The Role of Cloud Management Platforms in Optimizing Hybrid Cloud Spending

As hybrid cloud environments become more mature, enterprises are now shifting their focus from cloud migration to spending optimization. In other words, not just getting to the cloud, but managing a hybrid cloud environment in a cost-effective manner. And, this need to optimize spending is pushing companies to leverage a host of third-party cloud management platforms (CMPs). These providers help clients devise spending-optimization strategies, implement cloud brokerage services, and automate governance and real-time compliance.

These and other trends are covered in Avasant’s Hybrid Enterprise Cloud Services 2019-2020 RadarView™ report, a comprehensive study on the hybrid enterprise cloud services arena, packed with industry-first insights, analysis, and a close look at the leaders, disruptors, innovators, and challengers in this market.

The report assists decision makers in understanding the trends in this space and identifies cloud system integrators (SIs) that can help migrate monolithic applications to the cloud and then manage them after the migration. The report includes Avasant’s view on the road ahead for enterprises leveraging hybrid enterprise cloud over the next 12 to 18 months.

Avasant evaluated 41 cloud SIs through a rigorous methodology across the dimensions of practice maturity, partnership ecosystem, and investments and innovation. The report recognizes the top 24 cloud SIs that brought the most value to the market over the last 12 months.

The RadarView recognizes service providers in four categories:

• • Leaders: Accenture, Capgemini, Cognizant, HCL, IBM, NTT, TCS, and Wipro.
  • Innovators: Atos|Syntel, CenturyLink, DXC, Infosys, Orange Business Services, Tech Mahindra, and Zensar.
  • Disruptors: Fujitsu, Mphasis, Mindtree, NIIT Technologies, Unisys, and UST Global.
  • Challengers: Birlasoft, CGI, and Hexaware.

These four categories are illustrated in Figure 1 from the full report:

“There has been a sustained increase in the adoption of hybrid cloud strategies over the last 12 months,” said Shubham Pandey, Avasant’s lead analyst. “Thus, it is critical for enterprises to identify cloud system integrators that can help migrate applications to the cloud and manage the resulting environment.”

The report includes recommendations for organizations migrating to the cloud:

1. Select cloud SIs with extensive hybrid IT experience and diverse partnerships:
   • Seek cloud SIs that have large application migration and rationalization expertise, structured training programs, flexible pricing models, and extended global coverage.
   • Partner with SIs with expertise in industry-specific processes, ability to address multivendor integration issues, involvement in joint-solution development and integrated joint-marketing programs, and combined thought leadership across business processes.
2. Make optimization of cloud spending and discounts a top priority:
   • Increase the focus on optimizing cloud spending. At the same time, companies should use all the negotiation tools they have available in their contracts with cloud providers, such as volume discounts, usage of specific resources, and spot instances.
   • Leverage third-party benchmarks and integrate third-party cloud management tools to reduce overall spending.
3. Transform central cloud teams and invest in upskilling existing resources:
   • Invest in hiring process redesign, change management, and training to develop skills around cloud management, development, cloud brokerage, spending optimization, and automation.
   • Upskill cloud experts with emerging technologies such as AI, ML, NLP, and Internet of Things (IoT), in addition to core cloud-native technical capabilities.

The full report also features detailed RadarView profiles of the top 24 service providers along with their solutions, offerings, and experience in assisting clients in their digital transformation journey. The report highlights how the service provider landscape has evolved, not only in terms of categorization but also in the way they are investing in developing talent, enhancing their solution portfolios, expanding into new geographies, and strengthening their partner networks. Accordingly, the service providers are judged on practice maturity, partnership ecosystem, and investments and innovation.

This Research Byte is a brief overview of the full Hybrid Enterprise Cloud Services 2019-2020 RadarView™ report. The full report is available at no charge for Avasant Research subscribers, or it may be purchased by non-subscribers directly from our website (click for pricing).