Hello. This is Michael Dornan with what’s important in the IT and business services industry this week.
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Applications and Cloud
IT leaders and the business leaders they support often differ on their preferred approaches to cloud migration. Business decision-makers want speed and are less keen to re-architect or rewrite applications, which are IT’s favored approaches [see Data Watch].
Data Watch
Background
Cloud migration continues at pace as enterprises look to optimize their application portfolio costs while, at the same time, accelerate investments in AI. Whether the priority is fast migration, cost savings or enabling the longer-term business benefits of being cloud-native, trade-offs of each impact business and IT differently.
The Details
- 57% of IT decision-makers anticipate rearchitecting applications during migration – their most preferred approach to migration.
- In contrast, business-based cloud decision-makers prefer to make minimal changes without impacting the application architecture.
What’s Next
In the past few years, we’ve seen a change in the role of the CIO, with business leaders often driving application decisions and, more recently, AI decisions. But, for cloud strategy and decision-making, our research shows the CIO is still primarily in control.
However, given the increasing influence business leaders have in technology decisions, CIOs will need to sell their preferred migration approach to the business in terms of the value it generates for the bottom line.
This will change how – and why – CIOs partner with the IT and business services ecosystem. Cloud migrations with a focus on re-architecting or re-writing applications will call for strong ADM capabilities, creating further opportunities for service providers.
Don’t forget to register for the 2Q24 ISG Index Call on July 11. We’ll be covering the latest in cloud and AI, as well as our IT and business services forecast for the balance of the year. Register here.
About the author
Michael Dornan
Michael Dornan is a Principal Analyst in Provider Services based in the UK. He is responsible for ISG’s Buyer Behavior research program, helping providers navigate changing market dynamics, identify unmet enterprise demand, and position services and solutions that align to client needs.
