The Great Cloud Secret
 

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The Great Cloud Secret Document Transcript

  • 1. The Great Cloud Secret (hint: fastest time to value) Focus Research ©2012 All Rights Reserved
  • 2. The Great Cloud Secret (hint: fastest time to value)When evaluating Cloud, many people make the mistake by comparing it directly to on-promisetechnologies and using descriptions such as Outsourcing, or the shift from capital expenditure tooperational expenditure.Yes, there are some potential savings to be had from shifting to a Cloud model from and on-premisemodel in that regard, but the real ROI comes from agility.In my previous post here on the SAP blog, I mentioned that Cloud represents the fastest time to value.What do I mean by fastest time to value? To answer that you have to go back to basics and look at what ITis here for.My favourite analysis on this is by the Gartner analyst Mark P. McDonald in a blog post:“Understanding IT’s role in the enterprise is complex and incomplete. IT is the subject of great debate assome see it as the source of competitive advantage and others see it as an enabling function. CIOs andIT professionals themselves have a tough time answering the question about IT’s role.“He goes on to define IT’s role (a production function in the enterprise) as:There are two production functions for IT that can be summarized in two words SPEED and SCALE.SPEED: We take strategy plans and turn them into operational performanceIT’s production function is to deliver speed of execution against the company’s strategy and plans.Strategy execution involves change and change requires IT participation. The faster IT is able to executeits processes, deliver results and accelerate strategy execution the better….SCALE: We take operations and increase their capacity and reduce their average costIT’s other production function is to create scale of operation across the enterprise. Scale in this senseis the ability to IT to aggregate activities and deliver greater capacity at a lower average cost. IT createsscale through its infrastructure and operations activities that make the modern enterprise possible. IT isone of two scale functions in the enterprise. The supply chain is the other scale function.”In other words- we need to focus on doing things as fast as possible while lowering the cost to thebusiness of that function.The Great Cloud Secret (hint: fastest time to value) Focus Research ©2012 2
  • 3. If you compare on-premise IT to Cloud purely on a cost basis you’re not looking at the outputs IT needs toachieve, just the inputs.If you start with the end goals in sight then you’re in a much better position to understand why Cloud is sotransformative: it enables IT to do things FAST, which is 50% of what IT should be doing.Just because you could do it, doesn’t mean you should. It’s like getting your taxes in late because youdidn’t want to hire an accountant.We need to stop defining ourselves in what systems we build and instead on what systems we assemblefor the business and what results they deliver.Waiting weeks for servers to be installed and configured, apps installed, customised, firewalls configuredbefore even testing can start is not acceptable when Cloud apps can be provisioned in mere seconds orminutes. Justin Pirie is a leading SaaS and Cloud specialist- he authors an influential blog and runs the largest SaaS community in the world, with over 40,000 members. He is on the EuroCloud and IAMCP UK boards, is the Cloud Strategist at Mimecast, one of the largest European SaaS companies where he helps organisations adopt Cloud successfully. Justin has been in IT over ten years, gravitating towards SaaS over the last five. Before Mimecast, Justin was an Officer at Endeavors Technology, the inventors of Application Virtualisation after running an IT Services company for 7 years.The Great Cloud Secret (hint: fastest time to value) Focus Research ©2012 3