Cloud is the most indispensable technology companies will utilize in their business transformation as the world eases into a renewed economy after the disruption brought about by the COVID-19 pandemic. This is one of the key highlights at the recently concluded VST ECS CXO Innovation Summit gathered from the keynote sessions from various vendors and partners.
“During the pandemic, most businesses relied on multi-cloud with the Asia Pacific and Japan experiencing growth from 1.4 to 2.2 public clouds over the last two years or an increase of 57%,” said Walter So, country manager, VMware (Philippines) during his keynote at the summit. “This is expected to substantially increase in the coming years.”
In a study conducted by Vanson Bourne and commissioned by VMware, So pointed out that while many organizations in APJ have been embracing a multi-cloud approach, only a handful have a strategy on how to leverage it with 1 out of 5 organizations (21%) surveyed in APJ realizing the business value of multi-cloud.
“Only 38% say their multi-cloud strategy is fully defined,” So said. “What is (even) more challenging is that surveyed organizations in the Asia Pacific appear to have a disconnect between their applications and cloud strategies. A whopping 90% of respondents from multi-cloud organizations report that they have apps built to run across multiple clouds, allowing these organizations to increase app dev, DevOps, and IT productivity accordingly and get products and services to market faster.”
So also noted that operating in a multi-cloud environment allows enterprises to gain control and visibility across the entire infrastructure while running enterprise applications emphasizing that public and private cloud has their own set of rules.
While multi-cloud is gaining traction given the increase in workloads due to digital transformation, 68% of respondents say they struggle with managing multi-cloud because of its complexity. The study also found 56% of those surveyed in APJ believe organizations that do not adopt a multi-cloud approach risk failure.
This created Cloud Chaos, which according to the VMware study is slowing down businesses in the Asia Pacific (APAC).
Cloud Chaos has disparate development, ops, and security, and the cloud infrastructure is siloed. While end-users will have a fragmented app-access experience. On the other hand, Cloud Smart enterprises can accelerate their app development and has consistent app infrastrucuture providing end-users with a frictionless experience.
VMware introduced a Cloud Smart approach to enable organizations to deal with Cloud Chaos by allowing them to choose the right cloud for the right app.
According to the VMware study, 97% of cloud-smart organizations surveyed say their approach to multi-cloud has improved their revenue growth, and 96% say it has improved their profitability. When it comes to maximizing data, the study found Cloud Smart organizations are better equipped to turn data into money.
“A multi-cloud strategy enables innovation and it allows for clear business outcomes,” So said.
“Modernization can be in any of these areas like cybersecurity, data protection, storage, networking, cloud solutions, collaboration, process, automation, and many others,” said Jimmy Go, president and CEO of VST ECS Inc. during the summit. “However, there is no one size fits all. Every enterprise and every company is different but ultimately, IT modernization initiatives should resolve into business transformation.”