Why Cloud?

Why CloudIT leaders:

It’s time to take an honest look at the business and business goals of your organization. How does IT drive BUSINESS objectives? Can you honestly say that your IT infrastructure contributes to your company’s bottom line? Or are you still a “cost center?” What you will find is that there are big areas of opportunities to enhance business strategy, free up real dollars in hard savings, and free up soft costs. Although out-of-pocket savings is the current focus of the benefits of the Cloud, it’s the soft costs that may provide the biggest business impact.

Freeing up “facilities”

Moving systems to the Cloud will allow key essential resources to focus on those projects that directly impact the business. Your IT group will better serve the organization as a whole by providing the foundation to grow and expand. So what do I mean by facilities? Think on a broader scale. I am not talking about a couple of racks, I’m talking ALL of your physical facilities. Just think of the benefits of not being tied to a physical space:

  • Production and/or Disaster Recovery: you don’t have to house the majority of your hardware onsite. The Cloud can potentially house both primary production AND disaster recovery. Two different locations in the Cloud, nothing in your building.
  • Utilities: Electricity, phone, wireless connectivity, every square foot has associated costs, and much of it can be Cloud based. No more need for the long term contracts and responsibilities a company’s physical space carries. Your utilities don’t have to change when your address does.

The goal of the Cloud is to provide efficiencies to the businesses, both from a cost and support prospective. So why wouldn’t you want:

  • Quicker turns on IT projects
  • Stability across the application base
  • More efficient use of skilled resources
  • Mobility

Shifting applications and functions only makes sense. Consider Microsoft Office 365 as a starting point. Even if you only use Outlook and not the other applications included – SharePoint, CRM, SkyDrive — consider what you WON’T have to worry about:

  • Licensing
  • Version control
  • Hardware life cycles
  • Facility space and costs

And look at the benefits:

  • Ease of access regardless of location
  • Plays right into  Disaster Recovery and Business Continuity plans
  • Latest and greatest versioning / functionality

The bottom line is that the Cloud does provide significant benefits to any business.  It’s time to take a hard look at how your IT footprint can contribute to your company’s success.

Cloud 101: Understand the Plan

cloud plan

Cloud questions

Moving to the Cloud is a good move in most cases HOWEVER – It’s not as easy as most service providers want you to believe. If the analysis isn’t done properly up front it can lead to poor performance, interruptions in business, and, what I am currently seeing, costs getting out of control quickly.

CIO’s and CFO’s are rightly asking:

Why are our IT Budgets significantly higher?

Wasn’t the Cloud supposed to save us money?

The Reality – The Cloud is not for everything and everybody!

You need 2 things from your service provider:

  1. First and most important – Due diligence
    Your service provider should understand your business and make that the priority 1. For example: Recently I have seen two companies, one an engineering firm and the other in the Insurance industry, that have very dynamic IT needs. These needs were clearly not understood and documented in the detail that was needed to ensure a successful cloud endeavor. Both company’s need to spin up and down environments for pre-determined times. So who’s managing this?
  2. Which leads to my second point – Education
    During the discovery phase, service providers need to make sure that whoever manages the cloud provider/vendor is made aware of the pricing model and supported content to manage the environment properly, what to expect and what controls need to be implemented to ensure environments are managed correctly.

The bottom line is: Many providers are on the bandwagon to sell Cloud. A lot of them don’t have preferred hosting partners and focus only on the transitional services. So clients must understand:

  • whether discovery or due diligence services are provided
  • whether that report includes recommendations regarding which applications should move to the Cloud and which should stay on premise
  • what hosting partner or Cloud service is recommended
  • estimated ROI

Cloud strategy is critical to Cloud success, even if clients have to enter these unchartered waters on their own.