Cloud computing and digital transformation are defining the next generation of business success. Eighty-three-percent of enterprise workloads will live in the cloud come 2020, notes Forbes. Globally, sixty-three-percent of companies have a digital transformation strategy in place, according to ITProPortal; that number increases to nearly 80-percent when looking exclusively at organizations in the U.S.

But can anyone fathom how effective the cloud and digital transformation are together? We do know that companies that advance cloud deployments and digital transformation together in synchronization will gain a competitive advantage the likes of which few generations have lived to see.

By looking at the benefits and the cloud deployments that digital transformation demands, organizations can ensure that they enjoy all the advantages.

Interweaving hybrid cloud & digital transformation

Digital transformation enables organizations to innovate changes across business processes and technologies to meet evolving market demands. Dynamic, application-centric infrastructures allow dynamic workloads and strategic business shifts. Organizations are adopting hybrid cloud strategies in multi-cloud environments to support that dynamic infrastructure.

The hybrid cloud is a design approach that combines differing IT infrastructures, clouds and/or services to provide for a collective solution. These unique IT infrastructures and workloads support applications of IoT, analytics, AI, and mobile access to business services, which are critical components of digital transformation strategies.

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The cloud provides cost efficiencies and reduces in-house IT footprint and overall IT maintenance. As the cloud enables digital transformation, it also speeds go-to-market and increases market share. The cloud’s scalable, malleable IT resources are the foundation for digital transformation, allowing accelerated business evolution through nimble infrastructure that makes change affordable.

It’s no wonder then that sixty-five percent of organizations are citing digital transformation as a key driver for their move to the cloud, according to Karyn Price, senior industry analyst, Frost & Sullivan.

Digital transformation is as beneficial to the cloud as the cloud is to it. Organizations using the cloud see increased cost savings when they implement a digital transformation strategy, according to a Cloud Industry Forum report. Companies that achieve digital transformation see an average cost savings of 26-percent while those that don’t see a 9-percent savings, according to that same report.

Together, digital transformation and multi-cloud deployments provide competitive advantages, which are vital as business competition ramps up. According to data from an ITProPortal survey, 70-percent of businesses globally say competitive pressure is the primary driver behind digital transformation. And more than a third say failure to complete digital transformation projects will result in competitors having the business advantage over them. Digital transformation improves the customer experience, which is key to competitive advantage.

Competing in today’s increasingly digital economy depends on the organization’s ability to run workloads in the most appropriate cloud environments–whether the goal is to take advantage of cost savings or capitalize on performance optimization opportunities, according to CIO.

     Also read: Big Data, BI and AI Driving Cloud Adoption

Applying private cloud to digital transformation

Using the private cloud, organizations can adopt digital transformation strategies by tailoring multi-cloud environments that offer the benefits of a private data center and a public cloud (by connecting to the public cloud as needed).

Using on-premises and managed hosted private cloud environments, organizations can ensure security, application control, and regulatory compliance due to the private cloud’s similarities to a private data center. Enterprises can count on reliable networking from a managed services provider when they use the private cloud. They can ensure application performance because they have dedicated the infrastructure to the application at hand. Using private cloud hosting, organizations can limit costs, offload expert labor and resource requirements, and keep workloads in nearby data centers.

Digital transformation is a core competency at TierPoint. TierPoint enables multi-cloud environments combined with a broad portfolio of traditional hosted and managed services, like security and networking. Contact us today to learn more.

 Learn more while enjoying the “Accelerating Your Hybrid Strategy with Private Cloud” webinar from TierPoint.

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