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Business Technology

Business values, cost savings and risks showcased through a cloud business case

Modernizing a traditional and fragmented enterprise infrastructure in a large global corporation is a challenge for most companies. Public Cloud is a potential enabler of unlocking business values and saving operational costs, but the journey towards Public Cloud comes with risks and challenges.

Ascend identified business value opportunities by performing a cloud business case.

As a global telecom company, delivering enterprise applications is a complex mission. The company’s group IT function provides the compute power for the applications, enabling the business towards the customers. However, the compute power was delivered by an outsourcing partner mainly from on-prem data centres, which was challenging to modernize and change flexibly and simply. One possibility to overcome this was to migrate the vast majority of the on-prem enterprise landscape to Public Cloud. In order to understand business implications and form a basis for a decision, Ascend developed a scenario-based business case comparing the renewal of the current outsourcing contract with migrating 80% of the enterprise compute landscape to Public Cloud. 

Ascend used an iterative approach to evaluate costs, business values and risks. The first step was to agree and document the scope of the environment, create a common view of the current state and align with the existing strategy of the client’s Group IT. Next, Ascend conducted a qualitative and quantitative analysis with both internally and externally collected data. Information was gathered through system data gathering and probing of the current environment to have a solid view based on facts, which was validated with internal stakeholders as well as the Public Cloud suppliers. In addition to probing the environment in scope, the Public Cloud suppliers also engaged in giving their view of potential business values and considerations for succeeding with the transformation. 

The business case concluded that moving to public cloud would add significant business values, lower costs, and prepare the organization for the future. The main values were increasing the speed of development, improving resilience, and increasing ease of use. While some of these values were easier to unlock, others needed effort and time from the organization to be realized. Identified cost savings were substantial, with long-term optimization possibilities. Reaching cost savings depends on making the right technical and architectural decisions and approach and management of the transformation. In addition to the direct values, key long-term benefits include the virtually unlimited scalability of public cloud and the enablement of modern ways of working, including automation, infra-as-code and DevOps, allowing tech teams to focus on building value.

In assessing the prerequisites for successfully driving the transformation, the build-up of competence internally and with partners – both for the transformation journey and the target organization – was seen as critical. While there were risks identified with a transformation to the public cloud, staying on-prem was higher. 

The fact-based, data-driven approach by Ascend was a success factor in developing the business case. The early engagement of public cloud suppliers gave a clear view on scope, values, costs and increased the confidence of conclusions. In addition, Ascend used an iterative approach where stakeholders were regularly involved, resulting in a solid and well-anchored basis for a decision.

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Clara Calmered

Consultant

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