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HIGHLIGHTS

  • Many enterprises have migrated to cloud, yet some were disappointed by the limited returns they have realized from their cost-centric approach.
  • The business case for cloud must demonstrate the full value that can be maximized from cloud—both as an enabler of business transformation and for cost savings.
  • Cloud is the foundation for successful enterprise digital transformation and provides the unifying fabric of the digital core to be competitive in Business 4.0 TM world.

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GROWING INVESTMENTS AND CLOUD COMPLEXITIES

The global cloud computing market is predicted to grow at a CAGR of 16.3% to USD 947.3 billion by 2026.

Recent research has shown up to 92% of enterprises have adopted a multi- or hybrid-cloud strategy. Based on priorities and workloads, many enterprises prefer multi-cloud approaches- -that involve a variety of complexities:

  • Billing and pricing models: Operational silos have caused ambiguity about the full opportunity value, measurement, and spend of multi-cloud approaches. Lack of standardization often lead enterprises to tackle several billing models and pricing structures, which are too granular. Choosing the best-possible combination—based on your enterprise use case and future vision—is not easy.
  • New services and features: To gain a competitive edge, cloud service providers introduce new services, pricing models, discounts, and features adding to the complexity and demanding meticulous finance management processes around cloud spend.
  • Cost overruns: Due to gaps in effective monitoring and unrestrained consumption, many enterprises are unaware of the nuances of cloud spend management until it is out of control. As much as 30% of cloud spend is wasted due to lack of transparency and governance. Additionally, the risk of not moving or making changes with a limited or siloed approach can lead to a much greater cost to the business, potentially stunting innovation and growth in the future.

 

Poorly planned migrations, latency in real-time analytics and IoT applications, and misconfiguration of cloud and data breach or loss might result in enterprises’ moving back or repatriating public cloud workloads to on-premise infrastructure or private clouds.

How can you address such cloud complexities? The success mantra lies in adopting a holistic and tailor-made cloud business case model.

"Today, the cloud model can be absolutely borderless. It transcends not just the enterprise boundaries, but also industry boundaries."

-Krishnan Ramanujam, President, Enterprise Growth Group, TCS

 

HOLISTIC CLOUD BUSINESS CASE MODEL

A holistic approach to cloud business case looks past just cost reduction towards productivity gains and increased opportunities.

A typical cloud business case will need to demonstrate savings of IT costs and opportunities for revenue growth. During evaluation, consider the broader business objectives along with IT architectures, security, and operations—and financial implications. Your assessment should include the current and future state IT, total cost of ownership (TCO), hosting model, applications, and types of migration.

The transformation opportunity must be identified, as well as the benefits from innovation, new business models, and productivity. The evaluation must also include identification of opportunities for revenue uplift and target state earnings before interest and taxes (EBIT).

 

PATH TO VALUE

A well-crafted business case model accelerates the path to value beyond the benefits of revenue growth, cost savings, and streamlined operations.

It increases operating margins, improves asset efficiency, and boosts environmental, social, and governance (ESG) effectiveness. What’s more, it opens an entire gamut of actionable intelligence ecosystems, enabling innumerable opportunities for new business models and higher customer satisfaction.

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MULTI-HORIZON IMPACT

Let’s look at how this model helped a large British home improvement retailer that needed to establish a robust foundation for digital transformation to enable future growth.

They needed a balanced, simplified, localized operating model with an agile culture and a mobile-first, service-oriented customer experience to help grow e-commerce sales. TCS enabled the business case model for cloud transformation, demonstrating the opportunity to cut costs and improve productivity with better application performance and accelerated system response time. This, in turn, expedited time-to-market preparing the retailer to meet everchanging demands and new requirements. It also improved employee productivity and scalability of infrastructure to rapidly meet surges in customer demand, ensuring revenue growth. The impact spans multiple horizons of cloud transformation, business enablement, and business and technology innovation.

 

PARTNER FOR SUCCESS

Choose a partner with a deep contextual knowledge of your business processes and thorough experience and expertise in cloud hosting and migration.

When starting on your cloud transformation journey, a trusted partner can help confidently make decisions based on extensive benchmarking research on industry success stories and ­­best practices. The partner you rely on-should be able to perform a scenario analysis and arrive at a value map that sheds light on your future growth, profitability, and cash flow. 

Connect with us to find out how TCS cloud and business transformation roadmap addresses ecosystem complexities.

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