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Developing the right cloud strategy for SMEs and enterprises

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Author: Maximilian Schaugg
Author: Maximilian Schaugg

In a rapidly evolving digital world, companies are faced with the challenge of making their IT infrastructure flexible, secure and cost-efficient. The cloud offers immense opportunities here – but how can you use it properly?

A well-thought-out cloud strategy is the key to maximising the benefits of the cloud while minimising potential risks. But what does that mean for your company in concrete terms?

Imagine your business is growing faster than expected. Your existing IT systems are reaching their limits: servers are overloaded, new software is difficult to integrate and your IT teams are wasting valuable time on maintenance. This is exactly where a well-planned cloud strategy comes in. It shows you how to make the most of the cloud to:

  • Scale resources flexibly
  • Introduce innovative technologies faster
  • Ensure the security of your data
  • In this guide, you will learn which cloud models are suitable for your requirements, how to migrate your systems step by step and how to avoid typical mistakes. We explain the differences between public, private and hybrid clouds and help you decide which model best suits your needs.

  • We also look at the various cloud service models such as IaaS, PaaS and SaaS and show you specific examples of how they can be used in practice - from flexible infrastructure to turnkey software solutions.

  • We also highlight key security aspects that are often overlooked and give you valuable tips on how to manage your cloud spend efficiently.

  • By the end of this guide, you'll know the steps you need to take to develop a cloud strategy that will take your business to the next level - whether you already have cloud experience or are just starting out.

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What is a cloud strategy?

A cloud strategy is the overall plan that a company develops to effectively use cloud technologies. It sets out how and why the company should use cloud services to support its business goals.

A well-defined cloud strategy encompasses decisions on technologies, processes, security measures and cost optimisation. It is long-term in nature, covering a period of up to three years.

A comprehensive strategy also considers which cloud models (public, private or hybrid) and service models (IaaS, PaaS, SaaS) best suit the specific requirements of the company. It is based on long-term business goals such as scalability, cost efficiency and innovation.

Goals of a cloud strategy, symbolising efficiency and optimisation in cloud strategy.

Efficiency and cost optimization

Cloud technologies enable you to reduce fixed costs for IT infrastructure, as expensive hardware investments are no longer necessary. Costs become more flexible and consumption-based.

Scalability and flexibility

Accelerated innovation

Competitive advantage

Modern organizational structures

In addition, a sound cloud strategy must answer the following key questions: What role does the cloud play in the company? Does it primarily serve as a business enabler or as IT infrastructure?

Which cloud provider should be used? Hyperscalers such as AWS (Amazon Web Services), Microsoft Azure and GCP (Google Cloud Platform), or smaller, specialised providers (StackIT, DigitalOcean, Vultr)? Another important aspect is the efficient provision of cloud services to internal teams in order to maximise their flexibility.

Effective cost management across departmental boundaries is also essential to ensure transparent and efficient resource utilisation.

A cloud strategy not only provides the technical framework, but also supports business objectives through the strategic use of cloud technologies.

How do you develop a cloud strategy?

Nowadays, virtually no company can do without cloud services. However, those that operate without a clear cloud strategy are taking certain risks.

A lack of a structured plan can quickly lead to frustration among employees if, for example, cloud services cannot be used at all or only under uncertain legal conditions. There is also a risk that the company will assume liability risks that are normally covered by the cloud provider, such as securing the IT infrastructure or access to data centres.

Another frequently underestimated aspect is the cost: cloud services are not automatically cheaper than operating your own data centre. Without a well-thought-out strategy, unplanned costs can arise. As a result, the cost-benefit ratio suffers if the potential of the cloud is not fully exploited.

Important considerations:

Technological requirements: Check which applications are cloud-ready and which may need to be adapted or replaced.

Employee skills: Ensure that your IT department has the necessary skills to manage the cloud. External training or collaboration with a cloud provider may be required.

A solid strategy is therefore crucial to minimise these risks and leverage the cloud as a true business enabler. It ensures that both technical and legal frameworks are clarified, cost transparency prevails and all benefits can be exploited. You should start development with these six basic steps:

Six steps to a cloud strategy, symbolising a clear planning process in cloud strategy.
  • 1. Set goals: Define what the company wants to achieve by using the cloud. These include cost savings, agility, scalability and new business models.
  • 2. Analysis of the existing IT infrastructure: An inventory of the current infrastructure helps you to identify which applications and data can be migrated and where bottlenecks exist.
  • 3. Evaluation of cloud models and services: Choose the right cloud model (public, private or hybrid) and the appropriate cloud services (IaaS, PaaS, SaaS) based on your company's requirements.
  • 4. Determine security and compliance requirements: Define security measures and ensure that all relevant regulatory requirements (e.g. GDPR, HIPAA) are met.
  • 5. Cost analysis: Carry out a detailed cost-benefit analysis to assess the long-term savings of the cloud.
  • 6. Create a migration plan: Create a detailed plan for migrating your systems to the cloud, including a timeline, risk assessments and an exit plan for switching providers.

What types of cloud models are there?

Choosing the right cloud model is a critical step on the path to the cloud. Public, private and hybrid clouds offer different advantages in terms of cost, security and flexibility.

The option that best suits your business depends on your specific requirements. Would you prefer cost-effective, ready-to-use resources, or do you need maximum control over your data? Learn more about the differences and how to make the right decision now.

Public cloud

Here, a third-party provider (e.g. Amazon Web Services, Microsoft Azure, Google Cloud) provides IT resources via the internet. The infrastructure is shared by several customers, with each user having their data stored in isolation.

  • Advantages: No own hardware investments, immediate availability of resources, high scalability. Public clouds also offer the advantage of a global infrastructure.
  • Disadvantages: Less control over the environment, potential data protection and security concerns as the data is stored on external servers.

Sovereign cloud

Private cloud

Hybrid Cloud

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We develop tailor-made cloud strategies based on a thorough gap analysis that takes existing structures and cloud-specific requirements into account.

What types of cloud service models can you use?

Cloud services can be divided into three main categories: IaaS, PaaS and SaaS. Each of these service models offers different levels of control and management.

From infrastructure to the finished software solution – there is a suitable model for every requirement:

Cloud service models at a glance, symbolising choice and flexibility in cloud strategy.

IaaS (Infrastructure as a Service)

This model provides basic infrastructure such as computing power, networks and storage via the Internet. The user has full control over the operating systems and applications, while the cloud provider provides the hardware infrastructure.

An example:

Amazon EC2 (Elastic Compute Cloud) offers virtual servers that can be used and scaled as needed.

  • Advantages: Flexibility, as the infrastructure can be expanded or reduced as needed. The user retains full control over the IT environment.
  • Disadvantages: Requires technical expertise to manage and secure the infrastructure.

PaaS (Platform as a Service)

SaaS (Software as a Service)

It is important to note that the ‘vertical range’ of the cloud services offered varies. German and European providers in particular often only offer infrastructure (IaaS) and platform services (PaaS), while large international cloud providers such as Microsoft also offer software solutions as a service (SaaS), such as Dynamics 365, thanks to their market strength and experience.

In addition, there are independent SaaS providers that offer their customers multiple infrastructure options. Customers can then decide for themselves whether they want to run the respective software product with a large cloud provider or a German cloud service provider.

A combination of these methods often makes sense and is frequently used in practice. For example, certain data and applications that are particularly sensitive can be hosted in a sovereign cloud or by a German cloud provider, while less critical applications or scalable resources can run in the public cloud of a large provider.

This hybrid strategy enables companies to reap the benefits of both worlds: they benefit from the flexibility and scalability of large providers while meeting regional compliance requirements and data protection standards. Such combinations not only offer flexibility, but also the opportunity to optimally balance costs and security requirements.

What safety aspects need to be considered?

Security is one of the most important factors when it comes to the cloud. Without the right measures in place, sensitive data can be compromised, which can have significant legal and business consequences. But with the right security precautions in place in cloud security – from encryption to identity management – this risk can be minimised.

How can you enforce security standards, and what are the most important compliance requirements? Find out now which protective measures are crucial for your cloud strategy.

When using cloud technologies, it is generally advisable to conclude a data processing agreement with the respective cloud provider, even if no processing of personal data is currently planned.Such contracts are often a formal matter and are provided by cloud providers in automated processes. Nevertheless, it is important to conclude them in order to secure the legal framework.

A crucial point when it comes to cloud security and data protection is the shared responsibility model, which is implemented differently by different cloud providers.

Shared-Responsibility-Modell

The model divides responsibilities between the cloud provider and the customer. While the cloud provider is responsible for the basic infrastructure and its security, the customer is responsible for the security measures of the solutions built on the cloud.

This requires special security measures that vary depending on the type of solution. Cloud-native architectures in particular have specific requirements that differ from traditional architectures.

A general comparison with conventional software development is insufficient here, as cloud-specific features must be taken into account. To minimise risks, various security mechanisms should be implemented:

Security mechanisms for risk reduction symbolise essential protective measures in cloud strategy.

In addition, those responsible must ensure that they comply with industry-specific compliance requirements such as the GDPR or PCI DSS. This also includes regularly conducting audits and monitoring data sovereignty – especially with regard to the location of data centres.

The cloud provider should also be able to provide the necessary security certificates to ensure compliance with legal requirements. Overall, careful implementation of security standards and compliance with compliance requirements are essential for using the cloud securely and efficiently.

How can migration to the cloud be achieved?

The transition to the cloud is a complex task that requires careful planning. Whether lift-and-shift or complete redevelopment, there are various migration strategies that vary depending on your individual requirements.

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If a manager has already failed twice at cloud migration, there will either be no third migration or it will only take place with explicitly requested change support.
Matthias Ostermaier, Deputy Head of Collaborative Enterprise Architecture, MaibornWolff

How can you minimise downtime during the transition phase and ensure seamless operation? We present some methods and best practices to help you make the switch to the cloud as smooth as possible:

  • Lift-and-Shift: This is where existing applications are moved to the cloud without any changes. This is the simplest method, but cannot exploit all the advantages of the cloud.
  • Re-platforming: The application is slightly adapted to use cloud-specific functions, but retains its basic structure.
  • Refactoring: The application is completely redeveloped to make it cloud-native. This offers the greatest flexibility, but is also the most complex and costly approach.
  • Proof of Concept (PoC): A PoC plays an important role in the preparation and validation of cloud migration. A PoC allows you to check in advance how individual workloads and applications will behave in the cloud. This helps to identify potential technical challenges and limitations before the actual transition takes place. A PoC is particularly helpful for testing the feasibility of different approaches and minimizing potential risks at an early stage.
Challenges and solutions in cloud migration symbolise effective adaptation strategies in cloud strategy.

How is cost management optimised in the cloud?

Many decision-makers are often unaware that cloud costs cannot be calculated precisely, but only estimated. This means that the actual costs can vary depending on usage and other factors. The reason for this is the pay-per-use principle. The great strength of the cloud lies in the fact that there is no need to commit to long-term capacities for several years; instead, resource usage remains flexible.

It is precisely this flexibility that needs to be developed into a strength. By identifying and exploiting seasonal patterns in business, the platform can be made elastic and optimally adapted to requirements.

An Excel tool alone is not sufficient to deal with this complex cost scenario. A correctly configured billing console with a well-designed dashboard is essential. Alternatively, specialised third-party tools such as Apptio can be used to provide deeper insight into cloud cost mechanisms and efficiently control usage. With these additional tools and strategies, you can keep your cloud costs under control and manage them effectively:

Cost monitoring

Tools such as AWS Cost Explorer or Azure Cost Management provide detailed insights into cloud spending and help identify excessive costs in a timely manner.

Cost transparency

Automation of scaling

Cost Anomaly Detection

Optimization of cloud usage

Cost governance

Commitment to unit costs

The agile principle of ‘Inspect & Adapt’ is particularly useful for cost control in the cloud. With this method, expenditure is continuously reviewed and adjusted.

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Cloud-Kosten unter Kontrolle

Quick Wins & strategische Hebel für IT-Führungskräfte

What role do scalability and flexibility play?

The cloud enables companies to scale IT resources as needed and offers unprecedented flexibility. Whether you need to respond quickly to market changes or cushion seasonal demand spikes, the cloud makes it possible. Learn why scalability plays a critical role and how you can benefit from this flexibility.

The importance of scalability in the cloud:

A key advantage of the cloud over a local IT infrastructure (‘on premises’) is the shared use of resources, both from an economic and environmental perspective. In the cloud, IT resources can be scaled flexibly – both up and down. The latter is particularly difficult in a traditional data centre, especially if it is not designed according to the principles of a (private) cloud.

In such cases, servers often continue to run even when they are not needed. In a public cloud, on the other hand, other users can utilise the free capacity when I do not need it. However, this requires a software architecture that is specifically designed for this purpose, as is the case with cloud-native architecture.

Adapting the infrastructure to business requirements:

To enable efficient scaling up or down in the cloud, the reasons for doing so must be considered. These can be triggered by a growing or shrinking number of internal and external employees, as well as changes in the number of end users.

Such fluctuations can be seasonal or unpredictable. To be able to respond flexibly, it is crucial that the software architecture is designed for use in the cloud.

How is effective management and governance ensured?

Without clear rules and processes, cloud usage can quickly become confusing. Cloud governance defines how resources are managed, monitored and controlled to ensure efficient usage.

Cloud governance structures can be set up at different hierarchical levels within an organisation. It is important that they are lean and efficient. These structures can be organised, for example, as a Community of Practice (CoP), Centre of Excellence (CoE) or as a permanent team in a matrix organisation.

From a technical perspective, so-called landing zones are used here. Landing zones create a basic technical structure in the cloud that integrates governance and security from the outset. They provide standardised environments that meet both security specifications and compliance requirements and secure operations in the cloud.

Landing zones ensure that essential governance aspects and security measures (e.g. access controls, network and identity management) are defined and enforced before deployment. This reduces risks, accelerates cloud adoption and provides a solid foundation for all cloud activities.

The most suitable structure depends on the size and complexity of the organisation and the specific cloud use cases.

With the right tools, cloud resources can be monitored and security policies enforced in a targeted manner:

  • Dashboards and monitoring tools: Cloud providers offer tools to monitor the performance, costs and security of cloud resources in real time. This allows problems to be identified and resolved at an early stage
  • Automated policies: Tools such as AWS Lambda or Azure Policy enable companies to automatically enforce compliance with defined policies for cloud resources.

Suitable tooling that automates cost control is essential, even if it still requires people who understand the subject matter and ultimately make the decisions.

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What are the risks and challenges associated with cloud usage?

Although the cloud offers many advantages, there are some challenges that should not be ignored.

From security risks and compliance issues to performance bottlenecks, these can quickly become problems without the right measures in place. However, with a clear strategy, these challenges can be overcome.

Identify potential stumbling blocks early on and successfully avoid them:

Risks and challenges associated with cloud usage.

When it comes to risk management in the cloud, the following principle applies: absolute security is never possible. Instead, it is a matter of weighing up how much should be invested in mitigating certain risks.

However, with a sound cloud strategy, you can future-proof your IT infrastructure while minimising the risks associated with cloud use.

Cloud strategy – conclusion

A well-thought-out cloud strategy is key to harnessing the many benefits of the cloud for your business. It ensures that your IT infrastructure is not only more efficient, but also more flexible, cost-effective and future-proof.

However, the path to the cloud requires clear planning and careful consideration of the various options, starting with the selection of the appropriate cloud model and ending with the implementation of the right cloud service solutions, such as IaaS, PaaS or SaaS.

It is important to analyse exactly what your business goals are and how the cloud can help you achieve them. The choice between public, private and hybrid cloud depends on the specific requirements of your company – whether it is flexibility, cost control or data security. A clear strategy for migrating existing systems and continuous monitoring and adjustment of cloud usage are crucial to ensuring the performance and efficiency of your IT.

Security aspects play a central role in any cloud strategy. From encrypting sensitive data to complying with compliance requirements, without the right measures in place, cloud usage can quickly become a risk. Effective cost management is equally crucial to ensure that you actually realise the promised cost efficiency of the cloud.

The result of any successful cloud strategy should be the flexible scaling of IT resources and the dynamic adaptation of the infrastructure to the growing requirements of your company. Clear governance structures and constant monitoring of your cloud resources also ensure that your cloud solutions can be used efficiently and securely.

Cloud Strategy – FAQ

  • Why does my company need a cloud strategy?

    A cloud strategy is the foundation for ensuring that an organisation uses the cloud efficiently and securely. It helps to set clear goals, control costs and make the IT infrastructure future-proof. Without a well-thought-out strategy, you could overlook potential risks such as security gaps or unnecessary expenses.

  • What are the benefits of a cloud strategy?

    A cloud strategy offers many advantages: flexibility through scalable IT resources, cost savings through demand-oriented use and increased innovation speed. It enables you to integrate new technologies more quickly and make business processes more efficient.

  • What are the differences between public, private, hybrid and sovereign cloud?

    Sovereign cloud: This is a cloud infrastructure that is specifically designed to ensure the digital sovereignty of companies and institutions. It offers full control and transparency over the storage, processing and management of data, often in strict compliance with regional data protection regulations and compliance requirements.

    Private cloud: Here, you have full control over your data and infrastructure, which offers greater security but also incurs higher costs.

    Hybrid cloud: This combines both models and allows data to be moved back and forth between the public and private clouds, depending on security and flexibility requirements.

  • What is the difference between IaaS, PaaS and SaaS?

    IaaS (Infrastructure as a Service): Provides IT infrastructure (servers, storage, networks) on demand. Ideal for companies that want to run their own applications but don't want to buy hardware.

    PaaS (Platform as a Service): A development platform that provides the infrastructure needed to develop, test and deploy applications. It is well suited for developers.

    SaaS (Software as a Service): Provision of ready-made applications via the Internet. Examples include accounting software and email services.

  • What is a cloud-too strategy?

    A cloud-too strategy refers to the combination of cloud services with existing on-premise systems, resulting in a hybrid cloud environment. For each application – whether existing or new – an individual decision is made as to which environment it will be operated in in the future.

    Companies often choose this strategy when they cannot or do not want to migrate completely to the cloud due to regulatory requirements, security concerns or the complexity of their existing infrastructure. It offers flexibility by leveraging the advantages of cloud services such as scalability and innovation potential, while business-critical processes remain on existing systems. This strategy is particularly common in regulated industries such as finance and healthcare.

  • How do I develop a successful cloud strategy?

    The process begins with defining your business goals and analysing your existing IT infrastructure. You need to decide which applications will be migrated to the cloud and which will remain on-premises. You then select the appropriate cloud models and services and carefully plan the transition to minimise disruption.

  • What security aspects do I need to consider in my cloud strategy?

    Data security and compliance are crucial issues. You should implement measures such as data encryption, identity and access management (IAM) and regular security checks. In addition, industry-specific compliance requirements must be met in order to avoid legal risks.

  • How does migration to the cloud work?

    Migration to the cloud should be carried out gradually and with the help of a proof of concept (PoC) to minimise downtime. Methods such as ‘lift and shift’ (direct transfer to the cloud) or ‘refactoring’ (adaptation of applications) are possible. It is important to have a clear migration strategy that covers both technical implementation and employee training.

  • How can I control costs in the cloud?

    Cloud cost management begins with real-time monitoring of resource usage. Tools such as AWS Cost Explorer or Azure Cost Management help identify hidden costs and stay within budgets. You should also regularly check whether unused resources can be shut down and existing ones optimised.

  • Why is scalability important in the cloud?

    Scalability enables your company to respond quickly to changes in resource requirements without having to invest in additional hardware. The ability to dynamically adjust resources is a major advantage, especially during short-term increases in demand or seasonal peaks.

  • What are the most common challenges when using the cloud?

    The most common challenges include security concerns, compliance issues, vendor lock-in (dependence on a single provider) and performance bottlenecks. However, these risks can be mitigated with a clear strategy and the right technologies. Well-thought-out risk management is crucial to fully realising the benefits of the cloud.

Author: Maximilian Schaugg
Author: Maximilian Schaugg

Maximilian Schaugg has been working on cloud projects at MaibornWolff since July 2018. He specialises in the design, implementation and operation of cloud and container solutions in existing and new IT infrastructures. An important part of his work is focusing on the needs of his customers and taking a holistic approach to successfully completing projects from start to finish. In recent years, he has focused particularly on cloud migration, cloud consulting and cloud platform development, where he has been able to apply and further deepen his in-depth knowledge, especially in the critical areas of security, cost efficiency and governance.

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