Oracle Insight’s new business brief, “Modern Cloud Economics—Unlocking Business Value of Cloud for Enterprise Mission Critical Workloads,” is a C-suite’s guide to build and execute the Enterprise Cloud Strategy that delivers cloud’s full business value potential.
Below are excerpts, including the 11 principles of Modern Cloud Economics. Do you know what they are?
Cloud adoption as a mandate
The appetite for cloud adoption in enterprises is at an inflection point. Adopting cloud is no longer an option, but it is a mandate. And adopting cloud in mission critical domains is the next logical step for enterprises to gain competitiveness in the “new normal.”
Adopting cloud in mission critical is, however, proven to be challenging for most enterprises due to the requirements and risks unique to these domains. Adhering to the generally accepted principles of cloud economics is no longer adequate to achieve the expected value outcome.
Principles of Modern Cloud Economics
Second-generation cloud offerings (think Oracle Cloud Infrastructure) are being built to enable enterprises to apply the extended principles of cloud economics, that is, the principles of Modern Cloud Economics, for addressing the unique requirements, challenges, and concerns of adopting cloud in mission critical domains.
To break the barriers for cloud adoption (in traditionally harder-to-touch and harder-to-move mission critical domains) and make cloud adoption become truly transformative, enterprises must embrace the principles of Modern Cloud Economics. Furthermore, enterprises must implement the associated enablers of second-generation cloud.
Let’s look into each of the 11 principles of Modern Cloud Economics, divided into four categories.
Technology principles
Technology principles enable enterprises to apply the design-to-value and lean management practices across the end-to-end cloud deployment lifecycle from planning to provisioning to optimization to recycling. Aligning to technology principles help enterprises exploit the enablers of second-generation cloud. The principles are
1. Right-size on modern technology stack
2. Optimize usage continuously
3. Avoid bolting-on high availability, regulatory, and security measures
Operational principles
Operational principles enable enterprises to strike the optimal balance between human-led and machine-led tasks in migration, service delivery, and service operation. The principles are
4. Minimize frictions to ensure migration velocity
5. Exploit infrastructure evolution as a catalyst for innovation
6. Select machine power over manpower for enterprise-grade service assurance
Commercial principles
Commercial principles enable enterprises to continuously leverage the optimal commercial frameworks of a cloud service provider, based on the changing usage profiles and deployment requirements, thereby de-risking unexpected cost overruns, as well as maximizing the combined financial productivity of on-premises licenses, annual license support, and cloud subscription. The principles are
7. Delink data and network linear usage from cost
8. Avoid service deployment lock-in
9. Re-purpose on-premises spend to acquire future cloud capabilities
Value Management principles
Value Management principles enable enterprises to adopt real-time cloud financial management based on unit economics, that is, measuring cloud spend against business value metrics and making better informed decisions with speed. Value Management principles also inculcate a culture of cross-functional collaboration, as well as joint ownership and accountability over cloud financial management. The principles are
10. Create real-time transparency on usage, costs, and allocation
11. Collaborate cross-functionally to drive decision by business value
Learn more
Read the complete business brief for details about the 11 Modern Cloud Economics principles and how Oracle Cloud Infrastructure (OCI)—the most mature among the second-generation clouds in the market today—provides the enablers across all principles of Modern Cloud Economics.
Check out our new OCI infographic, Why OCI for Enterprise, as well as the Oracle Cloud Economics page on Oracle.com.