In order to reap the benefits of utilizing cloud services in the present, most companies need to strategize and overhaul their programs with an eye to the future, while keeping security at top of mind.
Migrating to cloud programs has innumerable benefits for companies, but comes with challenges. Most companies are over budget on their cloud spending because of hidden costs and add-ons, talent gaps, and implementation inefficiencies, but plan to spend more. Cloud services are increasingly critical to remaining competitive in swiftly changing and highly competitive markets. Meanwhile, security and compliance are always a concern. 
Rather than increasing budgets for cloud initiatives however, it is possible to make the cloud profitable in the short term. In order for industrial companies to “bend the curve,” decision makers need to reassess and reset their cloud programs with a well thought out, long term strategy in mind. They need to think in terms of a complete business transformation. Cloud programs can fundamentally improve processes for R&D, procurement, supply chain, manufacturing, marketing and sales, aftermarket, and business support. Increased productivity and margins can be created through automation and seamless data integration across platforms.
Good cloud strategy also requires leaders to understand the current and future state of their IT operations, so that they can match cloud initiatives to their vision and implement new systems in proper sequence. By planning a thorough transformation now, spending can be rebalanced and cloud operations can turn profits faster.
In our own operations, we have migrated from a server-based ERP software to a cloud-based ERP software. If you are considering a similar transition in your own business, feel free to reach out. We’d be happy to share our learnings from this experience, including the things that went well and the things that did not go well.
 Making the cloud pay: How industrial companies can accelerate impact from the cloud, McKinsey & Company