The backbone of DX: Pitfalls of Cloud Utilization and Steering Success with CCoE

January 2024​ Chief Expert Yohei Takauchi
An important backbone in DX promotion is the use of cloud services. Effective utilization of various services provided in the form of XaaS and public clouds such as AWS/Microsoft Azure/Google Cloud requires different perspectives and skills from the conventional ones. What we would like to advocate is the establishment and utilization of a "CCoE," an organization dedicated to the utilization of cloud services.

Facing Unexpectedly Large Costs

Company A, a manufacturing company, launched a cloud lift project to accelerate its digital transformation (DX) by migrating its traditional on-premise business systems to a cloud environment.


On-premise systems involve costs and burdens associated with hardware purchases and maintenance. The company expected that migrating to the cloud would eliminate these expenses, leading to cost savings. However, rather than reducing costs, it became apparent that expenses had ballooned to 500% of the anticipated system costs.


What caused this situation?


Upon investigation, it was discovered that the issue lay in data storage. In the on-premise environment, data was consolidated in a large-scale NAS (Network Attached Storage) and backed up using dedicated software to magnetic tape storage. In the cloud environment, snapshots were taken at appropriate intervals and granularity. However, because these snapshots were left undeleted, the company was hit with unexpectedly high charges. (Figure 1)


Furthermore, ...

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