(December 20, 2023) The cloud isn’t just another technology — cloud initiatives have become a critical component of the IT infrastructure in many organizations. It provides cost-effective access to enterprise-grade computing power, storage, analytics, and programming tools that would otherwise be out of reach for all but the world’s largest businesses. It also enables greater efficiency — a key focus of today’s executives.
Nevertheless, many executives who control the business purse strings are scrutinizing cloud costs. In many organizations, the cloud represents half of the IT budget. With cloud costs increasing by as much as 20 percent, executives are increasingly skeptical that cloud initiatives will deliver their expected value. Additionally, many cloud services have been adopted without a clear strategy, and expenses have not been carefully tracked.
As a result, getting executive support for cloud projects can be tricky. Non-technical executives require a clear justification before committing precious dollars and resources. Here are some ways to discuss cloud initiatives with executives:
- Build the business case. Skip the technical jargon and describe how the technology will support business strategy and align with business priorities. Describe how the cloud will allow you to add processing power and storage as needed to support specific business processes, or how it will improve the company’s business continuity and disaster recovery capabilities.
- Be specific. Clearly define the resources needed to produce a desired business outcome. If any incremental purchases, projects, hiring or outsourcing are required, provide a complete list of these details.
- Set expectations. Describe what’s possible — and what isn’t. In one study, 82 percent of IT leaders said their companies’ execs don’t fully understand how the cloud works and 76 percent said execs underestimate the time and cost of cloud management. When business leaders have unrealistic expectations about a project, it can result in misaligned objectives, disappointment, and friction.
- Provide options. Not every application or workload is suitable for the cloud. Identify which apps can be migrated easily, which may need to be redesigned or replaced, and which should remain in-house. Be prepared to explain why a public, private, hybrid, or multi-cloud approach may work best for specific workloads.
- Establish the cost benefits. Describe the benefits of shifting from a CapEx to an OpEx spending model. Show specifically where the business can reduce the time, money, and manpower required to purchase, deploy, maintain, manage, and upgrade on-premises solutions. Don’t overstate the benefits, however. It’s important to be frank about the fact that cloud cost overruns are fairly common, often due to secondary costs for things like readiness assessments, connectivity upgrades, security, and skills development.
- Demonstrate success. Tests, feasibility studies, and pilot programs help demonstrate how the technology will work in practice. A proof of concept can help build confidence among decision-makers by demonstrating how the cloud application or service will work in real-world conditions.
- Address security concerns. Security remains a legitimate concern with the cloud. Nearly 80 percent of companies in a recent IDC survey reported they had experienced at least one cloud data breach in the past 18 months. Describe specific security measures that will address these risks, including access controls, encryption, multifactor authentication, and end-user training.
While most executives understand the business-critical nature of IT, few are technology experts. To make a convincing business case for cloud investments, IT leaders must be able to demonstrate how the cloud touches every aspect of the business. They must also link cloud spending to specific business processes that support the organization’s overall mission.
If you are unsure how to make your case, we can help. Mainstream’s consultants are skilled in presenting technical information to non-technical audiences and can help you build a solid business case for cloud adoption.
ABOUT MAINSTREAM TECHNOLOGIES
Mainstream Technologies delivers a full range of technology services in Arkansas and the surrounding region including managed technology services and consulting, custom software development, and cybersecurity services. We also offer industry-leading data center services in our Little Rock facilities. Established in 1996, Mainstream has earned a reputation for delivering quality, reliable, and professional technology services for public and private-sector customers across the United States.
Jeff Pracht
IT Business Development Manager
(479) 715-8629 Office
(501) 529-0008 Mobile
