The Top 5 Challenges Enterprises Face While Adopting the Public Cloud

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

The Top 5 Challenges Enterprises Face While Adopting the Public Cloud

calsoftinc

@calsoftinc

April 29, 2021

Cloud Computing

In these uncertain times, business continuity is every enterprise’s priority worldwide. The need for resilience has been added to the desire to be agile and this has neatly dovetailed into enterprise digital transformation initiatives. In a recent study, 8 out of 10 enterprises opined that the cloud is more important today than the previous year and according to Gartner, the worldwide spending on the public cloud will grow by 23% this year.

But what makes the public cloud so popular among enterprises?

Public cloud is cost-effective. Enterprises pay for the infrastructure they use instead of paying a fixed price.
It is easy to configure and scale up or ramp down.
Most importantly, it provides 99% uptime with almost no risk of failure. The system interconnects several servers. So, even if there’s a single failure in the server, the other servers manage the workload automatically. That way, it ensures that there is no unplanned disruption in the business.

While the advantages of the public cloud are many, it’s not all great news.

Top 5 Challenges in Adopting Public Cloud

Lack of expertise in migration

According to IDG, 28% of enterprises (especially small and medium enterprises) cited lack of expertise as their main challenge in cloud migration. Migrating an existing application to the public cloud requires expertise. The migration can fail without a good migration strategy or the wrong choice of cloud service model.

Migrating mission-critical applications such as the ERP suite to the cloud invites uncertainty about whether it would work in the public cloud as it did on-premises. Application sizing is another migration-linked concern for enterprises. Public cloud infrastructure is shared with other enterprises and hence, enterprises have to consider whether the size of legacy applications that worked within a dedicated environment will pose a challenge in a shared environment. Enterprises often get stuck at this stage due to a lack of expertise and knowledge about such roadblocks they encounter during migration.

Inability to keep pace with new updates

Public cloud providers introduce new updates, features, and tools to help enterprises innovate and grow. These updates help enterprises innovate and gain a competitive advantage. However, this also poses a challenge for them when it happens at a rapid pace.

Enterprises are unable to monitor the changes and adapt to them. Sometimes the cloud infrastructure changes faster than the applications running on it. All these factors impact usage and accessibility plans. As studies reveal, enterprises only derive 20% of the cloud’s value. Given the enormous value that public cloud can provide enterprises, 20% utilization suggests a lot of underutilized potential by enterprises.

Governance and compliance issues

In today’s times, governance and compliance issues are a major concern for enterprises. 39% of them have reported this as one of the primary issues for hesitance in public cloud adoption.

Some of the common governance challenges include lack of accountability, inability to establish best practices of cloud compliance among key stakeholders, no planned disaster recovery process, and lack of training. Cloud compliance becomes a bigger challenge, especially in highly regulated sectors like healthcare, where enterprises have to comply strictly with regulations like HIPAA. Enterprises have to ensure that their cloud strategy complies with agreed policies and procedures and aligns with the overall business strategies. They have to carefully bridge the gap between using the public cloud for data storing and backup and adhering to the industry regulations to ensure their business’ safety.

Security issues

According to a survey conducted last year, 86% of CIOs cited cloud security as the top priority for spending IT budgets. As more data and applications get added to the cloud, enterprises are tasked with protecting the applications and data from unauthorized and unauthenticated users, identity theft, data breaches, and lack of robust security architecture.

Security has become a priority, especially since the pandemic, as most employees are working remotely. Although the cloud providers safeguard their cloud offerings, enterprises have to secure their applications on the cloud too. They have to ensure that they meet security guidelines and that the security team works in collaboration with the cloud service providers to create a comprehensive and robust data security strategy. Lack of security awareness, skilled resources, and the absence of tools and procedures could result in disastrous cloud security outcomes for the enterprise.

Inability to deal with multiple clouds

Vendor lock-ins and escalating cloud application costs are common challenges with the public cloud. Apart from these issues, enterprises also have to ensure that all applications are not concentrated on a single public cloud environment, exposing the applications to security vulnerabilities. To overcome these issues, they are working with multiple cloud providers and encountering increased complexity.

Enterprises are partnering with managed service providers (MSP) to manage their applications across multiple cloud environments. While this helps enterprises manage the escalating costs, reduce operational risks, and prevent vendor lock-ins, they face challenges in efficiently managing the applications. They have to ensure that all the applications across different environments adhere to the same compliance, security policies, and operational governance. This increases the complexity of managing the applications on the cloud for enterprises.

Conclusion

The cloud computing market is constantly evolving to meet the demands of enterprises. Enterprises must choose the right public cloud service provider, plan the budget, build use cases, migrate to the cloud, train the team, and much more. Planning and migrating to the cloud can be a challenge. That’s where enterprises need help from experts who can help them with cloud transformation.

Public Cloud #hybridcloud #cloudtechnology #multicloudcapabilities #cloudcomputing

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

calsoftinc

Calsoft is ISV preferred product engineering services partner in Storage, Networking, Virtualization, Cloud, IoT and analytics domains.