Unisys performed a survey focused on State of the Cloud Transformation and a number of technology press pundits reported on the results. Sadly, many of them missed the boat.

 

Following are some of the more interesting and meaningful results for the US (100) participants:

  • 72% expected significant or some cost savings as a result of cloud migration.
  • 58% performed ROI analysis before deciding to migrate to the cloud; 32% are planning to perform an ROI.
  • Only 55% of cloud migration projects resulted in meeting saving targets.
  • Almost 50% experienced cost overruns.
  • 57% hit roadblocks that slowed down cloud migration; 15% hit roadblocks that stopped cloud migration altogether.

In summary:

  • Most companies that migrate to the cloud expect lower operational costs as a result.
  • Most companies perform ROI analysis before starting cloud migration projects.
  • In spite of this, only a little more than half resulted in meeting expected cost savings. Two reasons for this are cost overruns and roadblocks.
  • This is a cautionary tale, where even if you conduct a ROI analysis before you decide to start the project, there may be unexpected costs and roadblocks.

Cloud migration success rates could be improved if:

  • More analysis/planning is performed up-front with trusted advisers and 3rd party supporting vendors
  • Analysis takes all cloud-based expenses into account such as storage, data transfer, support and data processing
  • Executive management constantly communicates and reinforces the need for this project
  • Experienced, senior project manager is chosen, key team members are appointed and periodic meetings are held before, during and after project
  • Incentives are put in place to motivate employees involved in the project
  • Formal measurement program tracks progress and results.

For the complete survey results, click here.

For more insights from Edison Group, click here.