Gartner analysts predict that by 2026, three out of four organizations will pivot their digital transformation strategies around the cloud as their primary platform. Concurrently, the adoption of public cloud services is projected to drive a notable increase in end-user spending by over 20% in 2024.
However, despite this growth, around 32% of a company’s cloud budget is wasted, with a significant portion attributed to insufficient visibility into usage and efficiency. This phenomenon has got a specific definition – cloud waste or shelfware. It has become a real burden for various stakeholders, including customers, investors, and partners, because of a sunk budget. The environment also suffers from this situation due to excess resource consumption.
Drawing from experience, it’s evident that cloud waste can be managed, and organizations can leverage cloud migration to their advantage. Below, you can find strategies to address this challenge.
Prepare and Kick Off the Discovery Phase
The Discovery phase in software development cuts down the risk of overestimating or underestimating app modernization costs. Before Discovery, the cost estimate gap could be as big as 100%. But after Discovery, you can narrow it down, getting a more precise calculation with only a possible 20% gap.
First, collaborate with team members to craft a Proposal for the Discovery Phase. That should include cost estimates and the expected duration. Once stakeholders approve the proposal, begin the Discovery Phase. This phase usually lasts between 40 to 160 hours, depending on the project’s complexity. This timeframe is usually sufficient for gathering thorough data efficiently.
Design a Vision and Scope Document
The Vision and Scope document is vital for keeping everyone on the same page. It provides a strategic plan, or roadmap, that shows what to develop, when, and why.
This document also has some key sections. For instance, Business Requirements involve a thorough look at business risks, opportunities, goals, and, if needed, the market and competitors. Or Vision of the Solution, which provides a picture of the software’s final version, possibly with prototypes. Or Business Context that details ongoing software progress, changes in management focus, and any obstacles faced during development. It gets updated as development moves forward. Additionally, any other project-specific details can be included.
Incorporate Micro-Change Management into Your Legacy Modernization Process
Following the micro-change philosophy in cloud migration, this approach breaks big changes into smaller, incremental ones. It helps you prevent transforming your modernization plan into one overwhelming project. Also, you could implement advancements with a smaller budget, as dividing projects requires fewer resources.
Breaking a big project into smaller steps with clear goals shows all stakeholders real progress at each milestone. It also fights procrastination because small victories keep motivation high.
However, don’t mix up this strategy with quick fixes. They don’t stand for the fundamental change needed for digital transformation. Quick fixes might solve a problem temporarily, but they often just hide growing technical debt.
Unlike quick fixes, manageable microchanges allow for better control of risks and obstacles. At the same time, that requires proper preparation beforehand, which we described above.
Think about the Time and Material Pricing Model
In a time and material contract, the total project cost isn’t set from the start. You hire a contractor who supplies specialists at a fixed hourly or monthly rate. The final project cost depends on the actual hours worked.
Following this method, you could adapt project needs and scope easily, fitting with Agile management principles. The development process is done in iterations, each delivering a specific outcome, like a new feature.
You set fixed rates at the start, which stay the same. You’re not responsible for paying sick leave or holidays; the contractor handles that. You can begin development promptly and pay for the hours worked.
You can choose your level of involvement and stay in touch with the vendor’s project manager for updates and issue resolution.
Remember about Long-Term Perspective
Just like lifelong learning in our fast-changing world, expect your legacy modernization strategy to need updates over time. Think about setting up a clear process for adopting new ideas.
As an option, you can start by assigning an R&D team to explore digital trends, like new cloud or BI tools, and try them out. Then, assess the results and implement the most profitable solutions. On the one hand, it will be beneficial for your internal processes. On the other hand, you will be proactive in suggesting your customers innovative technologies.
Conclusion
In the complex world of software development, even one mistake can be costly, which is improved many times in real cases. While risks can’t be eliminated entirely, a detailed discovery phase and Vision and Scope Document give you a roadmap. You’ll spot potential obstacles and get a step-by-step plan to overcome them and reach your goal. Strike a balance between quick fixes and long-term gains. Micro-change management is your secret weapon to tackle this challenge and succeed.