Cloud Business Featured Article
Cloud Business Decisions in the Hands of Senior Executives, Not ITDecember 05, 2012
By Erin Harrison, Executive Editor, Cloud Computing
As cloud computing becomes more widely adopted among organizations today, the decision to shift to cloud has changed in recent years and is now largely a business decision rather than an IT one.
According to a recent study of 460 IT leaders conducted by Capgemini (News - Alert), one-third (32 percent) of executives said that the IT department is currently the main driver of cloud adoption, however another 45 percent believe that individual business units are ultimately responsible for cloud adoption strategies.
“Clearly, cloud is no longer perceived as an IT-owned technology, but in a relatively short timeframe, its effectiveness as an enabling platform has been recognized and has percolated throughout the business,” the report said.
In terms of adoption trends, organizations are increasingly taking a “careful, step-by-step” progression to cloud maturity, rather than making an all-or-nothing decision – and potentially getting delayed by unavoidable obstacles. Looking at the cloud adoption roadmap, over 80 percent of respondents rated themselves as “maturing” or “close to maturity.”
But just because cloud computing is in more of the hands of the business doesn’t mean it’s run as effectively as possible.
“For example, the board of directors is seen as both a driver (29 percent) and a blocker (28 percent) of cloud initiatives. This suggests that in many cases, “benefiting from the cloud is still being hindered by a lack of appropriate senior level understanding and commitment,” said the report. “It is safe to conclude that by now the benefits of the cloud are clear and widely understood.”
At the same time, the cloud is assuming a great deal of strategic value, Capgemini’s Ron Tolido told Forbes: “The initiative for driving cloud solutions is shifting from the IT department to the business unit as companies focus more on tangible business value.”
Given today’s uncertain economic climate, cost reduction continues to be a major driver of cloud, according to the study.
“As with the business drivers, reducing costs was the most frequently cited by around half of respondents. But close behind was shifting costs from CAPEX to OPEX (News - Alert), and rapid scalability came a close third,” the report said. “Although we called these ‘IT drivers,’ we believe they are well understood and appreciated by business leaders today.”
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Edited by Amanda Ciccatelli
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