10 Reasons Why Cloud Computing Will Assist with Growth and Recovery (Reason #1)

The Timing is Right for Cloud Computing and the Economic Realities of the
“New Normal”

A great portion of the debate during the 2012 Presidential Election centered on Economic Recovery.  Each candidate attempted to line out how their plan could reverse trends currently defining our economic environment.  The heat of the debate was certainly an indicator that Economic Recovery is one of the central issues of our time.

Now with the election done, inauguration right around the corner and the opportunities of 2013 stretching out in front of us, American Business Leaders, large and small, know that it ultimately up to them to get this economy moving in the right direction.  It’s always been that way.  Politicians can line up to take the credit when recovery occurs, while Business Leaders quietly make it happen as they deal with their own sets of realities specific to their business sector.

Between now and the inauguration I’ll present 10 Reasons why Cloud Computing Should be Part of a Company’s IT Strategy for growth and recovery.  As suggested in the title above, the timing is right.

The New Normal Makes the Timing Right
The realities of operating a business in today’s economy demands agility and openness to new and better ways of doing things.  Most economists predict that the business climate remains uncertain as the enterprise reacts to Federal Budget Policy changes including taxes.  Tight capital markets, down corporate investments, slowing exports and down productivity provide indicators that predict continued retarded growth trajectories.  With recession fresh in the memory of business and the chance of its return not out of the question, Business Leaders must pursue opportunities to operate effectively in an economy that many are defining with the disarmingly benign term the “New Normal”.

It is this “New Normal” that makes the timing right for the Cloud.  Cloud Computing offers business one of the few opportunities to lower cost, ramp agility, overcome deferred maintenance or investments, position for new markets without significant risk, align budgets with current business conditions, increase reliability and accomplish all of this with no capital outlay.

Components of the “New Normal” for IT

  • Flat Budgets while at the same time necessary increase in business demands, in other words do a whole lot more with a whole lost less.
  • For growth, business needs to explore new markets without being limited by the capital burden of IT build out.  Being flexible to give a new market a try, without the risk of capital spend upfront.
  • The typical Capital Budget Spending commonly called the “Spending Trap” becomes the “Competitive Performance Trap”.  If a company continues to pour precious IT dollars into internal maintenance and status quo, then it will loose the marketplace.
  • IT must become the provider of services rather than infrastructure.
  • IT as a revenue generator and not a cost center.
  • Continued disruption and Change

A solid Cloud Strategy has proven to work well in allowing businesses to focus on what matters most, their customers, processes and the employees who nurture them.  By reducing dependencies on internal infrastructure and capital expenditure that go along with the infrastructure, the Cloud Services customer is liberated to respond to the current economic conditions and needs of their business without the usual limitations of their old fixed cost data center and systems.  The variable cost operating model reduces financial risk and helps management of both the top and bottom line even as business conditions change.

Friday, January 11th will be reason #2… “The Cloud is Key to Competitive Advantage”





Leave a Reply

You must be logged in to post a comment.