"It is not enough to invest financial resources in a new cloud-based infrastructure."
As a specialist in cloud data analytics, Arjan van Staveren, Country Manager Germany at Snowflake, is familiar with the thoughts that companies in all sectors have when considering a possible move to the cloud. He therefore sees the cloud as a huge opportunity and the right step towards digitalization.
Arjan, what conditions need to be in place for companies to benefit from moving to the cloud?
Data is the greatest asset that companies have at their disposal today. And the good news is that while one crisis seems to follow the next, forecasts predict that the amount of data generated worldwide, and therefore the theoretical capital of companies, will double approximately every three years. At present, however, antiquated processes and systems still often prevent them from realizing the full potential of the data they collect. To change this, it is not enough to invest financial resources in a new, cloud-based infrastructure.
It needs to be started earlier.
That's right. For this investment to pay off in the long term, it requires a comprehensive process that starts in the minds of employees. Only when they are aware of the hidden benefits of the data they handle on a daily basis can they contribute to achieving real added value - and at the same time avoid creating new silos. Ultimately, everyone has to pull together to ensure that information not only becomes accessible, but remains so. And this requires not only a technological but also a corresponding cultural foundation, which should be laid from the outset through clear guidelines and training.
The use of cloud analytics is by no means a matter of course in all companies. Why is this the case?
According to surveys, the majority of German companies agree that the future lies in the cloud. However, the number of companies that are already making full use of the opportunities offered by the cloud is still quite small. The problem is that many IT decision-makers still have major security concerns when data is no longer stored on the company's internal servers as before, but on externally maintained servers. However, this is precisely where the decisive advantage lies, and it is still often overlooked. Many IT departments are simply unable to adequately protect the sensitive infrastructure.
So first and foremost there is a lack of human resources.
Companies not only lack specialists who are familiar with this area. New potential threats are also constantly emerging. Staying up to date here requires a lot of time and appropriate training. If a cloud-based solution is used instead, the responsibility lies in the hands of external providers. Compared to internal IT teams, they have sufficient resources to ensure data security at all times. This means that what is often seen as the cloud's greatest weakness is actually one of its greatest strengths.
In your experience, are there certain industries or companies that are lagging behind in terms of digitalization?
There are certainly some industries that are generally more skeptical when it comes to implementing new technologies. These include, for example, banks, public authorities and the healthcare sector. The reason for this is obvious, as they handle extremely sensitive data compared to other industries, which is why they are logically forced to meet even higher security standards. Many traditional companies find it equally difficult to take the step of digital transformation. While companies such as Meta or Google have already been born into the digital age and many start-ups are also making use of the numerous advantages of modern technologies, companies that have been around for many decades are finding it much more difficult. Breaking free from the shackles of their previous systems is a huge feat - but it is one that will pay off in the long term.
A good example of this is the Swedish group SKF.
The industrial group SKF was founded in 1907, over a hundred years ago. If SKF had not decided to lay a modern foundation for the scalable and automatic analysis of data with the help of Snowflake's Data Cloud, there would have been a high risk of losing touch with the competition in the near future. However, SKF recognized this danger in good time. Thanks to the final, cloud-based sales controlling, around 150 employees can now manage analyses and reporting centrally and fully automatically.
What makes the Snowflake Cloud Data Warehouse stand out?
In most cases, a cloud solution is not enough to meet all of a company's needs. On the one hand, the data cloud is needed to collect and process data and make it available for use; on the other hand, one or even several applications are required to analyze the available data and generate practical added value. Snowflake's Data Cloud is therefore not just a normal cloud. It works like a comprehensive interface. This gives companies the opportunity to build a bridge between their data and applications, allowing them to benefit flexibly from the advantages of the individual solution providers. In other words, Snowflake makes the theoretical potential of the cloud practically usable in a simple and scalable way.
Honestly, are there no disadvantages at all when companies move from on-premise solutions to the cloud?
The cloud can even have a whole range of disadvantages. However, these mainly arise when it is not used correctly. It is not uncommon for companies to fail to migrate, which means that they simply move their historically grown data silos to the cloud. However, this guarantees neither better accessibility nor higher data quality. In order to benefit from the advantages of the cloud, a holistic change must be implemented.
What advice would you give to companies that want to rely on cloud analytics but don't know where to start or which provider to choose?
The most important thing is to choose a solution that not only meets the company's needs today. It should be as scalable as possible so that it can also grow flexibly in the future. The market is changing faster and faster every year, and unexpected disruptions are making things even more difficult. For this reason, companies that think about tomorrow today will have the upper hand in the future and will not have to constantly look for new solutions in order to adapt to changing conditions.
Is Snowflake's Data Cloud also suitable for getting started in the cloud?
The good news is that Snowflake's Data Cloud can provide organizations with the flexibility and scalability they need today and in the future. Both in this ongoing process and when getting started, there is the option of using Snowflake's Professional Services. This is particularly worthwhile for companies that feel a certain amount of uncertainty, don't know where to start or are perhaps looking for inspiration on how they can benefit from the data cloud in their business model.
Sounds simple. Thank you very much, Arjan!
About Arjan van Staveren
Arjan van Staveren was the first German employee at data cloud company Snowflake in 2017. Today, he is responsible for the German market as Country Manager Germany. Prior to Snowflake, Arjan van Staveren held senior sales positions at Microsoft and Bazaarvoice.
