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In multi-cloud and hybrid cloud deployments, businesses often prioritize technical feasibility or cost. However, evolving market demands require adapting processes, products, and services to stay competitive.
During the process of business transformation, companies often encounter the following three major challenges:- Applications transformed to meet business needs often have redundant functions that are repeatedly developed and maintained, leading to resource wastage.
- To break down siloed systems (Information Silo Architecture), it is necessary to integrate and coordinate functions within the system, resulting in high costs.
- Redesigning systems to meet business needs hinders the accumulation and development of business process experience.
To address this, businesses can categorize applications based on their functions and characteristics or the frequency of changes, and then develop the most suitable technical architecture, governance model, and investment strategy for each category of applications. This approach helps achieve more effective multi-cloud application deployment.
In addition to developing their own application classification system, some large multinational companies also refer to validated application classification and management methodologies. They may adapt these methodologies to create their own classification system and then decide on the appropriate cloud platform for deploying the applications based on this classification.
In addition to developing their own application classification system, some large multinational companies also refer to validated application classification and management methodologies. They may adapt these methodologies to create their own classification system and then decide on the appropriate cloud platform for deploying the applications based on this classification.
Gartner's PACE-Layered Application Strategy
- Gartner's PACE-Layered Application Strategy is a validated application classification and management methodology that divides applications into three layers based on their functions and characteristics or frequency of change:1. Systems of Record (SOR): These are core functions within the enterprise and represent industry-standard systems that do not undergo frequent changes, such as ERP systems or financial systems.
- Systems of Differentiation (SOD): These systems support unique business processes, such as service and product development, with a change cycle of 1 to 3 years. They are typically configured to simplify processes or integrate new technologies, such as web systems or data management platforms developed specifically for the business.
- Systems of Innovation (SOI): These systems are designed to address new business needs and are focused on deploying new services or developing test environments. They experience a high frequency of change, with cycles ranging from 0 to 12 months, such as systems for innovative technology applications or test environment development.
Figure 1: PACE with Application Types (Source：Data Chatter Box. February 18, 2015)
How to Deploy Applications on the Appropriate Cloud Platform
Taking ”Systems of Record“ applications as an example, core internal systems such as human resources and finance should consider the security features of the three major public clouds when selecting a cloud platform for deployment. Additionally, if the enterprise's operating systems are primarily Microsoft Windows Server, deploying core systems on “Microsoft Azure” can provide better integration support services, lower management complexity, and reduce learning costs.
For “Systems of Innovation” applications, the use of Internet of Things (IoT) technology in product and operational innovation provides novel automation solutions for manufacturing processes. Given that IoT enables real-time visibility into the entire supply chain, a cloud environment offering low-latency network connections becomes a crucial component. Among the three major public clouds, as of July 2023, only “Google Cloud Platform” has established a data center in Taiwan. Therefore, if the relevant applications rely on IoT technology or require real-time data exchange, it is recommended to deploy the system on “Google Cloud Platform”.
For “Systems of Innovation” applications, the use of Internet of Things (IoT) technology in product and operational innovation provides novel automation solutions for manufacturing processes. Given that IoT enables real-time visibility into the entire supply chain, a cloud environment offering low-latency network connections becomes a crucial component. Among the three major public clouds, as of July 2023, only “Google Cloud Platform” has established a data center in Taiwan. Therefore, if the relevant applications rely on IoT technology or require real-time data exchange, it is recommended to deploy the system on “Google Cloud Platform”.
Electrum Cloud Offers Professional Strategic Consulting Services to Optimize Multi-Cloud Deployment
As market business demands continue to evolve, companies often face resource wastage and high costs in response to these changing needs. One of the key challenges for businesses adopting multi-cloud applications and management is determining the most suitable technical architecture, governance model, and investment strategy for their applications while optimizing deployment.
Electrum Cloud has extensive experience in cloud strategy consulting and architecture, helping businesses develop a comprehensive application classification system and optimize multi-cloud deployment.
