NTT Data VP: Cloud-Native Adoption Starts at the Top

Cloud-native adoption, development and its onward management, enrichment and orchestration… It all starts not from the “bottom” (the application layer and the user interface function), but from the top — that is, the higher-tier business strategy and operational constructs around which an organization establishes itself.

This is the opinion offered currently by Charlie Li in his role as senior executive and vice president for the Cloud Services Division at NTT Data.

So then: Cloud starts at the top and not the bottom. Who knew, right? What then does Li really mean by this proposition and how does his firm’s platform support or help substantiate this claim?

“Unlike previous bottom-up approaches [which have proliferated throughout technology migration initiatives], today’s cloud adoption starts from the top down, aligning with overarching business strategies,” asserted Li, speaking to CloudNativeNow directly this month. “Rather than treating the cloud as an infrastructure platform per se, organizations now recognize its pivotal role in enhancing business processes, operations and services throughout the entire value chain. This coordinated approach grasps full-stack cloud services to deliver enhanced customer experiences with optimized back-end operations.”

Cloud Capabilities First, Cloud Costs Second

Proposing something of a cloud rethink as he is, NTT Data’s Li urges organizations to take their first (or indeed next) steps with cloud-native technologies by first viewing cloud adoption and modernization as a strategic business enabler, rather than just a technological or cost reduction asset.

While the turn of the millennium was beset with, “The cloud is eminently flexible and you can save on CapEx as a business shifts to OpEx” hyperbole, perhaps a more commercially realistic approach has subsequently emerged. Why might this be so? Li and team think that in no small part this is often down to the lack of a comprehensive FinOps or cloud economics strategy.

With the drive to digital (notice how we didn’t say that transformation word?) driving technologies such as AI, IoT and edge computing, the call from NTT Data is for CIOs to align their cloud expectations with broader organizational goals. This means prioritizing enhanced experiences, championing AI-driven automation and working to execute swift deployment of solutions across the entire enterprise.  Yes, it’s that “end-to-end” deployment term, but for real.

Courageous — or Tactically Advantageous?

So then, what makes this approach tactically advantageous?

“This strategic approach offers tactical advantages by shifting the focus from cost savings to leverage the cloud as a transformative force in IT consumption,” suggests Li. “Adopting cloud as a business enabler facilitates collaboration between business and IT teams, resulting in a comprehensive value chain integration. For example, by elevating the cloud conversation beyond IaaS and storage concerns, organizations can adopt and use cloud services to power industry solutions such as digital payments, real-time asset tracking, as well as enabling innovations like generative AI, while also bolstering back-end operations such as network services and security. This approach optimizes efficiencies, reduces costs, and enables a competitive edge to launch scalable business offerings faster.”

The sum result is what we might call, quite simply, an updated cloud strategy. It is one that the NTT team says begins with a thorough assessment of business objectives and evolves the strategy accordingly across the value chain. It features close collaboration between business and IT teams, coupled with a comprehensive FinOps strategy, which is crucial to ensure the integration delivers tangible growth and profitability through enhanced experiences and operational efficiencies.

“Planning for cloud integration and modernization demands active participation from both business and IT teams supported by a strong partner ecosystem to avoid fragmentation and ensure alignment with organizational objectives. Taking a vertical industry integration approach from a horizontal perspective enables solutions to seamlessly support overarching business goals and deliver sustained value throughout implementation,” said Li.

Potential Pitfalls, Perils and Precipices

Is it all plain sailing from here onwards then, or should we be aware of any new (or perhaps reshaped) pitfalls? Li’s engineering department say that they have drawn from customer experience to now highlight two key pitfalls.

“First, approaching cloud as a business enabler necessitates meticulous planning and analysis to understand its comprehensive impact emphasizing the importance of a comprehensive cloud economics strategy. Organizations should avoid focusing on short-term cost savings at the expense of long-term transformation goals,” they note. “Second, rigid cloud architectures can hinder adaptability. Flexibility is paramount, especially with the introduction of transformative technologies like generative AI.”

How should businesses move forward then? Unsurprisingly, NTT Data would tow the party line and recommend engaging with a global Systems Integrator to mitigate challenges. That being said (no prizes for guessing which SI service NTT Data recommends) this entire process is no garage band hobbyist programmer affair; it demands a corporate approach playbook drawn with experience derived from mission-critical deployments.