In his InfoWorld blog, Dave Linthicum cites (yet another) survey on CIO plans (or not) for cloud computing.  No surprise, the survey reported that “security concerns were the biggest barriers to widespread consumption of cloud services.

Dave believes the true problem is one of understanding:

“I’m not sure that the rapidly emerging cloud computing universe has done a good enough job in leading existing enterprise IT shops to cloud computing. Everyone is talking about the "why" — leaving out the "how" and the "what."

CIOs are a bit wary around another paradigm shift. You have to admit that we’ve had one or two over the last 20 years that have not gone anywhere, and the reality for several others never measured up to the hype. CIOs are measured by their ability to make the trains run on time within their own spheres of control, not about how innovative they can get with emerging and overhyped technology.”

Dave continues with ever-practical advice on how to “enlighten the rank-and-file CIO out there around the benefits of cloud computing”:

“First, look at cloud computing for what it really is: architectural options to make existing IT systems more effective. You drive this from the inside out, not the outside in. There is no "big switch" or "huge shift." Instead, you solve small, well-defined problems with the best solution. In some instances, cloud computing is an instance of a solution and not always the solution.

Second, do a prototype. Cloud computing means not having to buy hardware and software, so taking cloud computing for a test-drive is inexpensive and a great learning experience.

Finally, and most important, understand that cloud computing is an evolutionary — not a revolutionary — path for most organizations. The use of cloud computing will be around a systemic change that takes a long period of time for most IT organizations. That’s something a CIO can responsibly handle.”

For more practical cloud computing advice from Dave, check out his latest book: Cloud Computing and SOA Convergence in Your Enterprise.

Posted by brenda michelson at 10:56 am in adoption, Cloud Watch, pundit positions | Permalink | Comments(1)
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McKinsey just published a new premium report, Time to raise the CIO’s game.  According to the report, the post downturn “new normal is marked by persistent uncertainty, tighter credit, lower consumer spending, and greater government involvement in business.”

The report continues:

“For executives who run major IT organizations, the implications are clear: they will have to make the IT function dramatically more productive, use IT more effectively to meet larger company goals, and embrace disruptive technologies that will shape the new economic terrain.”

The full report speaks to improving business-IT alignment, making fundamental IT changes, as well as embracing technology-based innovation.  The report is supported by a recent survey and focuses on Europe.  However, as the report states, much of the advice can be applied globally.

Finally, the “Cloud Watch” piece.  In a section on “Closing performance gaps”, McKinsey shares the following:

“Since the downturn began, many CIOs have scrambled to control costs by delaying investments where possible and pushing service providers to cut prices. Some CEOs are raising cash through the sale and leaseback of assets such as data centers. But as competition intensifies, a more fundamental restructuring of IT operations will be in order.

Certain companies are rethinking their current approaches to procurement in hopes of replacing the current model of capital spending on infrastructure with a more flexible approach to operating expenditures. Cloud computing and software-as-a-service, for example, allow companies to purchase computing power and application services that scale with demand and thus to avoid large capital outlays on infrastructure capacity to meet peak loads. The cash savings from such efforts can be critical for self-funding additional IT investments: shifts in certain basic IT operations, for instance, could finance a streamlined IT architecture that will improve long-term productivity.”

[emphasis is mine]

Posted by brenda michelson at 5:59 pm in Cloud Watch, economics | Permalink | Comments(0)
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