Can an “agile business model” ever work?

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Agile: for some it’s a great way to experiment with new ideas quickly, for others it means messy, unstructured projects.

Whatever your views on agile, it’s at its best when developers are free to experiment and trial new innovations rapidly.

Cloud-native technology can help developers work faster and make the most of agile practices. This agile development doesn’t just help businesses make new apps faster. It allows organizations to respond much more quickly to changing market conditions and customer needs. And as discussed in my previous post, faster, more agile processes can even help organizations create new business models, and do things completely differently.

Agile development = agile business?

Agile development practices can help create a more agile, responsive business.

But in a world where so many applications and tools are still designed on-premises first, can CIOs really make the shift to true agile cloud development—and a faster, more agile business model?

Matt Stine, Principal Architect at Pivotal, argues IT leaders can make this shift. But they can only do so by embracing cloud-native solutions – tools designed from the ground up for cloud and deployed via Platform-as-a-Service solutions.

The shift to Cloud Native

Matt foresees how cloud-native solutions will lead to a big shift in the strategic thinking of IT and business leaders: “We’re going to enable new business models. We’re going to create new ways of interacting with computing that are going to disrupt transitional ways of doing the same thing.”

The challenge of change

Though Matt is confident a cloud-native strategy can enable new agile business models, he also highlights a key issue: change and disruption of this scale bring huge challenges.

“We’re going to find areas where we don’t have the proper social maturity or we don’t have the legal framework within which to actually execute these business models. So, we’re going to have to learn that yet again. I think with any major shift like this that changes the way we do business, you’re going to run into that same kind of experience. But that said, let’s not hold it back. Let’s see what happens and learn from it.”

These challenges of change are sure to be felt by businesses making the shift from on-premises to cloud in search of faster processes and methods of working.

The results from our research into cloud-native adoption support Matt’s perspective:

·         74% of respondents have adopted cloud native to improve business agility

·         62% said their top barrier to migrating to a cloud-native architecture was “difficulty integrating with on-premises systems”

·         53% said “poorly thought out transition strategies” was their key challenge

Can CIOs free themselves from legacy shackles?

The numbers show that the shift to cloud native presents a significant cultural and technical challenge to IT organizations.

The rewards are most certainly worth struggling through a complex migration though. Organizations that adopted cloud-native found that the new approach:

·         Improved agility

·         Increased workforce mobility

·         Reduced time-to-market

·         Enabled business model innovations

And that’s just the beginning. To achieve these benefits, and really make agile work, enterprises need to push through the challenges of change and develop a strategy that involves building solutions in the cloud, designed for cloud – from the ground up.

To learn more about cloud native, and how it’s helping IT leaders increase business velocity and facilitate new ways of working, download Cloud native comes of age.

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