Cloud computing is a valuable tool for businesses around the world. It is praised for its ability to increase agility, reduce costs, and drive innovation.

With the digital landscape constantly changing and expanding, cloud computing is seen as a beacon of hope in this ever-evolving environment.

However, embarking on the cloud migration journey unveils a spectrum of challenges.

In this blog post, we will discuss the top cloud integration issues and how to overcome them.

Cloud Integration Issues and How to Overcome Them​

1. Cost Control​

The allure of cloud computing often lies in its promise of reduced operational costs.

However, the reality of cloud migration can quickly become a series of spiraling expenses. Managing a cloud budget can be difficult because cloud services are always changing and different departments have unexpected needs.

Anticipating these issues and creating a cloud governance program is essential. This helps manage cloud expenses by setting clear guidelines and making sure the migration stays within the organization’s budget.

A Failed Payroll System Implementation

Panorama’s Expert Witness team was retained to provide a forensic analysis and written report to the court regarding the failed implementation of a major software developer’s ERP/payroll system.

2. Security and Compliance​

As businesses transition to the cloud, data security should evolve. The cloud’s expansive nature introduces new vulnerabilities, making robust cybersecurity measures and compliance with data protection regulations more crucial than ever.

Our software experts on our expert witness engagements have seen projects fail without continuous monitoring and security audits. These measures strengthen your defenses against cyber threats.

3. Navigating Scope Creep​

Cloud migration projects, especially cloud ERP projects, often expand far beyond the original project scope. This derails projects, inflates budgets, and compromises objectives.

We recommend establishing a governance framework for managing change requests. You need a review board and clear criteria for approving changes, ensuring the project remains aligned with its initial goals. This approach mitigates the risk of cloud ERP failure.

For instance, GlobalTech’s cloud migration project initially set out to move 50 applications to the cloud within a year. As departments requested additional features, the project scope began to expand uncontrollably.

GlobalTech successfully completed the migration on time and within budget by implementing a change management board. This board carefully reviewed and approved changes based on strict criteria, effectively preventing scope creep.

4. Staffing Shortages​

The shift to cloud computing requires a distinct set of skills.

However, the demand for these skills often outstrips supply, creating a significant challenge for organizations.

Upskilling existing employees and investing in continuous learning are key strategies to employ. Organizations can make cloud integration easier by building a team with the right skills. This team can help navigate the complexities of cloud integration.

5. Project Planning​

Understanding the impact on operations, security, and resources is vital for a transition that minimizes disruption and maximizes benefits.

Devoting time to comprehensively plan the migration, considering both the short-term and long-term objectives, ensures your project is scalable and aligned with your organization’s growth aspirations.

6. Modifying Existing Applications

It’s unrealistic to expect that you can simply move all your existing applications from your on-premises environment into a cloud-based one. This is a common misconception that often occurs when companies follow a “lift and shift” business model. These models require companies to transition their workloads rapidly to minimize mitigation costs.

You must modify your applications to make sure they can operate efficiently in a cloud environment. This way, you can utilize the applications’ native features while also increasing your scalability, agility, and overall resiliency.

7. Ensuring Stakeholder Buy-In

Data migration in ERP is a collective endeavor requiring the support and alignment of all stakeholders, from executives to end-users.

Developing a clear communication strategy that addresses the concerns and needs of all stakeholder groups is key. This approach facilitates a unified vision and smooth transition to the cloud.

8. Understanding Workflow and Storage Needs

Accurately assessing workflow and storage needs is crucial for choosing a suitable cloud configuration. This foresight ensures the cloud infrastructure can support the organization’s needs, both now and in the future.

When interacting with ERP vendors, it is important to have a clear understanding of your performance requirements and storage needs. This will help ensure that the cloud configuration you choose is strong enough to support your organization’s operations.

The Future of Cloud Computing

As businesses increasingly adopt cloud services, we will see a significant shift towards more sophisticated, AI-driven cloud platforms.

The integration of edge computing with cloud infrastructures will enhance processing speeds and reduce latency, making real-time data analysis more viable and powerful.
However, the road to cloud migration success is long and winding.

As you prepare to start this journey, our ERP consultants are here to help. Contact us below to learn more about the services we provide.

About the author

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As Director of Panorama’s Expert Witness Practice, Bill oversees all expert witness engagements. In addition, he concurrently provides oversight on a number of ERP selection and implementation projects for manufacturing, distribution, healthcare, and public sector clients.

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