According to recent research from Gartner, the
CIOs should be prepared to manage inherent risks and unexpected costs
during the cloud computing technology revolution. The research examines
key issues driving cloud adoption at most organizations with the CIO
in mind. The research tries to separate fact from fiction with respect
to the adoption and implementation of cloud computing.
Gartner concludes that cloud computing is,
indeed, the future. “The hype around cloud computing services has
increased interest, as well as caution, for CIOs trying to determine
where, when and if cloud services can provide valuable outcomes for
their businesses," says Frank Ridder, research vice president at
Gartner. "Cloud computing is driving discontinuity that introduces
exciting opportunities and costly challenges. Organizations need to
understand these changes and develop realistic cloud sourcing
strategies and contracts that can reduce risk."
The following are a few of the highlights from Gartner's recent research:
1. Projected enterprise spending on
cloud is estimated at $112 billion during the next six years. This
includes cloud-related technologies such as SaaS, PaaS and Iaas.
2. Some of the key characteristics of “as-a-service” cloud
technologies include Pay as you go/use, Turn on/turn off as you wish,
Multi-tenant and not simply an outsourcing of apps.
3. Cloud computing may elevate the leadership profile of the CIO.
This is mostly because it requires more steering and diligence in
guiding the company in use of the cloud within the organization.
4. Some of the main causes that will accelerate cloud adoption within
the organization include: Client/server, on-premise-based license
sales in Western markets are still relatively anemic, Major ongoing
supply-side consolidation, and service models no longer outside the
mainstream of generally accepted computing.
5. Most probable enterprise functions suitable for outsource to the
cloud include: Enterprise social networks, Next generation mobile apps,
Multi-enterprise collaborative services, and Social intelligence
6. The overall impact of cloud computing will have the following
effect on the enterprise: projects will be smaller in nature and shorter
in duration, Open source and lower-cost proprietary development tools
will be extensively used, and younger talent working with newer tools
will be the development trend.
These findings are confirmed by another recent Gartner study, “3 percent of CIOs have the
majority of IT running in the cloud or on SaaS technologies, but over
the next four years CIOs expect this number to increase to 43 percent..”
Time to get on board if you are the CIO and Cloud Computing makes sense for your organization, better just be careful which cloud vendor you choose, service level agreements are not always met, just ask some Amazon Cloud Services customers.