June 15, 2022
Modernizing applications is all well and good, but in many instances, organizations will need the public cloud to realize maximum value. Depending on the case at hand, hyperscalers — large cloud service providers such as Amazon Web Services (AWS), Microsoft Azure and Google Cloud — offer necessary advantages over both private clouds and in-house data centers.
These advantages include flexible capacity, robust security, high levels of resilience and superior IT architectures.
The hyperscalers can also help organizations gain the benefits of new technologies faster than they could otherwise. For example, large cloud providers now offer AI, machine learning and analytics features. These can help organizations create operations that are more efficient and effective.
The sum of those parts is hard to ignore. Most organizations today will be better served — and get a better return on their investment — by moving large enterprise applications to the hyperscalers than they would with smaller, dependent systems.
3 winners take (nearly) all
To be sure, it’s happening already. Over 60% of corporate data is stored in the cloud today, double the percentage of 2015. That’s according to a recent survey by Statista of nearly 1,770 IT and cybersecurity practitioners worldwide.
The dollars are there, too. End-user spending on public cloud is growing by more than 20% a year, according to Gartner. Looking ahead, the research firm expects public-cloud expenditures to exceed 45% of all enterprise IT spending by 2026, up from less than 17% in 2021.
The public cloud is also an arena in which the three leaders — AWS, Microsoft and Google — control 65% of the cloud infrastructure services market, according to Synergy Research Group. After them, market share nearly vanishes. The next 10 providers together control just 21%.
Even some of the most traditional organizations are adopting public cloud. Take Lloyd’s, the insurance and re-insurance market whose history dates back to the 1650s. Earlier this year, Lloyd’s formed a joint venture with DXC Technology and the International Underwriting Association to use cloud and automation technologies to improve the London market’s speed, security and efficiency. (Read the Forbes article to learn more about how DXC’s Cloud Right™ approach enables successful large-scale cloud transformations.)
Public cloud for faster wins
All things being equal, rehosting applications in the public cloud — rather than rebuilding legacy applications — is a much faster way to win.
One big reason is the sheer amount of time those legacy rebuilding projects consume. For a major, far-reaching application, it would not be unusual for the rebuilding work to take as long as three years. Over such a long period, many IT projects will lose steam and direction. Others will become obsolete even before they’re finished, made extinct by the arrival of new technologies.
Another barrier to in-house modernization is talent. You already know that skilled IT professionals are hard to find, and even harder to retain. That’s especially true in high-demand disciplines such as data science, AI and analytics. Knowledge of current and legacy applications is also critical. One of the main reasons for cloud migration failures is the lack of the necessary talent.
Don’t go it alone
Given all these factors, when moving to the public cloud, it’s best to find an IT partner with the skills and proven methodologies that can help you.
Every cloud is different, and not every cloud is suited to your business. Without guidance from an experienced provider working with the right cloud hyperscalers, your enterprise could face uncontrolled IT sprawl, inefficient use of resources and unpredictable costs.
DXC’s Cloud and Infrastructure services leverage our cloud expertise and strong hyperscaler partnerships. We can help you gain the cost control and agility to accelerate business initiatives and improve your customer and employee experiences.
Our consumption-based services will ensure that you get the most from your cloud investments. And our experts bring industry, business process, systems integration and technical experience to the table. End result: You’ll drive real business value at the highest level.
Learn how DXC can help you get the most from the public cloud.