Coca Cola's Successful Cloud Migration: Strategies & Benefits

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COCA COLA’S CLOUD MIGRATION 1 Coca Cola’s Cloud Migration Student Name Wilmington University June 22, 2023

COCA COLA’S CLOUD MIGRATION 2 Recommendation for a Cloud-based Solution Introduction Cloud migration is increasingly becoming globally adopted. One of the reasons that has seen companies migrating to cloud computing is to increase productivity and the need for leaning on cloud services which are beneficial (Ewoldt, 2022). One of the companies that has migrated to cloud computing is Coca Cola. Today, Coca Cola is fully leveraging cloud computing. Being the leading beverage producing company, Coca Cola runs hundreds of marketing promotions annually. Before the company migrated to cloud computing, its computing environment was on premises and the increase in its marketing traffic forced the company to do a migration with the aim of enhancing customer experience and reducing delays (Singh, 2020). In 2014, Coca Cola migrated its on-premises computing environment to a cloud computing environment. In doing so successfully, the company used Amazon Web Services (AWS) which is now the cloud computing service provider which the company is aligned to. From the information provided, Coca Cola has fully migrated to cloud computing and, therefore, the company is fully cloud-based and not just a few IT systems like customer relationship management or enterprise resource planning (Schwartz, 2018). From the information the company shares and which is readily available in the Internet, Coca Cola is fully using cloud computing services. As Coca Cola has migrated to cloud computing, it means that it is a better choice than the on-premises computing (Schwartz, 2018). With Coca Cola migrating its entire information technology (IT) infrastructure to cloud computing, they have achieved digital transformation of their IT systems. The benefit with this is that, the company can now serve millions of its retail customers or even hundreds of millions of consumers as opposed to the company having previous 10,000 sales representatives.

COCA COLA’S CLOUD MIGRATION 3 Additionally, the company has increased productivity by migrating to cloud computing (Schwartz, 2018). Operational Efficiencies When an organization adopts cloud technology, it benefits financially and non- financially. The financial benefits of cloud technology are known such as saving IT costs. Similar to financial benefits of cloud computing, there are also non-financial benefits, one of which is insights. With cloud technology, an organization has integrated cloud analytics for a better view of the data it is generating (Alzakholi, 2020, p.43). Additionally, cloud technology makes collaboration among employees in an organization a simple process especially for organizations with several teams. Cloud technology also enable quality control. In relation to this advantage, when an organization has a cloud technology in place, all documents are centrally stored. When everyone in the organization accesses the same information, it is easy for an organization to maintain data consistency and avoid human error (Alzakholi, 2020, p.45). Migration Strategy The last ten years has seen the number of cloud computing technology users – individuals and organizations – increasing massively. Traditionally, enterprise networks were being managed by information technology (IT) departments within organizations. However, these enterprise networks are now being managed through third-parties in the form of cloud computing (Marotta et al., 2015, p. 535). As cloud computing has proved to be advantageous, it explains why more and more organizations are increasingly adopting the initiative. For successful adoption, there are specific stakeholders and sponsors that should be involved. These stakeholders are cloud provider, cloud consumer, cloud carrier, cloud auditor, and cloud broker. Although they are

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COCA COLA’S CLOUD MIGRATION 4 different, each play a critical role in the success of cloud-based solution initiatives (Marotta et al., 2015, p. 535). After deciding to migrate from the on-premises infrastructure to cloud computing, the next step for the Coca Cola Company was selecting a cloud service provider. The company selected Amazon Web Services (AWS). Some of the most important things for which the company considered AWS are the reliability and capability of AWS as a cloud service provider as it was being entrusted with the applications and data of the company. Other reasons for considering AWS are the availability of risk management, organization, planning, and governance for which the provider is known. Additionally, the Coca Cola Company also considered the reputation of AWS and the business knowledge and technical know-how. AWS was also chosen because it was able to validate compliance with the requirements of the Coca Cola Company (Stergiou et al., 2018, p. 966). One of the determining factors when selecting a cloud service provider is service level agreement (SLA). SLA refers to the agreement between a cloud service provider and a customer. With SLA, it helps in ensuring the maintenance of a specific level of service (Marotta et al., 2015, p. 540). Generally, there are three types of SLAs – customer-based SLA, service-based SLA, and multilevel SLA. The customer-based SLA is the type of SLA that includes the information of the cloud services that are to be provided to the client. Service-based SLA is the type where all customers are provided similar type of cloud service which is also limited to the no changes to the standards. The multilevel SLA is the type of agreement customized to meet specific needs of a customer (Marotta et al., 2015, p. 540). A cloud migration tool refers to a technology that enable organizations to migrate their data, infrastructure, and applications from in-house to the cloud. There are many cloud migration

COCA COLA’S CLOUD MIGRATION 5 tools some of which are ShareGate, Prodly DevOps, Skyvia, AWS Migration Hub, and Faddom. Several companies are making use of these cloud migration tools (BasuMallick, 2022). Some of the companies using ShareGate are Investopedia, LLC and SouthWest Airlines Company. Users of Prodly DevOps are American Express, Expedia, Johnson & Johnson, and Snowflake. For Skyvia, it is used by companies such as General Electric, Dale Carnegie Training, and Medecins Sans Frontieres. AWS Migration Hub is used by Caylent, Wipro, Deloitte, and Thoughtworks. Finally, Faddom is used by NodeWeaver, Impact Driven, and DentalTek (BasuMallick, 2022). Although Coca Cola has already migrated to the cloud, it is recommended that the company use AWS Migration Hub as the cloud migration tool. With the company using AWS Migration Hub, it will have a single location for tracking the progress of their data and application migration across multiple AWS and partner solutions. Additionally, AWS Migration Hub helps organizations to reduce their infrastructure expenditures, renewal costs, and other expenses that may come as a result of migration (BasuMallick, 2022). Security, Governance, and Risk Analysis Although the benefits of cloud-based solutions are known, there are also security vulnerabilities and threats associated with them, and which the Coca Cola Company will have to be aware of when it migrates to the cloud. • Cloud misconfigurations • Insecure APIs • Lack of visibility • Lack of multi-factor authentication • Malicious insiders

COCA COLA’S CLOUD MIGRATION 6 • Distributed denial-of-service attacks The increase in cloud security threats and vulnerabilities means that the Coca Cola Company must be creative in how they protect against their cloud-based solutions and environment. An effective way the Coca Cola Company can achieve high security in their cloud- based solutions is by using data analytics. The company can use data analytics in threat detection and response, reducing false alarms, and performing cybersecurity analysis As the Coca Cola Company now knows the existence of cloud security threats and vulnerabilities and the damage they can cause, the company should be ready to adopt strategies for mitigating the risk. There are various ways through which the cloud risk can be mitigated, including the following: • Cloud infrastructure risk assessment • Monitor third parties service providers • Train and educate employees on security • Create a robust security system • Prepare for incidents and breaches A Cloud Center of Excellence (CCoE) refers to a centralized cloud governance function for an organization. Basically, a CCoE is an organization architecture function. Some of the typical IT personnel included in this committee are CIO, IT managers, and executive-level IT leaders (Hashem et al., 2015, p. 102). Having migrated to cloud computing environment, the Coca Cola Company will benefit significantly from a CCoE committee. The major way in which the company will benefit is by having in place a way to of driving cloud-enabled IT transformation. Additionally, with the committee in place, the company will have an architecture

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COCA COLA’S CLOUD MIGRATION 7 in place for setting cloud policy and guiding the selection of cloud service provider (Hashem et al., 2015, p. 105). Cost Analysis After the adoption of cloud computing which involves an organization incurring costs of migration from the on-premises environment, an organization must continue incurring administrative costs. One of the administrative costs is the compute costs. In relation to the compute costs, an organization pays based on the number and types of instances used during a specific period (Rashid & Chaturvedi, 2019, p. 425). Another administrative costs is the storage costs. Storage is provided as a service and organizations must pay monthly the amount of storage they may have utilized on a monthly basis. Additionally, organizations may have to pay for an entire storage volume especially for managed storage services. Another administrative cost is associated with networking. Organizations are billed based on the data transmitted into their cloud service and out of the cloud service (Rashid & Chaturvedi, 2019, p. 426). Cloud migration for the Coca Cola Company will also come with both start-up and ongoing costs especially in relation to the technical aspects of cloud computing. Examples of start-up costs are cost of purchasing cloud equipment like data center. Additionally, there are costs for repurposing the existing IT infrastructure and costs of carrying out repairs beyond routine maintenance. On the other hand, ongoing costs are software support costs, cloud subscription costs for software and storage spaces (Vidhyalakshmi & Kumar, 2016, p. 394). Although organizations have successfully migrated to cloud computing infrastructure, their increasing bills as a result are one of their major concerns especially because of the expanding business needs. This explains the needs for organizations to be aware of their cloud cost structure as well as the relevant metrics because this is one of the ways of ensuring their

COCA COLA’S CLOUD MIGRATION 8 cloud resources are being used in the best way and to their fullest potential. Additionally, this helps in minimizing cloud waste. This is what is known as cloud optimization and organizations can achieve it through cloud cost management tools (Surbiryala & Rong, 2019, p. 4). There is a variety of cloud cost management tools but the recommended one for the Coca Cola Company is the CloudAdmin. The major features for CloudAdmin which form the basis for its recommendation for the Coca Cola Company are filtered data feeds which help in extracting the key details about cloud spending, therefore, saving an organization time needed to wade through too much information (Raj et al., 2018, p. 232). Additionally, CloudAdmin has automated alerts which can help in stopping runaway cloud spending when it crosses specific thresholds. The simplest way of calculating ROI is first subtracting the cost of investment from the return and dividing the difference by the cost of investment. The resultant percentage or ratio is the ROI. However, finding ROI does not consider some elements that an organization may desire in cloud-based solutions like user satisfaction (Vidhyalakshmi & Kumar, 2016, p. 383). When calculating ROI for cloud-based solutions using this formula, it can be tricky. The most effective way of calculating ROI for cloud-based solutions is to consider all measurable factors. Additionally, an organization must establish a constant time frame. However, an organization may not be able to take everything into account and, therefore, calculating ROI may not be the best way for an organization to justify whether to invest in a cloud-based solution or not (Vidhyalakshmi & Kumar, 2016, p. 379). Conclusion Implementing the right information technology solutions can be beneficial to an organization in many ways, one of which is enabling an organization to be competitive.

COCA COLA’S CLOUD MIGRATION 9 However, an organization must have information on the existing solutions. The migration of the Coca Cola Company from the on-premises IT environment to a cloud environment was a journal. Whether the company was going to remain with on-premises solutions or migrate to cloud was a choice. Each of these two solutions has advantages and disadvantages and whether an organization will choose cloud-based solutions over on-premises solutions will depend on the information an organization will have on the two solutions, including financial and non-financial benefits and their descriptions which give an organization a better understanding of the solutions. Without the analysis of cloud cost management, the Coca Cola Company would not have achieved optimum benefit from cloud computing. Therefore, after the adoption of cloud, the company had to comprehensively examine cloud cost management. Cloud cost management involves multiple things including the type of software an organization is to adopt. The descriptions in this paper of the cloud cost analysis show the importance of an organization not only adopting cloud-based solutions, but also managing their costs.

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COCA COLA’S CLOUD MIGRATION 10 References Alzakholi, O., Shukur, H., Zebari, R., Abas, S., & Sadeeq, M. (2020). Comparison among cloud technologies and cloud performance. Journal of Applied Science and Technology Trends , 1 (2), 40-47. BasuMallick, C. (2022). Top 10 Cloud Migration Tools for 2021 . https://www.spiceworks.com/tech/cloud/articles/best-cloud-migration-tools/ Ewoldt, B. (2022). Cloud Migration: Why (and How) Companies Are Moving to the Cloud. https://www.ntiva.com/blog/cloud-migration-why-companies-are-moving-to-the-cloud Coca Cola (n.d). https://www.coca-colacompany.com/ Gonzalez, N. M., Goya, W. A., de Fatima Pereira, R., Langona, K., Silva, E. A., de Brito Carvalho, T. C. M., ... & Sefidcon, A. (2016, October). Fog computing: Data analytics and cloud distributed processing on the network edges. In 2016 35th International Conference of the Chilean Computer Science Society (SCCC) (pp. 1-9). IEEE. Hashem, I. A. T., Yaqoob, I., Anuar, N. B., Mokhtar, S., Gani, A., & Khan, S. U. (2015). The rise of “big data” on cloud computing: Review and open research issues. Information systems , 47 , 98-115. Marotta, M. A., Faganello, L. R., Schimuneck, M. A. K., Granville, L. Z., Rochol, J., & Both, C. B. (2015). Managing mobile cloud computing considering objective and subjective perspectives. Computer Networks , 93 , 531-542. https://doi.org/10.1016/j.comnet.2015.09.040 Raj, P., Raman, A., Raj, P., & Raman, A. (2018). Multi-cloud management: Technologies, tools, and techniques. Software-Defined Cloud Centers: Operational and Management Technologies and Tools , 219-240.

COCA COLA’S CLOUD MIGRATION 11 Rashid, A., & Chaturvedi, A. (2019). Cloud computing characteristics and services: a brief review. International Journal of Computer Sciences and Engineering , 7 (2), 421-426. DOI: https://doi.org/10.26438/ijcse/v7i2.421426 Schwartz, S. (2018). How Coca-Cola migrated from a single data warehouse to global application deployment . https://www.ciodive.com/news/how-coca-cola-migrated-from-a- single-data-warehouse-to-global-application-d/519070/#:~:text=Coca%2DCola %20adopted%20a%20cloud,deployment%20of%20applications%20and%20integrations . Singh, N. (2020). Coca-Cola’s Migration to AWS: A Serverless Case Study . https://neelaksh- singh.medium.com/coca-colas-migration-to-aws-a-serverless-case-study-dcada2da4a30 Stergiou, C., Psannis, K. E., Kim, B. G., & Gupta, B. (2018). Secure integration of IoT and cloud computing. Future Generation Computer Systems , 78 , 964-975. https://doi.org/10.1016/j.future.2016.11.031 Surbiryala, J., & Rong, C. (2019, August). Cloud computing: History and overview. In 2019 IEEE Cloud Summit (pp. 1-7). IEEE. Tari, Z., Yi, X., Premarathne, U. S., Bertok, P., & Khalil, I. (2015). Security and privacy in cloud computing: vision, trends, and challenges. IEEE Cloud Computing , 2 (2), 30-38 Vidhyalakshmi, R., & Kumar, V. (2016). Determinants of cloud computing adoption by SMEs. International Journal of Business Information Systems , 22 (3), 375-395. https://doi.org/10.1504/IJBIS.2016.076878

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