Cloud Migration Success: The Role of Honest Consulting
In the early days of cloud computing, companies were lured by promises of cost savings and agility, often diving in without fully understanding the potential benefits and pitfalls, leading to increased costs and dependencies. Initially, "lift and shift" strategies aimed to free businesses from capital expenditure constraints and physical infrastructure management, while consulting firms quickly adapted to guide clients through this shift.
2024-08-14
Ben Steward, Managing Director, Cloud Solutions, North America
Introduction
Several years ago, I sat across from a client who was considering replacing a critical business technology with a vendor’s solution. The vendor had made significant efforts to present their product as superior, addressing gaps in my client’s solution, and was eager to secure a lucrative multi-year contract. Having a strategic relationship with this vendor, we stood to benefit greatly from the implementation of this technology.
THE CONVERSATION WITH THE CLIENT
“I'm thrilled about the new technology—it appears to meet all our requirements and solves our deficiencies. However, this is a significant decision with substantial implications and would require considerable investment. Please conduct a thorough assessment so I can provide a strategic recommendation to the executive team on the best way forward.”
Simple enough, right. So we got to work. Fast forward - did we win the big implementation contract? No, because there was no contract to win. As we dug in on the assessment, it became clear that their current technology was more than adequate to meet their business needs. The majority of their gaps were not technical or related to missing product features or configurations; their issue stemmed from a lack of training and organizational change management. The fix they needed was around people, process and governance - not around the core technology itself. That fix would run them several hundred thousand dollars in consulting costs vs. several million in consulting and a commensurate amount in new product licensing.
Unexpected findings
The recommendation wasn’t exactly what they expected to hear. They had been sold on the new vendor’s product and had assumed this would be a simple validation exercise to justify the change and the investment. Our findings were the right answer, but they were met with frustration by the vendor and confusion by the client. Furthermore, I had to zero out a multimillion dollar opportunity in our pipeline.
The right answer is sometimes no
Sometimes, the right answer is no. I believe that as a true consultative partner, being honest and direct is always the right thing to do. In the end, the experience deepened our relationship with the client and helped us truly evolve into the role of a trusted advisor vs. a transactional consultant.
The importance of honest consulting
This experience has repeated itself in various forms over the years. Often, clients come to us with preconceived notions about the cloud, influenced by aggressive marketing or incomplete advice. They might want quick wins and easy solutions, but as seasoned advisors, we know that true success requires a deeper, more holistic approach to capturing business value through thoughtfully orchestrating cloud enablement. Our goal is to avoid nodding “yes, yes, yes” but rather to ask the hard questions that positions us as a trusted partner who provides honest, and sometimes tough, advice for the long-term benefit of the client. As a good consultant, it is critical that we always remember to put our clients’ best interests first - even if that may not be aligned with our own firm’s objectives, partner desires, and even what our client may believe to be in their best interests.This philosophy underpins our approach to embodying the role of a trusted advisor over the course of framing and delivering on cloud transformation outcomes with our clients.
The challenges of cloud migration and how it has evolved
In the early days of cloud computing, companies were drawn to the promise of cost savings and agility. The fear of missing out drove many to jump on the bandwagon without fully understanding how the cloud could (or potentially wouldn’t) benefit their business which ultimately often led to increased costs and dependencies without delivering the expected value. Many organizations moved forward without bothering to validate a concrete business case, relying instead on high level directional estimates and the comfort that so many others were moving in the same direction.
In the early days of cloud, "lift and shift'' promised to quickly unshackle businesses from capex budgeting constraints and the drudgery of managing physical infrastructure. In parallel, consulting firms - both legacy and “born in the cloud” - worked quickly to get smart on this paradigm shift in order to be well positioned to advise their clients and capitalize on the opportunity. Over time, the initial enthusiasm for cloud adoption was tempered by the reality that effective cloud transformation requires a strategic and well-planned approach.
Over the years, the cloud landscape has transformed. Gone are the days where moving to the cloud was simply about optimizing storage, compute and networking - and that is a good thing. Cloud services have become a powerful enabler of business agility, efficiency, and customer connection. The conversation has shifted from bottom line cost reduction to leveraging the cloud for top line revenue growth and competitive differentiation. To stay relevant, businesses must continuously strategize on using the latest cloud offerings, not just for current cloud based workloads but also as for future migrations and new product engineering.
Today's cloud solutions are far more sophisticated, offering a wide array of services that can drive significant business transformation. However, this also means that the decision-making process has become more complex. Organizations must now navigate a myriad of options, from choosing the right cloud providers to selecting the appropriate services that align with their business objectives. The complexity and rapid evolution of cloud technologies necessitate a comprehensive and nuanced approach to cloud strategy and implementation. Now, more than any other time in the history of Cloud Computing, is the need for a consulting partner with experience and expertise paramount to an organization’s success.
Critical considerations in cloud strategy development and enablement
1. Actionable strategy first
Start with a clear understanding of your current state in the context of your future vision and what you aim to achieve. Develop a comprehensive cloud strategy that serves as a baseline throughout your transformation - a living and breathing ethos that can grow and adapt over time. Reflect on past mistakes and successes to avoid repeating them. This involves conducting a thorough assessment of your existing IT infrastructure, applications, as well as your organization’s talent and business processes. Identify the key drivers for cloud adoption and assign them value across quantitative and qualitative attributes. A well-defined and flexible strategy will serve as a roadmap, guiding your decisions and actions throughout the cloud journey.
2. Target business value
Align your cloud strategy with the business value you hope to derive. This should not be an IT-led initiative but a collaborative effort between IT and business leaders to ensure tangible outcomes, whether in cost savings, revenue generation, or enhanced customer experience. It's essential to link cloud initiatives to specific business goals and metrics. For example, how will cloud adoption improve your time-to-market for new products? How will it enhance customer satisfaction or operational efficiency? Don’t stop until you have peeled the onion all the way back to something “real” and tied the outcomes directly back to your organization's performance management framework. This way you ensure that cloud transformation efforts are directly tied to your organization's strategic objectives.
3. Embrace a holistic mindset
Consider all facets of your organization, including people, processes, organizational structure, governance and of course, technology. Understand the roles and responsibilities required and how decisions will be made within this new framework. Cloud transformation is not just a technical endeavor; it requires a cultural and organizational operating model shift. You need to foster a culture of innovation and agility, where teams are empowered to experiment and adopt new ways of working. This might involve restructuring teams, redefining roles, and establishing new governance frameworks to ensure effective oversight and management of cloud resources and opportunities.
4. Don't do it alone
As I have outlined heavily in the first part of this piece you should engage a trusted partner who has successfully navigated multiple cloud transformations. This advisor should understand your business deeply and align their success with yours, guiding you through the complexities of cloud migration. A seasoned consultant brings a wealth of experience and insights, helping you avoid common pitfalls and make informed decisions. They can provide valuable guidance on selecting the right cloud providers, architecting scalable and secure solutions, and implementing best practices for cloud management and optimization. Make sure you trust this partner to give you the best advice for you and your team - they shouldn’t be afraid to push back on you if they genuinely believe it is in your best interest.
Conclusion
As we circle back to the beginning, it's clear that the journey to the cloud is fraught with challenges and complexities. With the right strategy, a focus on business value, a holistic approach, and a trusted advisor by your side, these challenges can be navigated successfully. An honest consultant who understands both the technology and your business is invaluable. They will walk side by side with you, providing value-add perspective and a real point of view and help to ensure that your cloud strategy manifests in the tangible business outcomes you expect.
Remember, the best advisors are those who tell you what you need to hear, regardless of whether or not that aligns with what you want to hear. They challenge your assumptions, provide fresh perspectives, and guide you toward making informed decisions. Inevitably, embarking on a transformational cloud enablement journey will be an expensive proposition. I would argue that hearing “yes that’s right” can be far less valuable than hearing “no, I don’t agree, and here’s why…”