cycle must be business-focused and data-driven. Since technology and businesses are always evolving, the journey is a continuous, iterative process. Ericsson defines this as the digital industrial cycle, with five recurring steps. Through the process, it is possible for an organization to use a public, private or hybrid cloud approach, or even its own infrastructure as appropriate.

Given the complexity of the current business landscape, which includes both legacy and modern infrastructure, cloud architectures, evolving best practices and business models, together with increasing market demands, companies should adopt a well-planned, structured approach to cloud transformation. It is essential to establish a capability-driven operating strategy that is aligned with maturity and backed by economic and business goals. The key aspects for success are outlined in this paper.

Cloud transformation – accelerating the journey