Wall Street Journal CIO Journal
Technological change has always outpaced change within the IT organization. Until now. Between cloud computing, big data, consumer IT, executives feeling capable of making more of their own technology decisions, and the ongoing business pressures for speed, agility and innovation, executives are eager to rethink and reinvent the IT department.
In our survey of 152 senior business executives and 162 IT executives, more executives singled out the IT organization than any other as the function they wanted to rebuild from scratch. Half will revamp their IT organization in the next 12 months. Give CIOs credit. Even more than other executives, they realize the status quo can’t hold. Forty percent of IT executives picked their own function as the prime target for reinvention. The danger isn’t that executives won’t take action. It’s that they will build their new IT organization and architecture, and rewrite the CIO’s job description, upon a shaky assumption: the future is sure to be flat, connected and tech-enabled.
As businesses switch to cloud computing demand for some traditional IT roles will plummet – but new, different jobs will be created instead. Tech industry experts are predicting that demand for certain tech roles will dramatically decline over the next decade as organisations switch to cloud computing. By 2020 the majority of organisations will rely on the cloud for more than half of their IT services, according to Gartner’s 2011 CIO Agenda Survey.
After organisations have switched to the cloud the number of staff needed to manage and provision individual pieces of IT infrastructure – the likes of networks, storage and servers – can be scaled back, as much of the virtualised infrastructure that cloud is built upon can be automated. The upshot will be whereas 70 per cent of IT resources are devoted to operating IT infrastructure today, by 2020 just 35 per cent of resources will be used in operations, according to the Gartner report New Skills for the New IT.
The Harvard Business Review
The financial reasons for the huge growth of cloud services seem crystal clear: cloud computing simply allows us to pay for what we need only when we need it, right?
But the truth is, companies adopting cloud computing often miss the risk and depth of change needed to embrace a cloud economics model as they embrace cloud services. It turns out that the financial model for cloud computing has far more nuances for both a company and its cloud services provider than many people understand up front.
IDG Enterprise news release
Framingham, Mass. – IDG Enterprise—the media company comprising CFOworld, CIO, CIO Executive Council, Computerworld, CSO, DEMO, InfoWorld, ITworld and Network World—releases the results from the 2012 Cloud Computing survey examining cloud computing implementation, usage, investment plans and vendor requirements.
The survey, completed by more than 1,650 IT and security decision-makers from a range of industries, highlights the growth in cloud computing investments, demonstrating the value cloud computing provides to organizations. Respondents state that 34% of their current IT budget is allocated to cloud computing solutions and more than half (63%) expect to increase spending in the next 12 months. On average, organizations will increase cloud computing spending by 16%.
For the full release click here
The CIO and CMO of Model Metrics, a cloud computing and consulting firm, explain how their philosophy of radical openness has created a closely aligned partnership that benefits the company as a whole.
For the full story click here
IDC Press Release
Eager to simplify their current IT environments and introduce new initiatives to enhance overall business value, IT leaders are embracing server cloud computing as a viable option for decreasing complexity by adopting converged systems that arrive pre-integrated and ready for use (private cloud) or are offsite entirely (public cloud). According to new research from International Data Corporation (IDC), worldwide revenue for servers deployed to public clouds will reach $3.6 billion in 2015 while private cloud server revenue will balloon to $5.8 billion. Read more
That is the big IT question for a lot of companies
Wall Street Journal, 4/25/11
Mobile devices, social media, data mining, videoconferencing, virtual reality, blogs, tweets…
The list of technologies that could offer companies big-time benefits, or lead to big-time disasters, is daunting. So daunting, in fact, that top management might be tempted to throw up their hands and let lower-level managers referee the debate over information technology.
But that is exactly what they shouldn’t do.
In a digital economy, IT is the foundation for doing business. This is easy to see at born-digital companies like Amazon.com and Google. But companies of all types are discovering that how they manage IT is crucial to their competitiveness. It determines whether the company’s dealings with customers and suppliers are efficient, scalable and timely; whether employees have the information they need to do their jobs; and whether employees throughout the company see technology as a tool to move forward, or an anchor that keeps them running in place.
The New York Times, 4/23/11
As technical problems interrupted computer services provided by Amazon for a second day on Friday, industry analysts said the troubles would prompt many companies to reconsider relying on remote computers beyond their control.
“This is a wake-up call for cloud computing,” said Matthew Eastwood, an analyst for the research firm IDC, using the term for accessing services and information in big data centers remotely over the Internet from anywhere, as if the services were in a cloud. “It will force a conversation in the industry.”
That discussion, he said, will most likely center on what data and computer operations to send off to the cloud and what to keep inside the corporate walls.