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As European companies struggle to realise the full value of their cloud investments, we as technology leaders need to recognise that successful digital transformation rests on three fundamental pillars: people, processes, and tools.
While the industry emphasises ‘people-first’ approaches for emerging technologies such as AI, we must apply this same principle to cloud migration, while ensuring teams are equipped with the right tools to maximise their potential.
Recent research from Deloitte reveals that while 74% of UK leaders see digital transformation as crucial, organisations are struggling to realise its full value, and despite 95% of European companies reporting that they capture some value from cloud computing, most of its benefits remain isolated and subscale. In fact, 82% of organisations acknowledge their cloud impact is either limited or only partially realised.
The human element plays a vital role here, given the biggest barrier to migration is people who often have a lot of emotional investment in their current tools. The focus has been disproportionately on technical implementations rather than the integration of people, processes, and tools. Only one-third of European companies monitor non-IT outcomes from their cloud investments, missing crucial insights into how technology empowers their workforce.
The Human Cost of Technology-First Approaches
The consequences of overlooking the human element are significant. According to McKinsey’s research, European companies are five times more likely than their US counterparts to pursue an IT-led cloud migration, focusing primarily on ‘lifting and shifting’ existing workloads rather than transforming how people work.
This approach might explain why many organisations are seeing limited returns on their investment. Migration creates a good opportunity to review methods and processes while ensuring teams have the tools they need to work efficiently. both human impact and technological enablement, even the most technically sound migration can fail to deliver the desired results.
Building a People-First Migration Strategy
To bridge the gap between technology investment and value realisation, organisations need to:
- Invest in Workforce Development
The foundation of successful cloud transformation lies in strategic workforce development. Research shows that leading organisations maintain a careful balance of 60% technical and 40% operational roles when building their digital teams, typically adding 25 new digital roles per 1,000 workers. This isn’t just about hiring new talent – it’s about creating a comprehensive approach to skill development that includes technical training, soft skills development, and clear career progression paths.
Organisations need to identify skill gaps early, implement mentorship programs, and build strong relationships with educational partners to ensure a continuous pipeline of talent that can drive and sustain the transformation.
- Create Inclusive Transformation Strategies
Successful cloud migration requires genuine organisational buy-in that goes far beyond technical implementation. Organisations must actively engage stakeholders at all levels, understanding current workflows and pain points while identifying informal leaders who can champion change.
Regular communication about migration progress combined with clear feedback channels helps to address resistance proactively. The key is to acknowledge that employees are likely to have some kind of investment in existing tools and processes. By providing clear timelines, support structures, and opportunities for staff to influence the transformation process, organisations can turn potential resistance into active engagement.
- Measure Success Beyond Technical Metrics
The true value of cloud transformation extends far beyond technical metrics and cost savings. Organisations need to track employee satisfaction and engagement levels alongside traditional technical key performance indicators (KPIs). This includes monitoring adoption rates of new tools, time saved through improved processes, and skill development achievements. Business impact measures should encompass customer satisfaction, process efficiency improvements, and innovation metrics.
Long-term value indicators such as employee retention rates, internal mobility, and team productivity provide a more complete picture of transformation success. This comprehensive approach to measurement ensures organisations capture both immediate benefits and long-term value from their cloud investments.
- Build Strong Partnerships
Effective cloud transformation requires partnerships that go beyond traditional vendor relationships. Organisations should select partners based on cultural fit, change management expertise, and their ability to transfer knowledge effectively. These partnerships need clear governance structures and shared KPIs that include people development alongside technical objectives. Success stories like HP’s 70% productivity increase and Siemens’ 50% efficiency improvement demonstrate how strong partnerships can accelerate transformation while building lasting organisational capabilities.
Looking Ahead
The potential value of getting cloud migration right is significant – up to $3 trillion for Global 2000 companies that successfully move beyond basic cloud adoption. However, capturing this value requires a fundamental shift in approach. As organisations continue their cloud journeys, the message is clear: success depends on the integration of people, processes and tools. Cloud migration isn’t just about moving workloads, it’s about creating an environment where all three elements work together to drive meaningful transformation.
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