As cloud adoption accelerates, 87% of organizations now leverage multiple cloud providers, averaging three in their multicloud strategies, while 73% of enterprises are refactoring applications during migration, highlighting a decisive shift toward cloud-native modernization. These insights from HCLTech’s research report Cloud Evolution: Mandate to Modernize highlight the increasing complexity and strategic significance of cloud environments in modern enterprises.

In an exclusive interview with HCLTech’s Trends and Insights, Andrew Moody, Director of Global Technology Infrastructure & Delivery at HCLTech, a seasoned technology leader, sheds light on the evolving role of cloud computing while exploring key trends, challenges and strategic considerations shaping enterprise cloud adoption — including its impact on architecture, infrastructure management and cost efficiency.

With enterprises deepening their cloud adoption, balancing high-performance architecture with cost efficiency remains a critical challenge. The ability to optimize cloud spending requires not just robust governance but also financial visibility at both individual and organizational levels. According to Moody, cost control in cloud environments hinges on a dual approach — empowering teams with financial insights while leveraging centralized governance for scale.

Andrew Moody, Director of Global Technology Infrastructure & Delivery at HCLTech

Cloud as one of many tools in enterprise IT strategy

"There needs to be clear visibility for project teams on what it costs to run their solutions in the cloud. Individual teams must understand the financial impact of their decisions, while a centralized governance team ensures the organization takes advantage of economies of scale," he emphasized.

Unilever’s cloud transformation, one of the largest in the consumer goods industry, saw HCLTech help the company become a cloud-only enterprise in just 18 months. By streamlining operations across multiple providers and implementing a unified cost governance framework, Unilever gained detailed spending insights and secured enterprise-wide discounts, reducing infrastructure costs by 30% while boosting performance and agility.

For enterprises looking to optimize cloud expenditure, a structured approach is essential. Ensuring cloud spending is transparent at the team level fosters accountability, while a centralized governance function drives cost efficiencies through bulk negotiations and proactive resource management. By identifying and eliminating underutilized resources, organizations can rein in unnecessary costs without compromising on performance.

This balance between financial oversight and operational agility ensures that cloud remains a powerful enabler rather than a runaway expense, helping enterprises drive innovation while maintaining fiscal discipline. "When cloud computing first came to light in the industry, most large organizations, especially financial services organizations, had nothing to do with it. They feared it. But as they saw others leveraging it, they started small pilots and soon recognized the tremendous advantages," said Moody.

This shift led enterprises to establish centralized governance teams to oversee security controls, financial management and risk assessment in cloud environments. While many organizations initially moved toward a "cloud-first" or "cloud-only" stance, they soon realized that not every workload is suitable for cloud hosting.

For large enterprises, the future of cloud computing is about selecting the right mix of technologies for different workloads. While small and medium-sized businesses may benefit from an all-cloud approach, enterprises must assess their infrastructure holistically to determine which applications should remain on-premises and which should transition to the cloud.

Critical considerations for data center migrations

AWS has become a preferred platform for enterprises looking to upgrade their data centers, but successful migration requires careful planning. Moody mentioned three key factors that influence the effectiveness of cloud migrations. 

First, organizations need a dedicated governance team that understands security, access controls and financial oversight to ensure a seamless transition. Second, cloud migration is not just a technical change — it requires significant investment in upskilling employees to effectively utilize cloud capabilities. Third, ensuring adherence to financial regulations and data security protocols is paramount, particularly in industries such as banking and healthcare.

"Organizations often underestimate the time and effort required to educate their workforce about AWS and cloud computing in general. Training and upskilling are crucial to making cloud adoption effective," he noted. By addressing these challenges proactively, enterprises can enhance efficiency while mitigating risks associated with cloud migration.

AI in cloud infrastructure management

Artificial Intelligence (AI) plays a transformative role in enterprise cloud and infrastructure management, enhancing operational efficiency, security and decision-making. From anomaly detection to predictive maintenance, AI-driven solutions can proactively identify risks and optimize resources. 

“AI is a lot better at detecting anomalies in a large, complex environment than people are. Over time, enterprises will increasingly leverage AI for proactive infrastructure management and business process automation,” he explained. AI-powered security tools can detect vulnerabilities in real time, while machine learning models predict system failures before they occur, reducing downtime. 

HCLTech collaboration with a financial services provider exemplifies GenAI’s impact on business process automation. The objective was to enhance their quality engineering processes and reduce the time and effort required for API and integration testing, which previously dominated the software development lifecycle. 

By leveraging GenAI on AWS, HCLTech achieved a 72% reduction in API testing efforts and a 56% decrease in integration testing efforts. The implementation also included an in-house Large Language Model (LLM) to amplify knowledge within the organization, improving overall productivity and time-to-market. This transformation significantly boosted the efficiency and stability of the client's CI/CD pipeline.

However, given the rapid pace of AI advancements, enterprises must remain agile, continuously evaluating emerging capabilities to enhance their cloud strategies. These insights, outlined in HCLTech’s Cloud Research report, highlight AI’s growing role in shaping the future of cloud infrastructure.

Mainframe and cloud: Striking the right balance

Despite the widespread shift to cloud computing, mainframes continue to play a crucial role in enterprise IT. Many legacy applications run on mainframes and migrating them to the cloud is often prohibitively expensive.

"The biggest challenge with mainframe migration is cost. Many applications running on mainframes are decades old, and understanding the embedded business logic requires significant effort. In many cases, the financial return on investment simply isn’t there," said Moody.

Instead of full migration, enterprises are adopting hybrid strategies that integrate cloud environments with mainframe systems. This approach allows businesses to modernize their IT infrastructure while maintaining the stability and reliability of mainframe operations.

Key challenges in mainframe-cloud integration:

• High migration costs: Rewriting legacy code for cloud compatibility can be prohibitively expensive
• Integration complexities: Connecting cloud applications with mainframe systems requires specialized expertise
• Security considerations: Ensuring compliance with security and regulatory standards is crucial

By strategically assessing which workloads should remain on mainframes and which should transition to the cloud, enterprises can maximize efficiency while minimizing disruption.

Mentoring the next generation of IT leaders

As cloud computing and enterprise architecture evolve, guiding emerging IT professionals is more critical than ever. Moody, a strong advocate for mentorship, highlights the importance of lifelong learning in the rapidly changing technology landscape.

"There are so many learning resources available today, but the challenge is filtering out the noise. As a mentor, my role is to guide individuals toward the most relevant and valuable resources so they can build their expertise efficiently," he shared.

Mentorship programs, online courses and hands-on projects are essential tools for developing the next generation of cloud and enterprise architects. By fostering a culture of continuous learning, enterprises can ensure they have the skilled workforce needed to drive future innovation.

Looking ahead, cloud computing will remain a cornerstone of enterprise IT, but its role will continue to evolve. Organizations must take a strategic approach, balancing cost, performance, security and compliance to maximize the benefits of cloud adoption. AI-driven automation, hybrid mainframe-cloud strategies and workforce upskilling will be key factors in shaping the future of enterprise infrastructure.