Restructuring IT organizations is crucial for cloud transformation because it allows companies to leverage the full capabilities of cloud technologies. CIOs recognize that simply moving operations to the cloud without changing the IT department's structure and processes can lead to missed opportunities for innovation and efficiency. For instance, CIO Neil Holden of Halfords Group emphasized that a new approach is necessary to maximize cloud investments, which includes reorganizing teams to work in agile circles rather than traditional linear processes.

Organizations can prepare their IT teams for cloud success by investing in training and hiring professionals with cloud expertise. For example, CIOs like Lev Gonick of Arizona State University have flattened their organizational structures to create flexible teams focused on specific areas, allowing for rapid reconfiguration and skill development. Additionally, companies like Liberty Mutual have transformed their infrastructure teams into centralized digital services units, ensuring that all team members are aligned with cloud capabilities and can deliver high-quality results efficiently.

If organizations do not adapt their IT practices for cloud environments, they risk merely relocating their servers without realizing the full benefits of cloud technology. This can lead to inefficiencies, a lack of innovation, and slower response times to market demands. For instance, CIO Brad Stone of Booz Allen Hamilton noted that failing to integrate security operations across different infrastructure teams resulted in fragmented approaches and increased risks. By not rethinking their IT strategies, companies may struggle to keep pace with the speed and agility that cloud adoption enables.