A major wave of transition to the Cloud is currently underway, the benefits of offering Cloud solutions having been validated over the past few years.

The first wave of ISV Cloud transitions was uneven in results with some notorious failures and other expensive lessons learned, partly due to the immaturity of platform offerings, partly due to a general lack of appreciation for the complexity of the transition from a business point of view. Today’s Cloud platforms are far superior in enabling ISV Cloud transitions and their ongoing operations. Nevertheless, those significant business challenges do remain for pure play startups as well as established on-premises ISVs transitioning, primarily in these seven areas:

Meanwhile, what Saugatuck calls the Boundary-free Enterprise and its enabling master architecture have introduced additional capability and complexity and synergy – Collaboration, Social, Mobile, Analytics – as well as integration between Cloud and on-premises data assets. In this series of Strategic Perspectives, we consider not only the challenges of the initial ISV transition to the Cloud, but also the additional challenges that await Cloud ISVs as the terms of competition in the Cloud continue to evolve.
To summarize, the key technology challenges are:

  • Technology Strategy for the Cloud, e.g., Platform, Infrastructure Services
  • Multi-tenancy vs. Virtualization
  • Managing both Cloud & On-Prem Versions
  • Integration / Customization Strategies
  • Social / Mobile / Advanced Analytics – Embedding vs. Loosely Coupled
  • Managing R&D for Solutions & Efficient Ops

Transitioning ISVs, however, need not reinvent the wheel. There are many proven best practices for meeting technology challenges. Each organization will find its own solutions according to its Cloud strategy.
Based on our 10 years of research, we conclude that the correct way to view the Cloud transition is as a series of organically-interrelated activities. Technology impacts Operations, Culture impacts Organization, Partnering and Alliances impact Sales and Marketing, and Executive / Financial impacts the other six – all in various permutations of mutual impact.

This blog originally appeared at Saugatuck Lens360.