Top challenges of cloud computing—and how to overcome them

94% of leaders use cloud services for their technology initiatives. But more than 70% of organizations struggle to drive customer value with the cloud. 

The key to success? Understanding the common challenges of cloud computing—and consequently how to solve them. In this article, we cover the evolution of the cloud, common challenges, and how organizations can make the most of their cloud investments.

Build your cloud transformation strategy.

Cloud computing is no longer a matter of just scaling server and database capabilities up or down based on demand. It’s also transforming the way people collaborate, use data and analytics, process large amounts of data, and generate business outcome predictions using machine learning models and generative AI.

Home Depot is a great example of how cloud services have changed operations. As Home Depot’s store footprint grew, they found it difficult to scale. It was just too expensive to continue stacking servers and purchasing licenses for their data warehouse. So they migrated their data warehouse to the cloud, along with the related supply chain dynamics. 

Now that they’re in the cloud, Home Depot is able to enter new geographies faster and stock their shelves with the right items at the right time. They’ve since taken it a step further, using machine learning for advanced inventory management and predictions about shopping behaviors.

Cloud transformation is easy to talk about, but hard to actually implement at scale because it involves three aspects of your organization: people, process, and technology. 

For the last decade, the focus has been on technology. Now we’ve reached a point where digital transformations stall not because of the technology, but because of the people and processes (or lack thereof). 

As organizations migrate to the cloud, they’ve been building on and creating new systems without replacing old ones. This technical debt makes it increasingly difficult to meet new technology expectations. 

But if your organization can drop the technical debt, you can use the cloud to more easily develop, implement, and maintain your systems. Here’s how to overcome common cloud challenges.

The first challenge of cloud computing is getting executive buy-in. Most executives already understand the value of cloud, but they’re still looking out for the financial stability of the organization. 

Cloud computing is a risk. It’s your job to put that risk in perspective by building a business case. Identify a clear set of cloud transformation objectives over a one to three year period. It helps remove the C-suite skepticism and gives you something to rally your troops behind.

You already have the people you need to succeed in the cloud. You just need to train them. But providing learning materials and encouraging your team to build tech skills are two separate things. 

A skill development strategy outlines how you’ll help your teams learn new tech skills. This includes identifying skills gaps, selecting a learning platform, and fostering a culture of learning. It also outlines the responsibilities and technical capabilities needed to move from one role to the next. An upskilling strategy provides a structured environment for skill development that aligns with organizational objectives.

Change can be scary. A change as large as cloud transformation is almost guaranteed to create frustration and uncertainty.

You need a team dedicated to supporting your teams throughout this transition and ensuring they have the right training, tools, and support to succeed. This team is responsible for creating best practices, disseminating information, and enabling the rest of your organization to migrate to the cloud. 

One of the best forms of enablement is showing your team what success looks like in the cloud. Shoutouts are one way to do this. Pick three projects that are going well. During a team meeting or town hall, celebrate the people running the project. Point out what they’re doing well and award their progress. 

It’s easier for people to emulate what they see, rather than what they’re told. The result? More successful projects with better key results.

Learn 4 ways to build a culture of change management and adaptability.

Cloud computing causes massive shifts in the way organizations operate. You need partners that support your cloud transformation journey. If your current partners can’t adapt or shift to help you overcome your cloud computing challenges, it might be time to find some new ones.

Once everyone’s on board with your cloud transformation project, you need to solidify the main objectives and identify key metrics to measure success. This will ensure cloud transformation aligns with organizational objectives.

Objectives and key results (OKRs) are well structured for this type of transformation. The objective is the goal you’re trying to achieve. The key results are metrics that support that objective. Monitor these OKRs weekly to make sure they’re moving in the right direction.

For example, if your objective is to modernize your infrastructure, you might track uptime or resiliency, along with time to market or the number of apps you’ve migrated from your data centers. Or if you want to reduce costs, you might calculate the cost of decommissioned servers or compare computing costs before and after the migration.

Cloud computing isn’t without its challenges, but the benefits far outweigh the risks. As long as you have a cloud transformation strategy, you’ll be able to tackle these challenges and make the most of your cloud services. 

Get expert insights to build a cloud transformation strategy.