Title

AWS re:Invent 2023 - Ericsson and HCLTech: Powering cloud transformation at speed and scale (COP216)

Summary

• HCLTech assisted Ericsson in a significant cloud adoption journey over two years, aiming for 80-90% cloud migration.
• The main driver for Ericsson's cloud journey was to support business innovation, digitalization, and cloud-native solutions delivery.
• A business case was made focusing on speed and delivery of innovation rather than cost savings, with HCLTech betting on the efficiency gains post-migration.
• Ericsson's approach involved a cultural shift, changing ways of working, adopting a product operating model, and implementing DevSecOps.
• The migration strategy included a "factory approach" and involved stakeholder engagement, which, despite causing turbulence, ultimately led to successful buy-in.
• Ericsson faced challenges with complex SAP environments and homegrown applications but managed to migrate over 90% of workloads, with some legacy applications being decommissioned.
• The cloud migration has enabled Ericsson to quickly adopt new technologies like generative AI and has been a catalyst for cultural change within the IT organization.
• The partnership between Ericsson, HCLTech, and AWS was crucial, with a unified team approach and shared goals.

Insights

• Strategic Partnership: The success of Ericsson's cloud transformation was heavily reliant on the strategic partnership with HCLTech and AWS, emphasizing the importance of selecting partners willing to invest in the success of the migration.
• Business-Driven Approach: Ericsson's decision to prioritize business value and innovation speed over cost savings in their cloud journey highlights a trend where businesses are looking at cloud adoption as a means to gain a competitive edge rather than just a cost-cutting measure.
• Cultural Transformation: The cloud migration was not just a technological shift but also a cultural one, requiring changes in team structures, adoption of new operating models, and a move towards agile methodologies.
• Stakeholder Engagement: The extensive engagement with stakeholders, while time-consuming, was critical for ensuring alignment and support throughout the organization, which is a key factor in the success of large-scale IT transformations.
• Complexity Management: Ericsson's handling of complex SAP migrations and the move of heavily customized applications demonstrate the need for meticulous planning and the ability to adapt plans as needed during a cloud migration.
• Continuous Improvement: Post-migration, Ericsson continues to focus on automation, modernization, and optimization, indicating that cloud migration is an ongoing journey rather than a one-time project.
• Enabling Innovation: The cloud infrastructure has enabled Ericsson to quickly adopt emerging technologies like generative AI, showcasing the cloud's role as an enabler for rapid innovation and R&D.
• Cultural Shift: The migration has sparked a broader cultural shift within Ericsson's IT organization, with teams eager to adopt new ways of working, further emphasizing the transformative impact of cloud adoption beyond technology.