Cloud Strategy in the First 100 Days: Why Early Decisions Define Long-term Value
In M&A, the first 100 days after a deal closes are critical. Decisions made in this period often define how the next 1,000 days play out. Nowhere is this more evident than in cloud strategy.
The cloud has become the backbone of modern software development and digital operations. For portfolio companies with ambitious growth plans, it represents both one of the largest line items in the P&L and one of the most powerful levers for value creation. Getting the cloud infrastructure right early can accelerate modernization, improve margins, and align technology with the investment thesis from the outset.
Why the First 100 Days Matter
Private equity firms and operating partners know that early clarity is essential. A cloud strategy defined in the first 100 days sets the tone for everything that follows:
Optimizing spend. The cloud bill often hides inefficiencies such as unused resources, poor discounting, or workloads deployed on the wrong services. Left unchecked, these costs quietly erode EBITDA.
Accelerating modernization. A new investment is often the trigger for long-delayed upgrades: containerization, microservices adoption, or refactoring legacy applications. Getting a modernization plan in motion early avoids the painful pivots that come when growth collides with brittle architecture.
Unlocking AWS funding. Amazon Web Services provides funding and credits for companies investing in modernization and migration. Tapping into these programs can defray costs and accelerate value creation.
More Than Cost Savings
Too often, cloud conversations stop at cost containment. But the real power of cloud strategy is in what those savings enable. Dollars recovered from wasteful spend can be redirected to innovation: speeding up product releases, investing in go-to-market velocity, or improving customer experience.
In other words, cloud cost optimization isn’t just about lowering the bill. It’s about reinvesting in growth.
The Risks of Waiting
Delaying cloud strategy decisions can have long-term consequences. A portfolio company that defers modernization may find itself stuck with infrastructure that can’t scale, or paying premium rates for workloads that could be discounted or re-architected. Correcting these issues later is not only more expensive, but it also often requires slowing down the roadmap to re-platform under pressure.
By contrast, investors who address cloud early in the post-close period set their companies up for smoother scaling. They avoid reactive pivots and create a foundation for deliberate, thesis-aligned execution.
A Blueprint for Cloud Success
For operating partners and portfolio executives, cloud diligence and early post-close planning should focus on:
Visibility. Understand the current state of cloud spend, architecture, and team practices.
Efficiency. Identify immediate opportunities to reduce costs without impacting delivery.
Alignment. Ensure the cloud roadmap supports business goals, whether that’s faster releases, international expansion, or improved margins.
Leverage. Explore programs from providers like AWS that can support migrations, modernization, or innovation initiatives.
The Bottom Line
In today’s environment of fewer deals and more pressure, private equity firms can’t afford to let cloud decisions drift. The first 100 days are an opportunity to set direction, capture quick wins, and align engineering and business goals around a common strategy.
Done right, cloud strategy is more than an IT decision. It’s a lever for value creation that can change the trajectory of a deal.
