Focus Experts Briefing: IT and Business Unite for Cloud Computing

Focus Research October 2010

Focus Research 2010

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Introduction
The appeal of cloud computing is undeniable: Investment is minimal, it frees up IT resources and it affords businesses of all sizes a chance to jump on the cloud bandwagon . Although cloud computing doesnt quite signal the end of todays infrastructure, it can have a ripple effect when rolled out for the first time . As with any new approach, resistance is inevitable and questions are bound to arise . How does the business side align this technology with business goals? What if IT would prefer to maintain control of on-premise systems that are hosted internally? This Experts Briefing leverages the expertise and experience of Focus Experts and Focus Community members, whose guidance can help you see cloud computing from both sides of the fence and ultimately learn how to align cloud computing with business goals, while keeping interdepartmental harmony .

We would like to recognize the contributions of the following Focus Experts to this Experts Briefing: Andrew Baker (http://www .focus .com/profiles/andrew-baker/public/) (see page 6) Benjamin Breeland (http://www .focus .com/profiles/benjamin-breeland/public/) (see page 4) Michael Dortch (http://www .focus .com/profiles/michael-dortch/public/) (see page 7) Michael Krigsman (http://www .focus .com/profiles/michael-krigsman/public/) (see page 3) Timothy Loftus (http://www .focus .com/profiles/timothy-loftus/public/) (see page 4) Lori Salow Marshall (http://www .focus .com/profiles/lori-salow-marshall/public/) (see page 5) James Smith (http://www .focus .com/profiles/james-smith/public/) (see page 5)

Table of Contents

1 Q&A: Does IT Hate the Cloud? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .p . 3 2 Q&A: How Do You Sync a Cloud Rollout with the Business? . . . . . . . . . .p . 6 3 Q&A: Can Cloud Computing Help Unite Business and IT? . . . . . . . . . . . . .p . 7

IT and Business Unite for Cloud Computing

Focus Research 2010

Q&A: Does IT Hate the Cloud?

Are IT departments sabotaging cloud computing solutions?

Some companies have no way of comparing cloud-based and premise-based solutions accurately . Others have IT purchasing processes and policies that simply cannot be adapted to cloud-based alternatives . (Some vendors arent doing enough to make this easier -- when will enterprise purchase and support agreements support cloud- and premise-based solutions equally easily?) Are IT departments hurting their companies abilities to consider, acquire and deploy cloudbased solutions, willfully or otherwise? Michael Dortch, Focus adviser and director of research at Focus.com

Best Answer
This is an interesting and complex question . I think there are three fundamental issues occurring simultaneously: 1 . Some IT organizations do not want to suffer the loss of control that cloud computing brings . Psychologically, there can be a safety blanket mind-set where IT folks feel they have more control when on-premise systems are hosted internally . Perceived lack of control can make IT feel more comfortable with on-premise than cloud . 2 . Many organizations have security policies that dictate the extent to which sensitive data can leave the organization boundary . Certain government, defense, and financial services organizations immediately come to mind . In these situations, IT may appear to undermine cloud initiatives, but in reality are simply adhering to corporate policy . 3 . In some instances, Im sure individual IT workers do sabotage cloud migrations, much as they sabotaged off-shoring in years past . These folks are making a mistake and would be far better off figuring out how they can make themselves more valuable to their organization . Michael Krigsman, Focus adviser and CEO of Asuret Inc.

Additional Answers
Cloud computing is also not a one solution to every scenario proposition . Sabotaging the solution? I wouldnt characterize not immediately seeking a cloud initiative as sabotaging the situation . It does have some pitfalls along with its benefits . Oftentimes the IT departments dont set the policies on purchasing . In my case the policies are set by the CFO and the Purchasing Department . To say, then, that the IT department is the one sabotaging the effort would be improperly labeling the situation . The initial cost to implement is usually very high and that causes many requisition requests to fall on deaf ears even with the higher ROI in the long run . Getting past the initial numbers is what is important to some cases . Robert Baker, systems engineer at SpaceAge Consulting LLC

IT and Business Unite for Cloud Computing

Focus Research 2010

I do not think IT is hurting the business any more than the business hurts itself with the rush to adopt cloud-computing solutions without understanding the nature of the business or cloud solutions . Going to cloud solutions is an evolution not a revolution . Organizations need, at a minimum, a list of business goals and objectives to measure against their current production . If there are holes in the current solutions, the business needs to create clear requirements for meeting these challenges . Only then should one consider cloud-computing solutions . We lost opportunities because the team wanted to position the latest and greatest not-ready-for-prime-time solutions when the tried and true solutions were fine for solving the immediate customer challenge . Cloud computing is an evolution not a revolution . Good IT shops that enable business success will evolve into the cloud solutions that fit . There is no rush . I find this entire discussion regarding cloud computing disruptive to business success too much focus on technology and not enough focus on business requirements . It reminds me of the rush to outsource . Were those savings long term? Or short-sighted? Finally, I think smart integrators drive cloud success . If one creates complete business solutions for companies and removes the standard IT infrastructure and costs, then it becomes a simple choice for a start-up or an established business looking to reduce costs and improve efficiencies . Otherwise, it becomes the equivalent of buying parts to build an automobile to get to the airport when calling a taxi, asking a friend, or getting the bus solves the problem at a fixed rate with no maintenance responsibilities . Benjamin Breeland, Focus expert and enterprise management consultant at CA Technologies

We should not be; our aim is to deliver efficient services to the rest of the business . The day I do myself out of a job is the day Ive automated all our IT needs . We just need to learn to walk up the solution food chain with the new offerings . Stuart Fawcett, IT/IS manager at hSo

Its not sabotage, but many people, including those with IT responsibilities, do not have a clear understanding of what moving services to the cloud really means . I wouldnt move any infrastructure if I wasnt sure what would happen to it either . Cloud service providers have a task there, and they should help their customers with ways to lower the initial implementation costs . In many cases, those are way higher than necessary . Frank Laurijssens, Information security infrastructure designer, ICTIO

If they are, it is because they see the dreaded outsourcing scenario rearing its ugly head again . They are not ignorant and are typically not naive, young folks . They survived outsourcing many years ago and hosting more recently, albeit painfully, and they are wary of new marketing terminology for the same ugly beast . Cloud providers must extol the benefits and what the differences are today . IT folks will listen with an open mind, but wont be fooled . They need to hear about real benefits for the company but wont have them joining the ranks of the unemployed . Timothy R. Loftus, Focus expert and Talented Leader & Managing IT Infrastructure Architect of Free Knowledge Network, LLC

IT and Business Unite for Cloud Computing

Focus Research 2010

Execution of cloud technology is different from adopting a utility-based cloud business model . Security issues aside, vendors are pushing, and IT departments are buying cloud technologies vs . executing cloud business models . Server, storage and virtualization vendors still want IT to buy a box or a license . Traditional service providers who could provide a utility computing environment for their customers have little ability to support usage-based billing and other cloud attributes . IT departments who want to go to the cloud are finding their best bet is to do so on a workload basis vs . a full-scale exodus from the datacenter . Cloud services around email and CRM are low-hanging fruit, but moving that 20 year-old financial application environment into the cloud is not going to happen any time soon . I believe IT departments are not sabotaging the cloud , but rather that traditional IT vendors and service providers are biased towards their historical revenue streams that will be ultimately be disrupted as public cloud solutions become increasingly available . Niche business applications that focus on workflow (like EchoSign for contract signature) or distributed, collaborative services (like Skytap for dev and test) are going to be the short term cloud offerings that can be game-changing for enterprises . Question is - will IT become more of an aggregator of services and a manager of performance requirements and budget thresholds? Add 10-12 niche applications together across an enterprise and IT becomes a service management organization and not a technology team . Lori Salow Marshall, Focus expert and CEO/Founder BizDev of Experts LLC

Some are probably willful, others may be prudent . This is simply the mainframe to client sever argument all over again . Now, its client server to cloud, and people are reacting exactly the same they did twenty years ago . Theyve got a business to run and theyre inundated with conflicting views of cloud computing . Which expert to they turn to? First and foremost they have a business solution to deliver and that should take priority over reviewing new platforms . I suspect the answer to your question when will enterprise purchase and support agreements support cloud- and premise-based solutions equally is when the broader market agrees that both are the same or concludes that cloud is a superior approach to a specific application . Until then, many will take the pioneers get arrows in their backs approach that in the 70s and 80s sounded like: You cant go wrong with IBM . It will be interesting to observe! Right now, there are as many opinions as there solutions and companies who have typically been slow to adopt new technology will continue that position for the foreseeable future . James Smith, Focus expert and CEO of Enterprise Management Group

Read the full conversation: http://www .focus .com/questions/information-technology/are-it-departments-sabotaging-cloud-computing-solutions/

IT and Business Unite for Cloud Computing

Focus Research 2009

Q&A: How Do You Sync a Cloud Rollout with the Business?

How do you align an IT project, i.e. cloud computing, with your business goals?
The alignment of goals discussion is always particularly interesting because of the perception that different members of an organization have concerning how the organization functions . The Information Technology team is supposed to support the overall objectives of the organization just as HR, Finance, Marketing and Sales should . As such, it needs to be in the loop in terms of what the organization is trying to accomplish, so that it can bring its knowledge and insights to bear on the issues . Some organizations, or departments within organizations, bring IT into the loop after making a whole lot of decisions about what they want and who they want it from . They select vendors, equipment and solutions and then drop it as the doorstop of IT to integrate into the environment . In some other organizations, IT essentially isolates itself and deliberately stays of the discussion of what the business is accomplishing . This forces them into realignment mode ever so often (usually at budget season and during some major project) . Both of these approaches and attitudes are counterproductive . It is just as important for the technology team to be constantly in sync with the overall business as it is for Sales and Marketing to be constantly in sync with the overall business . This requires good communication within and across the different teams in an organization, and it requires department leaders to take each other seriously and treat one another with respect . It also requires that the senior management team set the marching orders for the organization in this regard, and put things in place to ensure that such interaction is accomplished . Andrew Baker, Focus expert and director of service operations at SWN Communications Inc.

IT and Business Unite for Cloud Computing

Focus Research 2010

Q&A: Can Cloud Computing Help Unite Business and IT?

Has the integration of cloud computing provided a chance for IT and business sides to come together?
This question is for people who have implemented a cloud computing platform at their organization: Has the integration of cloud computing provided a chance for IT and business sides to come together and work better together at your business? Have you seen a real business value come out of this new relationship? Isaac Dearth

Best Answer
When I began my career as an industry analyst more than 30 years ago, Yankee Group founder Howard Anderson used to love to say that technology empowered good managers and exposed bad ones . A similar dynamic is afoot where cloud computing is concerned, as Crystal alludes to in her response below . Where there was good IT-business alignment and collaboration pre-cloud, IT and business decision-makers are collaborating to determine whether and where specific cloud-based solutions make good business sense . Where such alignment and collaboration were frayed or non-existent, cloud computing simply creates another opportunity for fractiousness and contention . Fortunately, cloud-based solutions are appearing in specific areas that are providing opportunities to improve rather than degrade IT-business alignment and collaboration . One such area is in application creation, as discussed in my Brief featuring TrackVia, at http://focus .com/c/CRN/ . Another is cloud-based server capacity, as discussed in the recently published Focus Experts Guide on the subject, at http://focus .com/c/CP3/ . This question is the beginning of a discussion I expect to see continue at many businesses for some time to come, so thanks for it, Isaac! Michael Dortch, Focus adviser and director of research at Focus.com

Additional Answers
If anything, the use of public cloud solutions by lines-of-business is further straining the relationship between IT and the business side . While LOB are using public cloud solutions, IT is still researching and strategizing . No technology is going to bring the two together if they fail to get on the same page . Bernard Golden addresses the impact of this disconnect in IT Operations: Beware the Cloud Boomerang http://www .cio .com/article/589167/IT_Operations_Beware_the_Cloud_Boomerang Crystal Bedell, technical copywriter at Bedell Communications
Read the full conversation: http://www .focus .com/questions/information-technology/has-integration-cloud-computing-provided-chance-it-and-sides/

IT and Business Unite for Cloud Computing

Focus Research 2009

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IT and Business Unite for Cloud Computing

Focus Research 2010