This is an Insight article presented by Microsoft.
The great cloud migration is still in full swing, with many organizations actively advancing their cloud strategies. Today, the push for cloud adoption is increasingly driven by a desire to harness the power of AI, particularly generative AI. Tony Korolis, Senior Product Marketing Manager for Azure at Microsoft, notes that his team has witnessed this transformation firsthand. His team oversees two critical Azure offerings: Azure Migrate and Modernize & Azure Innovate, which assist customers in accelerating their cloud journeys.
“Customers are not only seeking assistance in migrating their existing setups but also in leveraging the cloud to harness AI for developing innovative products and services,” says Korolis. “In the coming year, the number of AI-focused customers may surpass those merely migrating their systems through our Azure offerings.”
This trend isn’t just about keeping up with industry changes, but also about observing early adopters successfully implement AI use cases that were once theoretical, transforming day-to-day operations and enhancing profitability. Cloud technology democratizes access to scalable, cost-effective computing power, empowering organizations of all sizes to capitalize on AI.
However, many companies discover that fully realizing the benefits of cloud computing requires a disciplined approach. “Many organizations embark on cloud strategies assuming automatic cost savings,” explains Korolis. “The reality is the cloud incurs more than just straightforward expenses; it demands governance and effort to achieve a return on investment.”
Understanding the True Cost of Cloud Computing and AI
Some cloud computing costs are evident — initial investments in technology and professional services for implementation. However, ongoing consumption costs also need centralized management. If some applications remain on-premises, organizations must manage both environments, which adds complexity. Moreover, investing time and resources in training, reskilling, or upskilling team members involved in cloud strategies is crucial.
“Training staff not only requires time but also diverts administrators and developers from their regular duties,” Korolis warns. “Developing training plans and preparing for certifications demands significant effort, regardless of the solution deployed.”
Furthermore, the industry faces a talent shortage in AI expertise. Bridging this skills gap necessitates both reskilling existing employees and attracting new talent. Certifications, such as the Azure AI Engineer designation, provide a strong foundation for those seeking to enhance their qualifications.
Balancing Cost Optimization with Growth Initiatives
Organizations eager to embrace AI must often juggle multiple initiatives, including ongoing cloud migrations. “To stay competitive, it’s vital to accommodate both,” Korolis advises.
“The most effective strategy is to divide and conquer. Assign teams to continue migrating on-premises workloads while designating other teams to explore new projects. This approach accelerates value creation.”
While “more value, faster” is a common aspiration, Korolis cautions against rushing the foundational work essential for success. “Customers must invest time in the planning phase. Skipping this step often leads to project derailment,” he cautions. “Successful organizations spend months meticulously crafting their cloud strategy and aligning stakeholders before engaging implementation partners.”
This focus on planning is one reason Azure offerings, such as Azure Migrate and Modernize, differentiate between planning and deployment phases. Azure Migrate and Modernize efficiently transition existing workloads to Azure at scale, enabling teams to assess their on-premises environment and establish optimal migration strategies and architectures upfront.
Azure Migrate and Modernize & Azure Innovate offer multiple benefits, including assessments, pilot projects, and expert deployment assistance. Customers gain access to expert guidance, partner funding, Azure credits, migration tools, and technical training, allowing them to streamline their projects using proven strategies.
“From our perspective, the key is identifying providers that offer comprehensive support to facilitate your cloud journey,” Korolis emphasizes. “Different providers vary in their commitment to customer success, and Microsoft prioritizes helping customers achieve their goals.”
Discover how Microsoft Azure empowers organizations of all sizes to unlock the full potential of cloud and AI-led transformation through Azure Migrate and Modernize & Azure Innovate.
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