BHP’s Dual Cloud Digital Transformation Strategy
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BHP – the multinational mining giant – has signed agreements with AWS and Microsoft Azure as their long-term cloud providers to support their digital transformation journey. This move is expected to accelerate BHP’s cloud journey, helping them deploy and scale their digital operations to the workforce quickly while reducing the need for on-premises infrastructure.  

Ecosystm research has consistently shown that many large organisations are using the learnings from how the COVID-19 pandemic impacted their business to re-evaluate their Digital Transformation strategy – leveraging next generation cloud, machine learning and data analytics capabilities.

BHP’s Dual Cloud Strategy

BHP is set to use AWS’s analytics, machine learning, storage and compute platform to deploy digital services and improve operational performance. They will also launch an AWS Cloud Academy Program to train and upskill their employees on AWS cloud skills –  joining other Australian companies supporting their digital workforce by forming cloud guilds such as National Australia Bank, Telstra and Kmart Group.

Meanwhile, BHP will use Microsoft’s Azure cloud platform to host their global applications portfolio including SAP S/4 HANA environment. This is expected to enable BHP to reduce their reliance on regional data centres and leverage Microsoft’s cloud environment, licenses and SAP applications. The deal extends their existing relationship with Microsoft where BHP is using  Office 365, Dynamics 365 and HoloLens 2 platforms to support their productivity and remote operations.

Ecosystm principal Advisor, Alan Hesketh says, “This dual sourcing is likely to achieve cost benefits for BHP from a competitive negotiation stand-point, and positions BHP well to negotiate further improvements in the future. With their scale, BHP has negotiating power that most cloud service customers cannot achieve – although an effective competitive process is likely to offer tech buyers some improvements in pricing.”

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Can this Strategy Work for You?

Hesketh thinks that the split between Microsoft for Operations and AWS for Analytics will provide some interesting challenges for BHP. “It is likely that high volumes of data will need to be moved between the two platforms, particularly from Operations to Analytics and AI. The trend is to run time-critical analytics directly from the operational systems using the power of in-memory databases and the scalable cloud platform.”

“As BHP states, using the cloud reduces the need to put hardware on-premises, and allows the faster deployment of digital innovations from these cloud platforms. While achieving technical and cost improvements in their Operations and Analytics domains, it may compromise the user experience (UX). The UX delivered by the two clouds is quite different – so delivering an integrated experience is likely to require an additional layer that is capable of delivering a consistent UX. BHP already has a strong network infrastructure in place, so they are likely to achieve this within their existing platforms. If there is a need to build this UX layer, it is likely to reduce the speed of deployment that BHP is targeting with the dual cloud procurement approach.”

Many businesses that have previously preferred a single cloud vendor will find that they will increasingly evaluate multiple cloud environments, in the future. The adoption of modern development environments and architectures such as containers, microservices, open-source, and DevOps will help them run their applications and processes on the most suitable cloud option.

While this strategy may well work for BHP, Hesketh adds, “Tech buyers considering a hybrid approach to cloud deployment need to have robust enterprise and technology architectures in place to make sure the users get the experience they need to support their roles.”

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