Only 5 percent of companies have a Cloud Computing strategy while just 20 percent have the resources internally to develop one, according to a survey of more than 140 global IT decision-makers conducted by ISG.
Cloud Computing is widely seen as the next evolution of IT services, yet only a fraction of organizations has have a strategy for dealing with it. Developing a plan to take advantage of this game-changing innovation in 2011 should be at the top of every CIO's agenda.
Here are the Top 5 reasons why organizations need to develop a strategy now to take advantage of Cloud Computing’s disruptive impact on technology:
1. The iPad Effect on Business: The enormous popularity of the iPad has not only been lucrative for Apple, it has also shown the world how the rapid adoption of Cloud Computing by consumers is putting enterprises on the spot. As executives and employees have grown enamored of the iPad and its ability to access services from the Cloud with ease, they are increasingly attempting to use them for work. To avoid the risk and confusion created by individuals going around the IT department with their own ad-hoc implementations, organizations need a plan for supporting Cloud Computing widely.
2. Need for Cost Control: While the “Great Recession” may have subsided, uncertainty about the speed and timing of an economic recovery is keeping the pressure on organizations to reduce costs and limit investments until business demand returns. TPI Research has found that the ability to more tightly manage IT spending is the number one reason clients are interested in Cloud Computing. As budgeting for 2011 begins, organizations should be preparing to leverage this disruptive technology to reduce costs and capital expenditures and align future spending with value.
3. Pricing Confusion: In theory, the Cloud Computing market is pay-as-you-go. But in practice, it can be hard to discern just what you will pay and just what you will get. Pricing and terms vary widely, and there is no standard methodology for service level agreements. The business models for public, private, hosted and hybrid solutions are all different, and figuring out the best deal for your organization will require enterprise-wide planning, research and testing, all of which takes time.
4. Changing Landscape: There has been a flood of new Cloud-based offerings coming on the market recently, while intensification in merger-and-acquisition activity has caused major shifts in the service provider community. Organizations should be thinking of their Cloud Computing strategy as a roadmap that will help them navigate this increasingly cluttered landscape and arrive at the right set of vendors and solutions for their needs.
5. Only the Beginning: Cloud Computing only works as well as an organization manages it. The key to achieving the benefits it promises is with an integrated, centralized IT Service Management (ITSM) system dedicated to demand management, capacity management and service integration. The only path to such a system is through proactive strategic thinking well in advance of implementation. Migrating a service to the Cloud is only just the beginning.
Every company needs a strategy to deal with the rise of Cloud Computing. The ISG Cloud Computing Business Solution Unit advises clients interested in moving IT and business process operations to the Cloud as a way to reduce costs, improve flexibility or create scale to achieve their business objectives.
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