Navigating the Transition to Managed IT with Cloud Infrastructure

Gone are the days where IT could operate as a siloed business unit. Today, IT is challenged to not only facilitate, but drive business objectives, and deliver faster, more agile service. This is due to factors both in and outside of IT jurisdiction, all of which will be explored in this article. 

Factors Transforming IT 

Widespread adoption of cloud-based infrastructure is changing the way IT operates – it is no longer weighed down by inflexible on-premises hardware. Accordingly, IT departments are expected to deliver service faster, quickly adapt to changing objectives, and work towards automation. Changing expectations of IT are largely due to an overall shift in the pace at which the business sector operates. With an anytime, anywhere approach to productivity, changes can happen quickly. 

As a result of the two aforementioned factors – cloud infrastructure adoption and the current pace of the business landscape – IT is more centrally involved in Line of Business (LOB) today.

When cloud technology started to take hold in the business sector, we often saw line of business units adopt cloud technologies outside of IT oversight, in a phenomenon that was dubbed "shadow IT." This trend showcases the central role that cloud can play in LOB functions. Today, it’s common to see IT departments have a reclaimed stake in cloud infrastructure. Though cloud computing is back in the hands of IT, it’s led to an indelible shift in the way it operates. 

What is Agile IT? 

In a white paper titled, "Navigating the Transition to Managed IT", Techaisle summarizes the above phenomena, and how IT should address them, with the term "agile IT." Businesses that have kept pace with recent shifts have been able to leverage cloud infrastructure as a strategic advantage. Agility, as it’s referred to here, has helped many companies advance their competition. Meanwhile, their competition is left in the dust, likely aspiring to a more agile IT model, with cloud playing an integral role. 

But, how is that accomplished today? 

How Cloud is Used Today 

Companies looking to adopt a more agile approach to IT can strategically integrate key technologies and technology applications. The advantage of cloud adoption today (as compared to early adopters of cloud) is the ability to benchmark and see how other businesses have maximized the benefits of cloud infrastructure.    

Techaisle surveyed 360 midmarket IT managers about their use of cloud infrastructure and found that: 

• 50% use cloud and plan to continue to use cloud for IT infrastructure,
• 39% use cloud for non-core processes and applications, and
• 35% implement cloud for core processes and applications. 

This demonstrates that cloud adoption widespread, but that there is a trend toward integration of cloud into core business applications. Techaisle deemed the 35% of surveyed companies that are using cloud today for core business applications a "surprisingly high figure." That is because companies are often hesitant (understandably) to change or update central business applications. 

Advantages of Cloud Adoption 

Companies that use cloud adoption to their advantage stand to gain a number of benefits and competitive advantages. Techaisle also studied this trend among midmarket companies and found that there are a number of top and bottom-line benefits that can result from cloud adoption: 

Top-line Cloud Benefits

• Better and faster access to data and information (reported by 39% of respondents)
• Increased sales/revenue (reported by 30% of respondents)
• Improved customer satisfaction (reported by 18% of respondents)
• Ability to introduce new products/services faster (reported by 9% of respondents)
• Enabling mobility (reported by 5% of respondents) 

Bottom-line Cloud Benefits

• Lower IT costs (reported by 28% of respondents)
• Operational savings (reported by 22% of respondents)
• Standardization of processes and/or systems (reported by 17% of respondents)
• Increased flexibility in application development (reported by 12% of respondents)
• Less reliance on IT staff (reported by 11% of respondents)
• Other bottom-line benefits (reported by 10% of respondents) 

Barriers to Adoption 

On the flip side, many companies have faced cloud adoption challenges. If cloud adoption strategy is not formulated properly, cloud migration projects can be challenged or deferred. According to Techaisle, the challenges most frequently faced by mid-market companies are:

• Developing a business case for cloud and/or getting buy-in from stakeholders.
• Fragmentation across private cloud, multiple public clouds, and on-premises infrastructure.
• Ensuring integrity of data and processes.
• Deciding between public, private or hybrid.
• Meeting security needs. 

How to Overcome Cloud Challenges and Leverage Agile Cloud Strategy 

Widespread cloud adoption, fast-paced corporate environments, and direct integration of IT into various LOB have changed the role of IT. To adapt and thrive in a changing environment, companies can leverage cloud infrastructure as a competitive advantage by developing what Techaisle terms an "agile cloud" strategy. 

To explore how this is taking hold in the mid-market, Techaisle’s research on current cloud adoption trends found that more companies are using cloud for IT infrastructure, with a minority leveraging cloud for non-core or core processes and applications. However, this was still deemed a higher than expected percentage. With this come several benefits that have resulted including improved data access and reduced IT costs. However, many companies have faced cloud adoption barriers including obtaining buy-in from stakeholders or fragmentation between disparate platforms. 

What’s the missing link to help companies achieve an agile cloud strategy, maximize the benefits of cloud adoption, and overcome cloud adoption barriers? Cloud service providers can work alongside these organizations to help develop a customized strategy that will produce the maximum impact from a cloud solution. Like any paradigm shift, agile-cloud strategy requires stepping outside of standard operating procedure. Partnering with a 3^rd party, who can help management and IT adapt and leverage technology as a strategic advantage, can significantly expedite agile cloud initiatives, with those who take advantage standing to gain quite a bit of ground against their competition.

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About the Author

David Graffia has over 20 years of channel experience in the areas of IT sales and consulting.  As VP of Sales at dinCloud, David establishes and builds relationships and partnerships with some of the industry’s largest global aggregators and Value Added Resellers (VARs). Follow @dinCloud on Twitter.

_{*This article is based on Techaisle’s white paper "Agile Cloud: Navigating the Transition to Managed IT," produced in partnership with dinCloud.}