By Mike Jennett, Global Director Platform Strategy, CloudBlue 

As worldwide end-user spending on public cloud services is forecasted to total $723.4 billion in 2025, up from $595.7 billion in 2024, businesses are doubling down on their cloud investments to stay competitive in an increasingly digital economy. However, while experience with cloud platforms is growing, many organizations find themselves entangled in a web of operational complexities that undermine their efforts.  

The shift to the cloud demands more than migration-it requires strategic planning, robust infrastructure and the right team to embrace this new norm where traditional IT responsibilities are often outsourced. There are common missteps to avoid, such as treating cloud environments like on-premises infrastructure and the unchecked use of artificial intelligence (AI) tools which can lead to ballooning costs.  

This article will take a closer look at how organizations can streamline operations in the cloud, optimize monetization strategies and sidestep costly pitfalls to help maximize their cloud investments. 

Avoiding sticker shock 

Moving to the cloud eliminates the need for on-premise systems, providing benefits such as automatic software updates, scalability and reduced IT infrastructure overhead. However, the cost dynamics of cloud infrastructure can be misleading, especially for organizations new to the model. Initial discounts, free usage periods, or promotional offers often lure businesses into the cloud, but these incentives quickly expire as workloads scale. 

Companies may fall into the trap of treating cloud systems like traditional infrastructure, running resource-intensive programs 24/7. This approach can lead to unexpected expenses that far exceed expectations. 

Implementing the right tools to track resource usage and predict spending patterns is crucial. Utilizing AI and machine learning can provide powerful insights, analyzing historical data to identify spending trends and seasonal fluctuations. These technologies can help organizations identify inefficiencies and adjust resource allocation accordingly.  

Break the broken  

When migrating on-premises systems to the cloud, many organizations neglect a deep dive into legacy systems, leading to incompatibility issues post-migration. Directly transferring applications with a "lift and shift" approach without modernization often results in failures and costly rework.  

When compatibility issues arise post-migration organizations are forced into a reactive mode - identifying and addressing problems after they've already disrupted operations. This can lead to extensive rework, particularly when legacy systems are involved. For instance, software that has been in use for a decade or more may rely on outdated configurations that fail in the cloud environment. The result is an unexpected and costly cycle of debugging and retrofitting. In some cases, companies may need to temporarily revert to their on-premises setups to maintain functionality while resolving cloud-related issues.  

While modernization efforts may reveal that some older applications are not suited for cloud migration, addressing these challenges upfront can prevent costly disruptions and ensure a more seamless transition. This forward-thinking approach allows for a structured migration plan that takes into account the unique demands of the cloud environment. 

The human factor 

Outsourcing cloud infrastructure can bring expertise and scalability, but the right people-both internally and externally-can ensure decisions are strategic, sustainable and aligned with the organization's broader objectives.  

Cloud migration often raises concerns within IT departments about downsizing, making it crucial to communicate clearly and involve the internal team in the process. By leveraging existing talent and retraining staff where necessary, organizations can alleviate fears and promote a sense of inclusion. Assessing whether outsourcing certain functions to cloud service providers is more cost-effective than maintaining them in-house is a pivotal consideration.  

Key steps to streamlining operations 

1. Plan with precision: Conducting a comprehensive audit of existing systems, software versions and networking setups is essential to identify gaps and ensure compatibility. This process helps determine which components need updates or replacements before migration. Proper planning also ensures the migration aligns with the organization's overall goals and sets a foundation for a smoother transition to the cloud.
2. Optimize infrastructure: Leveraging machine learning and AI for predictive analytics helps organizations to model project costs accurately and analyze historical usage patterns. These tools can identify idle resources and allow businesses to reduce waste.
3. Utilize cloud monetization tools: Centralized platforms provide visibility into cloud spending, making it easier to allocate costs across departments. Automation also plays a vital role, particularly during periods of fluctuating demand. For example, organizations can scale resources during peak periods, such as accounting firms during tax season, and throttle them down afterward, ensuring optimal resource usage without overspending.
4. Focus on ROI: Balancing the upfront costs of migration with potential long-term savings is critical. This includes savings on staffing, infrastructure upgrades and ongoing operations. For instance, conducting a three-year cost-benefit analysis helps organizations model potential savings and justify the investment in cloud migration, offering a comprehensive view of the financial benefits over time. 
   

Planning, planning, planning  

The power of planning cannot be overstated when it comes to managing a complex cloud landscape. Cloud management should be seen as an ongoing strategy requiring strong infrastructure, combined with the right team and the right tools. By tackling challenges-like keeping costs in check, updating old systems or giving your team clear direction-businesses can avoid common pitfalls.  

Good planning aligns each step with long-term goals to help organizations stay nimble and competitive. It can turn complexity into opportunity, uncertainty into innovation and investments into measurable returns.

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ABOUT THE AUTHOR

Mike Jennett, Director of CloudBlue Platform Strategy, is an accomplished business and technology executive. With a deep focus on product development and go-to-market strategy, he plays a pivotal role driving strategic growth and market expansion. Mike’s career is characterized by his adeptness in driving technological advancements and his commitment to leading digital transformations with experience including IDC where he was VP of the Mobility and Digital Transformation IEP practices, and HP where he held numerous leadership roles. Mike’s expertise is also reflected in his published works and contributions to multiple tech publications. Mike holds a B.A. from California Polytechnic University.