How to Move from On-Premises to Multi-Cloud with Multi-cloud strategy Without Losing Data Control

The Digital Transformation Dilemma

When Mohammad Al-Harbi, CTO of a major Saudi retail group with over 300 stores across the Kingdom, first approached Dsquare Global, his frustration was evident.

"We're caught between competing priorities," he explained. "Our business needs the agility and innovation that cloud platforms offer, but we face strict regulatory requirements about where certain data can reside. Meanwhile, our IT team is spending 70% of their time just maintaining existing systems rather than driving digital initiatives that would actually benefit the business."

The retail group was under increasing pressure to accelerate its digital transformation. E-commerce competition from both regional and global players was intensifying. Customer expectations for omnichannel experiences were growing. New store openings required faster infrastructure deployment. And the company's ambitious expansion plans into neighboring GCC countries demanded scalable, flexible IT capabilities.

Yet the organization was constrained by its existing infrastructure:

1. Aging on-premises data centers requiring significant capital investment to upgrade
2. A complex application landscape including legacy retail systems difficult to modernize
3. Limited disaster recovery capabilities with concerning single points of failure
4. Performance issues during peak shopping seasons like Ramadan and Eid
5. Compliance requirements from Saudi regulators regarding certain data types

Most concerning was the disproportionate amount of IT resources dedicated to "keeping the lights on" rather than enabling business innovation. New digital initiatives were consistently delayed because the infrastructure team couldn't provision resources quickly enough to support development and testing.

"Our competitors are moving faster because they're leveraging cloud technologies," Mohammad noted. "But we can't simply lift-and-shift everything to public cloud platforms without addressing data sovereignty requirements and ensuring our critical systems remain available even if connectivity issues arise."

Beyond Simple Cloud Migration: A Hybrid Multi-Cloud Strategy

After a comprehensive assessment of the company's application portfolio, regulatory requirements, and business objectives, we recommended against the typical "all in" cloud migration approach that might work in other markets. Instead, we designed a sophisticated hybrid multi-cloud architecture specifically tailored to Saudi retail operations, powered by our Cloud Computing Services.

1. Data Classification and Sovereignty Framework

The first critical step was developing a detailed data classification scheme that identified:

• Customer information subject to Saudi personal data protection requirements
• Financial data requiring local processing under SAMA guidelines
• Operational data that could benefit from cloud processing while remaining regionally hosted
• Non-sensitive data that could be housed in international cloud regions

This granular classification enabled informed decisions about data placement and processing based on actual regulatory requirements rather than general assumptions.

2. Regional Cloud Zone Utilization

Rather than defaulting to international cloud regions, we designed an architecture leveraging:

• Saudi-hosted zones from major cloud providers for regulated data
• UAE-based cloud regions for disaster recovery and regional operations
• Private cloud infrastructure for the most sensitive workloads and systems requiring guaranteed performance
• International cloud regions for development, testing, and analytics workloads

This approach balanced compliance requirements with performance considerations, acknowledging that proximity to Saudi customers and stores impacted application responsiveness.

3. Multi-Cloud Operations Model

Instead of standardizing on a single cloud provider, we implemented a strategic multi-cloud approach:

• Microsoft Azure for Microsoft-centric workloads and productivity applications
• Amazon AWS for e-commerce and consumer-facing digital services
• Google Cloud Platform for analytics and machine learning capabilities
• Private cloud for legacy retail systems and point-of-sale infrastructure

This approach leveraged each platform's strengths while avoiding vendor lock-in, particularly important given the evolving cloud provider landscape in Saudi Arabia.

4. Application Modernization Prioritization

Rather than attempting to migrate all applications simultaneously, we developed a phased modernization approach:

• Replatforming suitable applications to containerized environments for portability
• Refactoring high-value digital services to cloud-native architectures
• Retaining certain legacy systems in private cloud with modern integration layers
• Replacing systems at end-of-life with cloud-based SaaS alternatives where appropriate

This pragmatic approach focused transformation efforts on applications delivering the highest business value rather than pursuing a technical agenda disconnected from business outcomes.

Implementation with Regional Context

The implementation strategy was as important as the technical architecture, requiring careful consideration of regional factors:

1. Skills Development: Comprehensive training programs for the IT team on cloud technologies, with Arabic-language options and hands-on workshops
2. Cultural Change Management: Programs addressing the shift from infrastructure ownership to service management
3. Regional Connectivity Optimization: Network architecture accounting for Middle East connectivity challenges
4. Saudi-Specific Security Controls: Implementation of security measures aligned with NCA cybersecurity requirements
5. Phased Migration: Starting with non-critical systems to build confidence and expertise

Transformative Results Across the Business

Within 18 months of beginning the transformation, the results exceeded expectations across multiple dimensions:

Operational Impact

1. 62% Reduction in Infrastructure Provisioning Time: New environments that previously took weeks could be deployed in days or hours
2. 78% Improvement in System Availability: Enhanced architecture eliminated most single points of failure
3. 43% Decrease in Infrastructure Management Effort: Automation and managed services freed IT resources
4. 91% Faster Disaster Recovery Capabilities: Regional cloud resources enabled robust business continuity

Business Outcomes

1. New Store Technology Deployment Time Reduced by 67%: Opening new locations became significantly faster
2. Time-to-Market for Digital Initiatives Improved by 54%: New customer experiences reached the market much faster
3. 35% Increase in E-commerce Platform Scalability: The online platform handled Ramadan and sale peaks without performance issues
4. 42% Cost Savings During Off-Peak Periods: Cloud resource elasticity reduced costs during slower business periods

Financial Results

1. 29% Reduction in Total Infrastructure TCO: Despite increased capabilities, overall costs decreased
2. Capital Expenditure Reduced by 73%: Shift from purchasing hardware to consumption-based models
3. IT Innovation Budget Increased by 47%: Resources shifted from maintenance to value-creation
4. ROI of 387% on Cloud Transformation Investment: Exceeded business case projections

Perhaps most importantly, the IT organization transformed from being perceived as a cost center to becoming a strategic enabler of business initiatives. Mohammad reflected on this shift: "Before, business leaders would develop plans and then come to IT asking how long it would take to support them. Now, IT is at the table from the beginning, helping to shape digital initiatives because we have the agility to deliver quickly."

Lessons for Organizations Across the Middle East

This transformation highlighted several important lessons for companies throughout the region:

1. Regional Cloud Strategy is Essential: Organizations in the Middle East require cloud approaches tailored to regional regulatory, connectivity, and business realities—global playbooks must be adapted accordingly.
2. Hybrid is Reality for Most Organizations: For the foreseeable future, most large enterprises in Saudi Arabia and the UAE will operate hybrid environments balancing on-premises, private cloud, and public cloud resources based on workload characteristics.
3. Multi-Cloud Offers Strategic Advantages: Leveraging multiple cloud platforms based on their respective strengths provides both technical and commercial benefits while avoiding overreliance on any single provider.
4. Data Classification Drives Architecture: Detailed understanding of data types and their regulatory requirements should inform infrastructure decisions rather than blanket policies.
5. People Transformation Equals Technical Transformation: Successful cloud adoption requires as much investment in skills development and organizational change as in technology implementation.

As cloud services continue to mature in Saudi Arabia and across the GCC, organizations have unprecedented opportunities to accelerate digital transformation. However, success requires thoughtful adaptation of global cloud approaches to the unique requirements of the Middle Eastern business environment.

Is your organization struggling to balance cloud innovation with regional requirements? Contact Dsquare Global for a confidential consultation on developing a cloud strategy tailored to your specific needs within the Saudi and UAE business context.

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