UK SMEs face cloud migration challenges, warns Six Degrees
The recent UK SME Cloud Intelligence Report 2024 by Six Degrees has shed light on the cloud migration hurdles that mid-market firms face in the UK. Based on a survey of 801 IT decision-makers conducted by Censuswide, the report revealed alarming insights into the cloud transition process, particularly highlighting financial and strategic pitfalls.
A staggering 80% of surveyed mid-market firms reported encountering unexpected costs during their public cloud migrations. This situation is compounded by the fact that 40% of these professionals felt rushed through the migration process. Specific roles, such as Heads of Infrastructure, experienced this urgency even more acutely, with 80% acknowledging the pressure to expedite their transitions. CEO Vince DeLuca pointed out that many organizations expect immediate cost savings but often discover that application modernization for realizing these savings is more complex and time-consuming than anticipated.
The report indicates that while 25% of IT decision-makers consider cost reduction as their primary motivation for migrating to the cloud, the reality often includes budget overruns. Notable financial incentives for cloud adoption also encompass flexibility (32%), reduced capital investment (28%), and decreased dependence on on-premises infrastructure (24%).
To overcome these challenges, experts suggest implementing a well-structured cloud adoption strategy from the outset. This approach should incorporate continuous management, governance, and FinOps integration to ensure a smooth transition. Engaging with a Managed Service Provider (MSP) is also critical, enabling organizations to secure expert guidance throughout the migration process.
Despite the challenges outlined in the report, many firms are motivated to adopt cloud technology for its potential to enhance efficiency, improve customer experience, and boost workforce productivity. Key success metrics are shifting – businesses are increasingly measuring effectiveness in terms of productivity, security, and application uptime rather than just immediate cost reductions.
DeLuca stresses the importance of setting realistic, long-term goals instead of relying on short-term expectations for cost savings. When managed properly, cloud transformation projects can lead to significant efficiency gains, risk mitigation, and ultimately lower business costs. Thus, UK SMEs must prioritize comprehensive strategies in their cloud migration journeys to unlock the full range of benefits available. For detailed insights, firms can refer to the UK SME Cloud Intelligence Report 2024 by Six Degrees.
