UK SMEs face cloud migration challenges, warns Six Degrees

Six Degrees has published the UK SME Cloud Intelligence Report 2024, derived from research carried out by Censuswide involving 801 IT decision-makers from mid-market organisations. The report highlights significant challenges faced during public cloud migration projects.

According to the findings, 40% of UK mid-market IT decision-makers felt rushed while conducting such migrations. Notably, the percentage increases among specific roles such as IT Directors (41%), Cloud Architects (43%), CIOs (45%), Heads of IT (47%), and Heads of Infrastructure (80%). Vince DeLuca, Chief Executive Officer at Six Degrees, commented on the results: "If an organisation's case for public cloud migration is based primarily on savings benefits, then those in charge are in for a shock. The application modernisation necessary to realise savings from public cloud migration projects is usually much harder to achieve and takes far longer than originally anticipated."

The report reveals that although many organisations adopt cloud services in hopes of cutting costs, unexpected expenses are a common theme. Eight out of ten UK SMEs have faced unexpected costs or budget overruns associated with cloud usage. DeLuca noted, "As a result, there's likely to be pressure to move this phase along as quickly as possible, often causing problems and incurring more costs in the long term. This explains why so many IT decision-makers told us they felt rushed."

Despite the rankings, 25% of IT decision-makers stated cost reduction as their primary reason for migrating to the cloud. Other financial motivations cited include flexibility (32%), reduced capital investment (28%), and decreased reliance on on-premises infrastructure (24%). This points to a significant focus on cost management as a driver behind cloud adoption.

The findings stress the impactful role of a comprehensive cloud adoption strategy from the outset, emphasising continuous cloud management, governance, and FinOps integration. The data suggests the importance of partnering with a Managed Service Provider (MSP) to gain trusted advice and expertise at each stage of the cloud migration process.

Despite the challenges highlighted, the report also finds positive motivations behind cloud adoption. Some respondents transitioned to the public cloud to leverage innovative technology and new applications that demand a hosted environment. These decisions are associated with improved business efficiency, customer experience, and staff productivity. Moreover, respondents are starting to measure success based on parameters like increased productivity, security, user experience, automation, and reduced application downtime rather than immediate cost savings.

DeLuca concluded, "Our findings underscore why it's unrealistic to expect immediate cost savings from public cloud adoption—and the unnecessary stress this can create for those involved. However, when orchestrated appropriately with considered outcomes, cloud transformation projects will deliver tangible benefits, reduce technical debt, manage risk, and deliver greater efficiency—all of which will also play a key role in driving down business costs. The message is clear: set realistic goals and outcomes from the outset and play the long game to maximise public cloud adoption benefits."

For detailed findings, interested parties can refer to the UK SME Cloud Intelligence Report 2024 by Six Degrees.