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The obvious advantages, including flexibility, agility, and value, keep organizations committed to cloud. Cloud has become a core technology for organizations that must drive IT transformation to stay competitive.
But challenges remain. Complexity is growing. Today’s leading cloud might not be tomorrow’s leading cloud. One cloud requires different emerging skills and certifications than another. Multi-cloud approaches, though common, increase the challenges of managing data and applications. Many organizations discover that costs skyrocket after a wide-ranging shift to cloud. And migrating their on-premises applications to cloud might cause critical damage to their business operations if something goes wrong.
For these reasons, hundreds of thousands of organizations still have extensive on-premise infrastructure—servers, storage, and networking. Typically, that infrastructure has been virtualized for years, and most organizations rely on it for key workloads that are essential for business operations and customer experiences. And as mitigating latency becomes a critical requirement, infrastructure at the edge becomes an emerging need as well.
But today’s on-premises infrastructure, sitting alongside cloud, comes with downsides as well. Organizations end up with unused compute, storage, and networking capacity that can’t be allocated to the cloud. Conversely, cloud capacity can’t be allocated to on-premise services. Different management stacks force organizations to invest in different processes and different skill sets. And of course, duplicating infrastructure drives up cost and complexity.