Bringing Cloud Computing Down to Earth

By turning to cloud computing for certain technology needs, instead of owning and managing all IT systems, companies have the ability to free up resources to focus on strategic business initiatives—helping them to better serve customers, improve business performance and win market share. It shifts the burden of managing IT and business processes away from companies and allows them to focus on their core business. Specifically, companies that have migrated to cloud computing technologies have reported it:

• Reduces up-front and ongoing costs
• Provides greater flexibility using a pay as you go
• pricing model
• Allows companies to react more quickly to market conditions
• Gives the ability to scale to meet changing
• business needs
• Simplifies employee use
• Provides better access to the latest technologies

As consultants, we are in a unique position to advise our clients—companies that trust our services already—on how to get started with cloud computing. While companies are concerned about security and loss of control over data and systems, IT consultants can help build a level of trust with companies that cloud computing vendors may not be able to achieve. We can become that trusted advisor for navigating the cloud and a crucial resource for companies looking at new technology options to reduce costs and increase efficiency.

Bring Clarity out of Complexity

Companies need to know what cloud computing is, what it does and what it offers. Cloud computing is an umbrella term that encompasses many types of services, including Software-as-a-Service. Avanade defines cloud computing as enabling and delivering computing services—compute power, data storage, network bandwidth and application software—over a network on an as-needed basis. However, the definition of cloud varies depending on the company and the vendor. The first step is to work with your clients to define what cloud means to them.

There is a perception that IT customers will save on infrastructure, licensing and maintenance costs. That's true. But, companies also must consider the impact such a move will have on the organization as a whole. For example, security and access methods may need to change. Information and data that used to be locally accessible offline may now only be available online. Regulatory, compliance and privacy issues with remotely distributed data need to be understood and rationalized. But, these aren't new concerns for enterprise applications—just areas that need to be addressed when considering a cloud-based computing model.

Assess the Business Value Versus Business Needs

Every company must decide if cloud computing will serve its needs. In order to do that, they must evaluate the potential business value it offers and the challenges it involves. What's most important to them? Is it costs? Control?
Companies must identify what technology investment they require to realize their business objectives for the long-term while managing through short-term down cycles. For example, consider companies that manufacture products as commodities. They require minimal research and development, and involve little proprietary knowledge.

One product operates in much the same way as any other. So, outsourcing to a contract manufacturer involves low risk. But, a pharmaceutical company, which has highly sensitive intellectual property, faces tremendous risk with outsourcing. The difference here is how much control a company requires over its information. Companies need to consider what information to share in the cloud and what needs to remain in-house based on their business needs.

Remember, the journey to cloud is an evolution. It's not an all-or-nothing proposition. A company can vary its approach to cloud computing depending on its business needs and its comfort level when it comes to concerns around security and privacy. Unlike on-premise technology, companies can speedily tap cloud services and rapidly change the use of those services. For example, in the case of quickly needing additional server resources, companies can procure what they need from a cloud provider. When those resources are no longer needed, steps can be taken to discontinue using them.

The best approach to addressing concerns while realizing the benefits is to begin experimenting and developing proof-of-concepts using cloud solutions. This achieves many goals:

• Establishes confidence in the cloud provider;
• Creates an understanding of service level and limitations;
• And, if successful, becomes a stepping stone.