Many companies today not only have an IT strategy, but also a dedicated cloud strategy such as "Cloud first."
The main question that arises is: Will all processes migrate to the cloud in the future? ("Cloud" in this context meaning the multi-tenant public cloud, not individually hosted software in the private cloud.)
To address this question, let's take a look at the benefits of public cloud applications:
The advantages listed above that speak in favor of lean and efficient microservice architecture and, in particular, for replacing monolithic integrated solutions with hybrid scenarios. So it makes sense to use core systems for individual requirements (e.g. in the area of production or industry-specific solutions) on-premises, with extensions for flexible services from the cloud. Such systems can combine the best of both worlds. Of course, standardized interfaces are particularly important here.
For example, SAP AG recommends a two-tier ERP strategy: Classic on-premises ERP with full functionality for corporate headquarters and cloud ERP for smaller branches and subsidiaries. This reduces IT costs in all locations through simplified, standardized processes; costly, expensive roll-out scenarios can be eliminated. Furthermore, in the cloud, the advantages of modern technologies—machine learning, AI, and RPA, for instance—can be combined with highly specialized systems for specific industries.
Conclusion: For many services and functions, it makes sense for companies to make use of offerings from the public cloud. These services are indispensable for keeping abreast of new technologies and trends. Simplicity and scalability should be put at the forefront.
Complex, individualized processes, however, will continue to retain their importance in companies in the future—not all business processes can be mapped without greater individualization. This is just the situation where hybrid scenarios are the best solution. Therefore, when going for the strategy "Cloud first," you might want to make sure it's not "Cloud only"!