DIFFERENCES BETWEEN TRADITIONAL IT & CLOUD SOLUTIONS
| Traditional Solution | Cloud Solution | ||
| Business Model | Revenue | License | Subscription |
| Financials | EBITDA | Recurring revenue | |
| Key performance indicators | License renewals | Growth rate & adoptions | |
| COGS | 10-15% | 30-35% | |
| Cloud Technology | Methodology | Waterfall | Agile |
| Releases | Biannual | Quarterly/Monthly | |
| Architecture | Single tenant | Multi-tenant | |
| Build | In house | Open to outsourcing | |
| Talent Readiness | Architect | Software | Cloud |
| Operations | Standard | Dev Ops | |
| Sales & Marketing | Traditional | Omni Channel | |
| Product Management | Infrastructure | Data Centre | Automated |
| Security | Software | Software & Devices | |
| Sales & Marketing | Acquisition | Offline | Online & Offline |
| Trials | No | Yes | |
| Pricing | Perpetual licensing | Subscription | |
| Customer Support | Key Performance Indicators | Units | Adoption & Reach |
| Implementation | Custom | Configuration & Set up | |
| Time to adoption | Months | Minutes to some hours |
It is important to start with a self assessment and defining your objective for the adoption of the cloud. The self assessment will define your current state of readiness, what needs to be done to achieve your goal and the assistance that you will need.
The ways to achieve cloud readiness for a business are:
- Determine your profitability and identify business models for scaling and building your business via the cloud
- Assess your readiness in terms of resources and prepare a budget
- Decide on your business strategy in line with your business objectives and delineate your change management strategy for migration to the new platform
- Identify, evaluate and select the appropriate cloud solution. Comprehensive solutions offer better scalability/growth options, with lesser operational issues and are also easier to manage with a single window
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