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What is a Multi-Cloud Strategy?

A multi-cloud strategy involves employing two or more cloud computing services offered by various cloud providers, all of which complement and expand upon the capabilities of an organization's private cloud infrastructure. This generally entails utilizing Infrastructure-as-a-Service (IaaS) offerings provided not only by multiple cloud vendors but also by an organization's on-premises or private cloud setup.

Numerous enterprises opt for a multi-cloud strategy either to ensure redundancy and minimize the risk of being locked into a single vendor, or to tailor their approach to the specific requirements of applications. This customization could involve leveraging the strengths of a particular cloud provider in terms of capacity or features, or making use of services available within a specific geographic region.


Why Opt for a Multi-Cloud Strategy?

There are several compelling reasons why organizations embrace an enterprise multi-cloud strategy. Leveraging a mix of cloud services from diverse providers offers these benefits, among others:


Modernization:

As organizations increasingly adopt cloud-native applications built on containers, microservices, and APIs, a multi-cloud strategy provides access to the widest array of services for crafting new applications.

Flexibility and Scalability:

Utilizing multiple cloud providers can avert the risks of vendor lock-in, provide negotiation leverage, and expose the organization to novel capabilities specific to additional providers. Moreover, as demand fluctuates, multi-cloud providers can swiftly accommodate capacity increases or decreases.


Enhanced Best Practices:

Transferring best practices gained from working with one cloud to other public and private clouds.


Regulatory Compliance:

Not all cloud providers extend services or store data within every geographic region. A multi-cloud strategy can assist in ensuring the organization's adherence to an extensive range of regulatory and governance requirements, such as GDPR in Europe.


What are the Advantages of a Multi-Cloud Strategy?


Agility and Freedom of Choice:

Organizations that adopt a multi-cloud strategy can cater to the demands of their entire application portfolio, overcoming challenges posed by legacy infrastructure and limited internal resources. This approach bestows the agility and flexibility necessary to maintain competitiveness in their respective markets. A robust multi-cloud strategy empowers organizations to methodically transition workloads and update their application portfolio using cloud-specific services tailored to each application's needs.

Harnessing Optimal Services:

Organizations have the opportunity to select the most suitable cloud platform, featuring the finest technology solution at an attractive price point. This involves choosing physical locations, databases, service level agreements, pricing structures, and performance attributes from each provider while crafting a comprehensive cloud solution that aligns with immediate business requirements.

Modernization and Innovation:

Cutting-edge orchestration tools can automate the management of a multi-cloud strategy, encompassing both cloud-based and on-premises workloads. This automation liberates valuable IT resources, allowing them to concentrate on the modernization of code and the pursuit of innovation through new services, products, and platforms that consistently emerge.

Enhanced Security:

Multi-cloud strategies often incorporate the adoption of a zero-trust approach to cloud security, guaranteeing the security of every cloud interaction and transaction. While major cloud providers offer top-tier physical security, the responsibility for logical security remains with each organization that employs cloud providers for their IaaS platforms.

Negotiating Prices:

Employing multiple cloud providers grants organizations the power to negotiate pricing, as providers vie to offer IaaS services to an increasingly informed customer base. Organizations can assess different providers to secure the most favorable price and contract terms for each engagement.

Mitigated Risk:

Leveraging multiple cloud providers acts as a safeguard against infrastructure breakdowns or cyber-attacks. Organizations can swiftly transition workloads from one cloud provider to another in the event of a problem and migrate them back once the issue is resolved.

Enabling Digital Transformation through a Multi-Cloud Strategy Crafting a Multi-Cloud Strategy for Digital Transformation: To develop a multi-cloud strategy that fosters digital transformation, organizations should initiate the process by assessing application requirements and technical/business needs—both within cloud environments and on-premises setups. Key motivations often include:

  1. Cost Efficiency: Minimizing infrastructure expenses by migrating workloads to the cloud provider with the most competitive pricing models.

  2. Speedy Delivery: Accelerating application deployment by provisioning development resources as needed.

  3. Efficient Resource Allocation: Enhancing IT efficiency by reallocating manpower previously dedicated to managing on-premises resources.

  4. Operational Expenditure (OpEx) Transition: Shifting from capital expenditure (CapEx) to operational expenditure (OpEx) by eliminating in-house infrastructure entirely.

Once needs are assessed, organizations should strategically select cloud services to fulfill those needs. Key considerations for a multi-cloud strategy include:

  1. Existing Applications: Identifying applications currently hosted by specific cloud providers.

  2. Distinct Provider Benefits: Recognizing unique advantages of each cloud provider and their alignment with current needs.

  3. Relationship with Current Providers: Evaluating the broader context of existing cloud provider partnerships.

  4. Vendor Lock-in Concerns: Assessing potential issues related to vendor dependency.

  5. Strategic Business Benefits: Identifying how a multi-cloud approach addresses compliance, governance, and other business-related concerns.

However, potential roadblocks must also be addressed, such as dealing with siloed data, data migration challenges, and the complexities of transitioning between different cloud providers' architectures.

Implementing Multi-Cloud Governance: Organizations should establish a governance strategy to ensure consistent application of policies across the enterprise. This prevents the use of unauthorized "shadow IT" resources and maintains adherence to defined standards. This shift positions IT as a broker rather than solely a developer, facilitating the availability of cloud resources while ensuring compliance with policies.

Avoiding Pitfalls and Ensuring Success:

  • Selecting the Right Services: Rather than pursuing the perfect match for each application, focus on platforms that meet defined needs, avoiding unnecessary complexity.

  • Skill Development: Recognize that a multi-cloud approach demands additional skills. Provide necessary training to stakeholders to manage the strategy effectively.

  • Cost Management: Be vigilant about costs and avoid operational discrepancies that may arise due to different cloud platforms.

  • Measuring Progress: Continuously evaluate the success of the multi-cloud strategy, measuring ROI and reduced TCO, and share these outcomes with stakeholders.

Embracing Modernization: For organizations seeking modern, cloud-native operations, embracing innovation is key. Encourage novel approaches to development, DevOps, and deployment, fostering accelerated growth and improved engagement through methods like chatbots and mobile applications.

By adhering to these steps and principles, organizations can harness the power of a multi-cloud strategy to drive digital transformation effectively.


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