Cloud transformation is no longer a future goal—it’s a present-day necessity. But how do organizations approach it strategically, ensuring not just technical success but real business value? In this episode of Cloudstream, Riz Haque sits down with Jussi Mäkinen, Director of Cloud Transformation at CGI Finland, to discuss how organizations can modernize their application portfolios and fully embrace cloud as a business enabler.
From infrastructure to application modernization, Mäkinen highlights that technology is no longer just an IT topic—it’s a core business strategy. "The difference between success and failure as a company comes through software," Mäkinen explains. "Cloud is not about cost optimization; it’s about transforming the business to be more competitive."
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The foundation of successful cloud transformation lies in aligning technology with business strategy. According to Mäkinen, application portfolio modernization is at the heart of this transformation. However, many organizations fail to look beyond infrastructure and miss the real business value.
"Cloud should not be approached from a purely technical perspective," Mäkinen stresses. "It’s not about moving data centers but about enabling business processes and improving the customer experience with modern technology."
Mäkinen emphasizes that a modern application portfolio is key to success in the digital world. "It’s always about software. The real business enabler is not hardware or devices—it’s the software that drives your operations," he says. "To remain competitive, organizations must transform their business processes through technology."
Why Cloud Transformation Is Gaining Momentum
Today, almost every organization is a digital organization at its core. According to Mäkinen, the competition lies in two areas:
- Who provides better customer service through digital channels
- Who can run internal operations more efficiently
"Cloud enables both," Mäkinen explains. "But the real power of cloud isn’t infrastructure—it’s the speed to develop, innovate, and adapt."
Companies adopting cloud can innovate faster, experiment more easily, and fail quickly without significant risk. "Cloud gives you the agility to respond to changing market demands," Mäkinen says. "It’s also worth noting that hyperscalers—like AWS, Microsoft, and Google—are leading global technological innovation. The most cutting-edge data platforms and AI tools are all born in the cloud."
Finland’s Digital Journey: Are We Falling Behind?
Reflecting on the state of cloud adoption in Finland, Mäkinen offers a candid assessment. "Finland used to be a front-runner in digitalization," he says. "But in recent years, I’m concerned we’ve fallen behind. Too many organizations are focused on migrating data centers rather than modernizing their core business processes."
He praises a few success stories, such as the Finnish Tax Authority, which embraced cloud to improve service delivery and significantly boost development speed. "They’ve become a benchmark for how public-sector organizations can leverage cloud to improve customer experience," Mäkinen notes.
However, Mäkinen stresses that many companies still approach cloud as a cost-saving initiative rather than a business enabler. "If business leaders truly understood what cloud could do, they’d be demanding more from their CIOs," he says.
AI and Automation: The Next Frontier
Mäkinen believes that the future of cloud transformation is inseparable from AI and automation. "AI is redefining how IT organizations work," he explains. "Some people even ask if developers will still be needed in the future. Imagine a scenario where you can simply tell an AI to develop an application and deploy it the next day—that’s where we’re headed."
At CGI, Mäkinen and his team are preparing for this shift by integrating AI into the software development lifecycle. "We’re training people and building the processes now so that we can deliver faster and more efficiently when the AI-driven future arrives," he says.
One area where CGI has already made strides is in public healthcare. "We’ve developed AI solutions that reduce administrative tasks for doctors and nurses, allowing them to focus more on patient care," Mäkinen shares. "It’s a tangible example of how technology can improve lives."
Preparing for What’s Next
As the pace of technological innovation accelerates, organizations must be ready for constant change. "The next wave is coming fast," Mäkinen warns. "If Software-as-a-Service is dying, as Microsoft’s CEO recently suggested, and AI is replacing traditional applications, how prepared are Finnish companies?"
CGI is already helping clients embrace AI and prepare for this next phase of transformation. "We’re working to make sure they’re not just ready for the change—they’re leading it," Mäkinen concludes.
This episode was packed with insights on cloud transformation and modernization. In our next episode, we’ll explore how to lead cloud transformation projects successfully.
