Cloud Computing: The Great Disruptor
January 25, 2012
In a few short years, cloud computing has gone from a curiosity that most corporate IT departments wouldn’t touch or trust to one that’s being tested and deployed in more and more enterprises.
Led by applications like CRM, payroll and productivity apps, cloud computing has evolved to the point where it’s become part of the enterprise IT conversation — and analysts forecast strong growth in cloud services for years to come. Gartner recently predicted that more than half of Global 1000 companies will have stored sensitive customer data in the public cloud by the end of 2016…
To keep you on top of this critical trend, the editors of the IT Business Edge Network have compiled their views on where cloud computing is today, where it may be headed, and how it could forever alter the enterprise IT landscape.
As James Maguire, senior managing editor of Datamation, put it, "Cloud computing is the great disruptor, in both the technology field and in business in general. … When services are delivered remotely, does the brand name of the vendor still matter as much? Won’t this ultimately work against the larger, entrenched vendors? And in terms of business in general, when a smaller company can rent a competitive IT infrastructure on an as-needed, scalable basis, this gives them a tremendous competitive edge against larger businesses."
Sean Michael Kerner, senior editor of InternetNews.com, said the cloud "solves cost and consolidation issues in a way that no other IT architecture before has ever done."
Not surprisingly, small businesses are leading the way to the cloud. Small Business Computing editor Lauren Simonds predicts that the cloud, "imperfect as it is, will become the new normal for small business in 2012. Pressure’s on to compete, and SMBs that do not have the resources (i.e., people, budget and time) can be competitive by taking advantage of cloud applications."
The promise of an instant, pay-as-you-go IT infrastructure could also lead to more "accidental entrepreneurs," said Simonds, a thought echoed by Allen Bernard, managing editor of Enterprise Networking Planet and CIO Update.
"The cloud, like the Web, will make becoming your own boss easier, cheaper and more manageable than ever before," said Bernard.
But some ITBE Network editors still see some hesitance to adopt public cloud computing among larger enterprises. Amy Newman, senior managing editor of ServerWatch, InfoStor and Enterprise Storage Forum, sees enterprises opting for the cloud computing model — within their firewalls.
"Most of the cloud talk and momentum I see is around private cloud," said Newman. "When I query vendors on public vs. private, the answer is nearly always private cloud. For consumers and SMBs not constrained by regulation and security requirements, the public cloud will likely see much more use. Perhaps a Fortune 1000 or largish enterprise would sign up for Azure or EC2 for a departmental project, but I could see them turning to a VM in their private cloud just as easily."
While enterprises are understandably reluctant to turn their IT infrastructures over to a third party, they’ve become more willing to turn some critical applications and data over to cloud vendors.
Ann All, managing editor of Enterprise Apps Today, sees "an increasing comfort level from organizations willing to consider moving key enterprise apps to the cloud. Oracle and even Salesforce seem to be moving to offer a full suite of cloud-based software rather than isolated apps to their customers."
All sees the cloud ERP market catching on, with Workday, Plex, NetSuite and Oracle among the vendors to keep an eye on.
The booming growth of mobile applications could also be a boon for cloud computing — what better place to host complex mobile applications and data?
The Changing IT Department
The idea of IT as a utility, purchased like electricity over a grid, seems a long way off, but IT departments could begin to change as they manage public, private and hybrid cloud deployments, said Kachina Shaw, managing editor of IT Business Edge.
"This leads to changes in roles within the IT department, with CIOs and directors managing changing staff assignments and also managing expectations from the business," said Shaw. "They’ll be finding that level of centralization that works for their company as vendors are selling to business units left and right. And systems integrators may see increased visibility if they can demonstrate value in helping to manage these shifts."
But don’t expect dramatic change just yet.
"IT may morph into highly specialized project and vendor management organizations at some point in the distant future," said Bernard. "But there is just too much sunk cost right now for IT to be rolled up by cloud vendors."