Tag Archives: Cloud

Next-generation IT procurement

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I’ve blogged several times recently about the impact of ‘disruptive’ technology on the world and on the IT industry, and with good reason; disruptors are the new trends and practices which re-define the ways in which we work, communicate and pretty much conduct our daily lives.

One of the latest disruptive developments in the IT world is in consumption – how we acquire and utilizeIT products and services. And as with so much else just now, it is being disrupted and driven forward by cloud computing.

a shift in procurement thinking

Traditionally IT procurement has been driven by the CAPEX model, whereby vendors agree deals with customers for products or services which see the customer pay around 70 per cent of the project cost up front. Great business for product vendors, guaranteed money up front and happy vendor CEOs. This has meant that the risk and the responsibility lie with the customer to leverage the product capabilities.

The industry is now fast headed in the direction of the OPEX consumption model – essentially pay-per-use – which puts things very much more in favour of the customer who is buying the technology, rather than the vendor.

As with all things in IT, the shift in thinking and evolution of business practices faces a number of key barriers to implementation – in this instance, cost, complexity, adoption and risk. And it is in addressing these barriers where success in next generation IT procurement lies.

changing the model

What this OPEX consumption approach does is to change the game from a vendor perspective and make services more important than product sales. The saying was always that ‘the customer is king’, but that has become ever more true today thanks to cloud computing and services empowering customers and end-users like never before.

This new subscription model, powered by the cloud, has transformed IT provision into a service versus product approach. The OPEX model reduces both customers’ costs and risk, and allows them to experiment in a more risk bounded environment. They can start small and try solutions and services out, and if they gain business benefit, then they can and will expand their usage of that technology. This is the beauty and attraction of the cloud computing and managed services approach – simplicity. In the age of the iPhone, IT mobility and personal empowerment, end-users just love simplicity.

So vendors need to change their thinking in response to this shift in procurement mentality. There are examples in the market now of vendors offering a ‘try before you buy’ approach to encourage potential customers in. Customers no longer want huge implementation costs – smartphones for example don’t come with a thick user manual – and simplicity is key. The simpler the user engagement, the more managed the service such as SaaS or IaaS, the lower the risk from the customer perspective, the more likely the increase in adoption.

the consumption gap

Much of this new procurement thinking has been driven by the consumption gap. Customers grew tired of wasting money on products and services features they simply never used, or in fact, ever really needed in the first place.

Under the CAPEX model, all the challenges and the risk were placed on the customer. They had tointegrate the solution into their operation, maintain it and so on. They were forced to buy separate layers of systems and applications for a premium price and then only used a small percentage of their capabilities, since many of its functions might not be necessary to their business. The move to the cloud-based model, or try before you buy, reduces the impact of this and gives organizations much more agility. In effect, the iPhone apps model has been duplicated within enterprise IT. So customers find that they have more choice – and they are responding to that.

The demand is undoubtedly there; IDC recently surveyed organizations in Australia and found that 86 per cent of Australian enterprises are now using cloud computing, up from 71 per cent the previous year. The global cloud market will be worth $240 billion by 2020. As IDC called it, cloud is now “business as usual.”

staying at the cutting edge

The old adoption model also meant engaging in a long procurement cycle – often several years – to specify, commission, build and integrate an IT solution into operations. The consumption model enables organizations to circumvent this. If they spot a trend they have the agility to respond to it immediately and get systems in place more quickly.

This is one of the key benefits to customers under the managed services and cloud delivery model; they can enjoy fast adoption based around mobility and rapid roll-outs. Companies can always enjoy the most up to date models and versions – for example many organizations remain locked in to out of date email applications. The cloud enables them to always be in a state of upgrading, always enjoying the benefits of the latest and greatest version.

customer simplicity, vendor complexity

So the next generation procurement model makes life easier and more predictable for the customer – but for product vendors, there are challenges to overcome. Under this service versus product approach, customers are able to keep things as simple or as complex as they choose. They can procure and use a device or technology at the top level and enjoy value from it, or delve further down into its capabilities and enjoy much greater benefits. Vendors will need to adapt to this.

Similarly, the managed services approach also gives customers simplicity in support terms; end-users don’t like complexity and prefer simplicity in IT support. Under the subscription model, their provider can use in-depth analytics and Big Data to provide them with the quality of service and support that they demand. The cloud even means that IT support has moved online, and all these new provisions are being powered by end-user demand. The consumer is making the decisions now. And cloud delivery and the subscription or pay-for-use model is how they want their IT.

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The Ins and Outs of Cloud and Outsourcing

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The speed at which IT is developing and the general nature of modern business means that many enterprises rely on specialists to manage our systems and applications. Economic and competitive pressures have made it imperative for organisations of all sizes to focus on their core competencies and turn to third-parties to assume responsibility for key corporate functions. The most common form of outsourcing is the cloud. The cloud simplifies many aspects of IT and the business services world.

Outsourcing is by no means a new or revolutionary concept and to date, it continues to deliver consistent financial benefits. By engaging a cloud service, a small organisation can have access to leading technology without large investments, while global enterprises can ensure that business sectors are managed effectively and efficiently.

Aside from obvious financial benefits, the list of incentives continues to grow: service quality, access to innovation, the removal of non-core functions, access to leading IT skills and resources, and forecast future IT spending all contribute.

For any enterprise, the benefits of outsourcing to the cloud are only guaranteed if certain guidelines and precautions are put in place, and in order to do this, you must understand the challenges:
• Potential loss of control over certain business functions
• Rigidity and a general lack of flexibility in the services received
• Time and effort involved in managing the service provider

The key is to select a provider whose cloud portfolio is as flexible and varied as the workloads it may handle—today and into the future. For many enterprises, the cloud is no longer a curiosity, but an opportunity to transform IT. As they think beyond one or two isolated workloads, their criteria in selecting a cloud provider become more stringent. To meet business goals for efficiency, cost-reduction, and simplification of processes, enterprises must look for a cloud provider that offers a range of services that meet today’s needs and can grow with the business.

Understanding the organisation you are outsourcing to is pivotal in addressing potential security problems, so below are some basic guidelines:

Understand the current security model

It sounds obvious, but often it is taken for granted. Evaluating the security controls currently in place in your organisation and what risks they should be eliminating, is important in knowing what you need to ask for when you seek a cloud service. This process also helps identify what is working and what isn’t, and provides you with the ability to request the same security standards in your cloud service provider (CSP). If this assessment uncovers gaping holes, you have the opportunity to rectify this with your new CSP, or if your security is up to scratch, then you have a benchmark by which to measure. Ensuring that internal security measures and your new CSP security credentials matchup is critical in delivering the safest environment possible for your organisation.

The variety of cloud solutions available – from infrastructure through to network – your cloud choice may need to integrate with existing security standards. In such cases, firewalls and other traditional security measures can be adapted to integrate with new security policies. In theory, this is the case; however a full assessment and understanding of these traditional measures may uncover non-compatibility with current systems. Understanding the full scope of your business, your requirements and your current security measures will direct you to what you need from your CSP.

Keep in mind: Change can be difficult, and risky. Have a safety net in place. Your security systems are going to change in your organisation, and to make sure it is for the better means you need to understand the security bottom line.

Don’t be afraid to: Take this security investigation as an opportunity to give your security system an overhaul.

 Ask tough questions and assess the risks

Managing your outsourcers’ security levels should not be overlooked. The CSP’s internal security policies, regulations and laws (if you are looking offshore) need to be understood and evaluated. They will help develop a picture of what the security spectrum of your business will look like in an outsourced environment and most importantly identify any current gaps.

A cloud has different avenues for attack than would otherwise be available in a traditional data centre. The increased surface of a cloud increases its vulnerabilities which puts your organisation at higher risk. Things such as virtual switches, the item connecting virtual machines with virtual networks by directing communication and data packets, and software programs that allow machines to communicate with each other, are characteristics that previously your organisation may not have been exposed to, so it is critical to understand the potential impact of this new environment.

Transferring part or all of your organisations IT footprint to the cloud is a big change with sometimes unpreventable mishaps. If a problem arises based on an unexpected incident, who is to blame? The organisation or the provider? Allocating the right responsibility needs to be determined in the initial phase to avoid any confusions in the long run. Responsibility here is in relation to your organisation and the outsourcer. Be upfront when embarking on this new relationship and opening the doors between your current IT staff and your future provider to ensure that expectations and responsibilities are measured and tracked.

Keep in mind: What you expect your outsourcer to deliver may not always be clear. Define and determine responsibilities. Ensure that your CSP offers the levels of customer service you are accustomed to, with access to expert technicians (either on-staff or through a certified partner network). For additional levels of support, find a provider that offers a range of managed and professional services to help you develop a cloud strategy, migrate to the cloud, and maintain optimal cloud performance.

Don’t be afraid to: Look up specific international security standards and be informed and aggressive when dealing with your future (or current) CSP.

 Investigate the environment

Knowing what needs to be outsourced is very different from knowing what the ripple effect will be when that segment of your organisation is actually outsourced and placed on the cloud.

Your cloud provider is now the first line of defence in your external incident management process. They must be able to detect, evaluate and report any incident in a suitable timeframe and in the process already expected by your company. Consider, too, the legal and operational impacts. By outsourcing, you are in a way, joining with another organisation, so be sure of the overall compatibility.

Consider this, too: Multi tenancy. You could be one of numerous companies that the CSP is providing service to. There is no physical separation. Investigate whether you are entering into a multi-tenant environment, and what exactly this means for your organisation and its information.

The outsourcer will be retaining a lot of information about your internal organisation workings, too. If any internal incidents occur, accessibility around records must be agreed upon and understood. Identifying individuals within the outsourcing organisation will help increase transparency and reaction around any issues.

Keep in mind: Your information is now housed inside other organisations (metaphorical) walls. This is an integrated service, designed to know the ins and outs of your organisation. Don’t be afraid to: Look for evidence that shows whether each service provider has experienced serving enterprises like yours. These include sample customer lists, reputation, track record, and existing customer base. Service providers with experience in your company’s industry or have similar customers are likely to understand your business and technology needs.

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Cyber security threats through the Cloud

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As with most of technology, security goes through periodic changes, cycles and generations. Hardware, software, applications and methodologies all arrive, become commoditised and standardized to the point of being invisible, and then come back in a new evolved form. New platforms and new devices create new opportunities but are also subject to new evolved threats – something that remains true of security.

Cloud Computing: a brand new landscape for threats

IT security threats evolve and adapt to the new IT environment. As corporate and personal IT usage habits have changed, so too have the types of security threats present in the world. New IT practices like Cloud Computing give end-users great benefits in terms of mobility, flexibility and productivity, but they also give malicious third parties new routes to breaching security and increase risks. So while the Cloud has given users a whole new world of mobile computing, it has also created a whole new landscape for hackers and viruses to attack from.

The rise and rise of mobile usage and the Cloud have seen third party attackers change their approaches. Cloud services, social media websites and Android operating system devices have all become new targets, while traditional user data and website denial of service hacks remain popular.

Recent malicious examples in Australasia have included the damaging loss of over 20,000 customer passwords by surf wear brand Billabong and Web giant Google having its Australia office’s building control system hacked into. Similarly it was revealed recently that the Reserve Bank of Australia wascompromised by a phishing attack, while the Commonwealth Bank of Australia recently stated, in the light of hacking attacks on Australia Security Intelligence Organization, that cyber security is among its top concerns.

The risks posed by hackers and phishing attacks haven’t gone away, they’ve just evolved.

the ever-changing nature of the cyber security threat

Cyber security attacks and the ways in which they affect people and organizations are always in a state of transformation. As one IT specialist finds a solution to a particular problem or type of attack, so the creative hackers out there come up with something new and improved.

So as the Cloud has played out its role as both a disruptor and an enabler in the technology world, so too new threats have emerged from it. The leading threat to both organizations and individuals is data breaches. Companies fear sensitive corporate data falling into the hands of competitors, private citizens fear their bank details and credit card information being misappropriated and abused. This is of course not a new threat in itself, but the Cloud enables new routes to the hack, virtual machines and poorly-designed multitenant databases both offering different access points.

In addition to data breaches and data loss, there are the ever-present threats of account hijacking and denial of service, both of which can now be attempted differently thanks to the Cloud. API keys – the coding that Cloud applications use to identify each other – are another tool in the hacker’s armory, allowing malicious parties to launch denial of service attacks or accumulate fees and charges on a victim’s account.

cyber security: a critical business issue

So while the threat is still similar in nature to previously, the avenues to getting in have increased. What this means is that it is time for companies to start thinking about security as a defined strategic issue.

Data security threats and attacks are major factors in successfully achieving regulatory compliance, whatever industry a company might be in. Non-compliance through having inadequate protection of corporate and customer data is a terrifying thought for any company director, so cyber security now really needs to sit at the top of any senior executive’s ‘to do’ list.

but end-users suffer too

At an individual level, the Cloud has helped to bring phishing into the mainstream of cyber security threats. Phishing was previously quite an insidious tactic, but today it has become incredibly brazen and up front, particularly in the mobile world. Because people now use their mobile devices by second nature, often inputting their password dozens of times a day, users are simply less vigilant.

It is estimated that mobile users look at their devices for one reason or another up to 150 times per day – this means entering that precious four-digit PIN code repeatedly – and how many end-users are really certain about what site they are distractedly tapping their password into?

changing threats mean changing strategy

To address this ever-changing security threat, a change of thinking is required. For many years companies and governments acknowledged the need for IT security, were both aware of and concerned about the threats involved, but were still very reactive. So this change in thinking means no longer considering IT security as ‘just’ an IT issue. The focus must change to making cyberspace a strategic asset which requires as much security as physical borders and buildings do.

The Australian government has recently taken the proactive step of investing in cyber security, identifying the threat as a strategic one which affects not just ‘the Web’, but the country’s entire economy, infrastructure and the nation’s future prosperity. It has been estimated that during 2012, 5 million Australians were affected by cyber security issues, at a cost to the country of around $1.6 billion. So it is to the government’s credit that even in an election year it has given the problem due consideration and taken the initiative, ploughing money into cyber security. That’s how significant an issue cyber security and the new threats available through the Cloud have become.

risk management is required at all three levels

The evolution of cyber security threats to the new environment means that the threat exists at three different levels

  • the personal
  • the organizational
  • and the nation state or community level.

At each of these levels the consequences can be dramatic and risk management is required at all three levels.

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The rise and rise of the “as-a-service” (XaaS)

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I recently blogged about Unified Communications as a Service (UCaaS) and how its cloud-based communications and collaboration tools can help companies be more productive. The “as-a-service” (XaaS) approach is really at the heart of so much business transformation at the moment and it is fair to say that it is becoming a strategy in its own right. It is creating a whole new paradigm for customers and service providers.

XaaS: what’s new?

In the past we typically used to ship or download physical products as we needed them, but the introduction of cloud computing as a heavyweight enabler has given rise to the XaaS model. The XaaS approach brings with it an ongoing relationship between customer and supplier, in which there is constant communication, regular status updates and a genuine two-way, real-time exchange of information.

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This makes XaaS an attractive approach for customers, they really seem to be buying into it – the managed service nature of the relationship means they have to commit less money up front while enjoying less risk and still keeping up-to-date with the very latest technologies and product developments. Plus companies can also scale up or down, depending on their needs at a given moment in time – another important influencer on costs and another of those flexibility enhancers.

how mobile is helping power the XaaS revolution

So in the same way that the cloud itself has been a disruptive development for conventional IT’s ways of getting things done, so the as-a-service model is also changing the game. It is fair to say that the cloud is effectively the next step in the evolution of the internet, and the cloud is the conduit through which everything will in future be delivered as a service.

The XaaS model is changing everything in that it is both taking over applications and also taking over service delivery channels and basically cutting out the traditional middle man. With mobility becoming the new norm and the standard way of doing things, people can access the services and applications they want no matter where they are. Mobility, mobile device proliferation and the shift to faster mobile broadband connectivity are all helping to accelerate the process.

XaaS going mainstream

Software as a Service (SaaS) was arguably the first area in which the cloud delivery XaaS model found its way into the commercial mainstream, and the sector has gained significant momentum since then. Gartner predicts that the worldwide SaaS market will exceed $22 billion in 2015, almost double its value in 2011.

The benefits that SaaS brings to companies are true of all the other XaaS alternatives, such as Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Storage as a Service, Security as a Service, UCaaS and others. The big data revolution is seeing more organizations look into the possibilities offered by storage as a service – companies are creating more internal and external communications data, more video and so on, which means that storing data securely becomes an increasingly significant legal and compliance issue.

So by outsourcing these service provisions to a qualified expert partner, organizations immediately get lower “Total Cost of Ownership” (TCO) than with traditional, on-premises solutions. Deployment of services and applications is faster and easier which means that companies can reduce OPEX and get new offerings and services to market faster. The initial CAPEX is lower, IT support expenditure is reduced through the XaaS model and scalability is built-in to the proposition. Design obsolescence is also a thing of the past under an XaaS model. So it becomes another major disruptor for suppliers.

Overall people are switching on to the XaaS model because it takes the TCO and converts it from being a concern into something which is more controllable, and which has agreed service levels. Traditionally, IT initiatives were known for suffering from project overruns, where companies didn’t know what they would get at the end of a process which took longer than intended and which of course cost more. Those types of incidents were what cost CIOs their jobs. The XaaS approach removes this risk and while there can be a worry about having less control over the whole, companies have come round to seeing the benefits as outweighing this.

but the network remains key

So while the benefits and reduced risks of the XaaS model are clear, the network backbone is what powers the proposition forward. Cloud services all rely on a robust network to give the reliability that services need and that end-users expect, so as companies make the shift to the XaaS paradigm, they must always think about their networks too. If reliable, high speed connectivity is not available then the user experience declines and the proposition weakens.

innovation acceleration

Perhaps the real proof point of the XaaS model is that it genuinely accelerates innovation. No customer likes deploying something and then finding that a new version of the software, hardware or whatever has come along a few months later and they are already behind the curve. Under the XaaS approach, innovation can occur in real-time, customer feedback can be gathered and acted on immediately, organizations – and their own customer offerings – are able to stay at the cutting edge with minimal effort.

This is where XaaS distinguishes itself from the traditional thinkers who still believe that it’s better to build things themselves – the traditionalists will end up spending a lot more money to be locked into something that could pretty soon be out of date. Open integration environments that encourage application development are flourishing. And through this kind of innovation the smart providers of today are set to kill off the old paradigm by opensourcing this ongoing innovation and new ideas.

This new paradigm, now has a number of competing labels emerging. We will see with increasing frequency XaaS from our industry, no matter which label the industry adopts, the ‘Everything as a Service’ or ‘Anything as a Service’ label. One thing is guaranteed, we will continue to see the rise and rise of the “Everything-as-a-Service” /  “Anything-as-a-Service” (XaaS) model.

Unified Communications as a Service – the third way?

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In my last blog post I wrote about how Technology can be used by ‘disruptors’ to change the competitive landscape and challenge long established segment leaders. In this piece I would like to explore a related technology that can be leveraged to disrupt the current landscape and one that I think is a reality now – Unified Communications as a Service (UCaaS).

UNIFIED COMMUNICATIONS YOU SAID?

The reason I call it a disruptor is that UCaaS is another specific application that is moving into the cloud and having a major impact on the way companies collaborate and communicate.

So what is UC? Unified Communications is an approach to business communication that groups together all the various tools under one umbrella and connects them up, making it easier for company team members to stay in touch. The UC suite typically includes all the communication apps you would expect to find in an average office, including the likes of

  1. voice calling
  2. video conferencing
  3. web conferencing
  4. and instant messenger (IM)

UC is about flexibility. Workers are able to be more productive and effective because they can choose the communication mechanism that works best for them at that time – such as taking a call on a landline, smartphone or tablet device. Bringing all of these ways of communicating together in an integrated format is what UC is all about.

challenges along the way

So UC can genuinely help organizations to see positive impacts on their productivity, worker effectiveness and even staff morale thanks to them being able to do their work more on their own terms. Many companies have attempted to raise productivity through UC and increased collaboration, and different organizations have had varying degrees of success with it.

There are challenges involved however – with the biggest expense being CAPEX, while integration and interoperability can also present problems. Companies must choose whether they want to roll UC out and manage the technology, training and risks themselves or whether they would rather outsource it – which may still require a significant investment upfront for the CAPEX which must be paid up front. It’s a balancing act, and one that causes many companies quite a degree of soul-searching.

“as a service” – the third way

There is a new paradigm that is a reality today and that is Unified Communications as a Service(UCaaS). The cloud continues to change the way that companies work, and it enables us to be more flexible in how we do things. In relation to UC, it means that companies can, rather than having that big initial CAPEX or big PBX, actually use a cloud-hosted service that gives all the benefits and control of an on-premise service. This is a potentially huge benefit for many companies.

Put simply, UCaaS makes Unified Communications and collaboration tools more affordable for all – vital at a time when companies need to reduce costs wherever possible. If you’re looking to manage costs then moving to an OPEX model is very attractive – and UCaaS also means smart outsourcing too. Working with an external partner means having a service level agreement (SLA) in place which covers you in unforeseen circumstances – when many companies have only one or two people responsible for their UC, who could be away on vacation or sick, this kind of safety net is a real advantage.

A further benefit of UCaaS is that it can offer event-based billing as well, meaning companies can offer support at times of greatly increased usage – such as delegates and staff collaborating around an annual conference, for example. The flexibility of UCaaS allows you to offer tools like video conferencing or Web conferencing which you might not otherwise need through the rest of the year.

Cloud – the enabler

One of the other advantages that the Cloud delivers is that of managing transitions of technology, again helping companies to reduce costs. By basing UC tools in the Cloud you don’t need to manage expensive upgrade cycles and you’re able to enjoy all the latest new features and versions as they become available.

What this also means is that companies can better manage the transitions of business models too – relocations, mergers, acquisitions and so on, any big changes to operational routines are more easily supported thanks to the agility of UCaaS. Take an example like mining companies which move operations around to where the next project demand is – starting up and shutting down projects is far easier in the Cloud.

Conclusion

These ideas have been around for quite a while now really, but only now are the service catalogues offering them come to market to make UCaaS a reality. The technology has caught up, meaning that companies can enjoy multi-tenanted Cloud offerings which allow more than one user on a box now. Similarly virtual machines can be had today with a compelling cost versus service proposition. It’s my belief that we are going to being seeing a big shift of people from on-premise UC suites to the cloud version, and adoption of the UC tools themselves is going to continue rising too.

At the end of the day, what UCaaS is about is

  • managing risk
  • cutting costs
  • and increasing collaboration.

By outsourcing your UC needs to a service provider who is an expert in that area you reduce CAPEX risks and the need for costly, long IT equipment recycle periods. You’re not putting all your UC eggs in one basket and get to enjoy the flexibility and agility that comes with the “as a Service” strategy.

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Cloud is growing up and challenging IT and business assumptions

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With the increasing implementation of cloud infrastructure-as-a-service, companies are taking advantage of new benefits, such as increased flexibility, availability and security.

In Australia, businesses have different levels of maturity in terms of cloud consumption. Some customers look for simple, immediate cost savings, whereas more mature customers value the flexibility and operational expenditure (OPEX) characteristics of cloud services which can result in more than just pure cost savings.

Fear of the cloud: data control, regulations and lack of standards

The real business benefits offered by cloud continue to be overlooked by less mature customers. Fear of the unknown continues to be the critical factor in resisting or recognising the necessity of adoption. At the top of the list of these fears are:

  1. losing IT regulation
  2. supplier shut in
  3. data control
  4. cost of migration

Organisations’ lack of knowledge of the power of tools available and an absence of agreed standardsfor control, remain the two key points that must be addressed to ensure mainstream enterprise existence. These standards will also answer questions about interoperability. Currently, the lack of comprehensive interface standards mean that interoperability between cloud platforms built by different providers presents one of the greatest barrier to entry into the cloud computing realm.

Despite fears, cloud grows fast

More and more, enterprises are focusing on the benefits of attractive OPEX models that deliver new business flexibility. They are overcoming the traditional barriers of security and compliance, as illustrated by steadily increasing adoption rates. A recent Frost & Sullivan ICT Outlook Briefing reported that the Asia Pacific cloud market is set to increase by more than 35 per cent in the 2011-16 period, with Australia leading the region with a current 43 per cent adoption rate.

The more mature customers go beyond just productive workloads in the cloud. They incorporate metrics which report on business results, not just cost of technical metrics such as computing power of bandwidth.

A standard cloud uptake model

There is a standard cloud uptake model we see happening in Australia.

  1. in the early stages of cloud adoption with less mature customers, public cloud is used in an ad hoc fashion with widespread virtualisation
  2. as businesses begin to realise the potential benefits, key processes are shifted to the cloud as the IT environment becomes more complex
  3. as businesses harness the potential for innovation and greater agility, whole industries have the ability and opportunity to be transformed

Why is it here to stay?

In the coming years, cloud will become a strategic business issue. Already we see IT becoming imbedded in the business process. The phenomenon of BYOD has become entrenched, and IT departments are being forced to grapple with BYOA. IT buying behaviours will become more complex as decision making spreads beyond the IT department. In fact, IT departments can improve their internal value communication based on business-centric metrics instead of technical metrics to measure the total cost of ownership or cloud computing consumption.

Forrester Consulting has conducted research into the metrics used to evaluate the ROI of cloud services. The research found only the most mature cloud users tie specific projects to business results, and that overwhelmingly there was an immature relationship between IT and the business.

CIO: a changing role

The role of CIOs and IT workers has already shifted from monitoring technology performance to ensuring employees and the wider business network have full access to required services.

Purchasing decisions are no longer strictly based on price and investment, but instead multifaceted consideration of current business demands, developing organisational needs and future flexibility. Big data and the evolving ability to assess business results and deliver specialist reporting is only just being harnessed by the more mature cloud customers, but offers a plethora of insight into business trends and opportunities if harnessed correctly.

Happy ending?

The recognised increase in overall business agility delivered by cloud computing is ensuring mainstream adoption. The smorgasbord that cloud is so well known for, particularly when referring to Infrastructure-as-a-Service, gives IT departments, and particularly CIO’s, the opportunity to carefully tailor and manage services across the organisations preferred domain.

This transition to coordinating IT environments gives CIO’s and other IT staff the ability to improvise and implement business services on demand, controlling and taking advantage of the cloud phenomenon. With Australia leading the transition in Asia Pacific to cloud services, CIOs are now in the perfect position to investigate and optimise business services, ensuring that the constantly changing workplace is reflected in the flexible and adaptable IT infrastructure.

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