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The Risk Reward of Managing Cloud Sourcing for CIOs Print E-mail
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By Sonny Garrowitz

 

Gartner Research cautions CIOs about facing the risks involved in Cloud sourcing and managing those risks.  In a collection of research from Gartner, topics covered include:

IT OutSourcing

Cloud Computing 

IT Risk Management

Sourcing Strategies

Contract Development

Vendor Risk Management

 

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In this collection of research, a fairly complete accounting is done of Cloud Sourcing and it tries to examine the pluses and minuses out there for CIOs, while weighing the benefits and risks of utilizing cloud services. According to Frank Ridder, research 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.”

In the end, Gartner indicates Cloud computing is indeed the way of the future for most CIOs and some of the findings are revealing both in scope of Cloud Services influence on IT and in the nature of the way the Cloud will shape the future of IT:

-      Cloud computing will influence a faster acceptance of Open Source Software and Younger Talent will be needed within IT Depts. to work on newer solutions.

-    Certain Enterprise functions will be outsourced in the new world of cloud computing… • Enterprise social networks• Next-gen mobile apps• Multi-enterprise collaborative services• Social intelligence apps.

-    Leading accelerating factors for cloud:• Client/server, on-premise-based license sales in Western markets still anemic - Major ongoing supply-side consolidation - Service models no longer “lunatic fringe”

-    Certain key characteristics of “as-a-service” cloud technologies will grow in time: • Pay as you go/use• Turn on/turn off as you wish• Multi-tenant and not simply an outsourcing of apps.

-    Cloud computing may elevate the leadership profile of the CIO.  Especially since, it requires more managing and less back end work.

$112 billion is what enterprises will spend over the next six years cumulatively on cloud-related technologies such as SaaS, PaaS and Iaas.

 




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