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10 Reasons Why Cloud Computing Will Assist with Recovery and Growth (Reason #7)

Point Your Company’s IT in the Same Direction the Industry is Moving

Cloud Computing is a reality at all levels of the IT ecosystem and it’s very difficult to argue that its growth is going to slow down anytime soon.  the economics of the Cloud are just too powerful.

It’s well documented the “value proposition” that the end user clients realizes in migration to the Cloud.  Most analyst report 50%-70% saving over traditional premise based IT solutions.  What are not so widely reported are the economic benefits to the industry that supplies those solutions.

From the manufacturers to the vendors that install and support solutions, sales margins are returning to before economic downturn levels via Cloud sales.  In turn, most IT manufacturers and solution providers top priority going forward is the development of their own Cloud Strategy.  Solution providers are turning their attention to making products that are Cloud ready and focusing their product development to appear as a Cloud solution first.

Technical professionals are seeing the handwriting on the wall as well.  Top paying jobs within IT are new related to the Cloud and Software Development.  These are two areas of growth…growth that occurred even in the current economic downturn.

The Cloud and Staying Relevant

The importance of developing a Cloud Strategy for your company includes being able to attract or keep high quality IT professionals.  Whether these scary smart IT people are of your own staff or professional partners, the Cloud is what has their attention and assures them a solid career long-term.  The IT “herd” is moving…and it’s moving towards the Cloud.

As the nature of the IT professional within the Enterprise migrates to a role of development offering greater value for the business, the Cloud allows for this transition and the return to value creation of IT within the Enterprise.

10 Reasons Why Cloud Computing Will Assist with Growth & Recovery (Reason # 6)

An Environment of Constant Change Demands a New IT Strategy

In a recent Pricewaterhouse Coopers survey of 1,150 business executives, seventy six percent (76%) of those polled said that their ability to adapt to change is a key source of Competitive Advantage.  Strategic Agility is necessary as companies require the ability to pivot quickly and address new threats and opportunities…it is the difference between success and failure in today’s economy. As Professor John Wells wrote in a Harvard Business Review article, “Organizations that want to excel in an ever-changing marketplace need to foster and maintain Strategic Agility”, today’s business environment is  requiring business owners and managers to investigate new markets for growth.  As the economy continues to trend “close to flat”, businesses must move beyond their existing markets and into others to find growth.

Business models with high fixed cost are much riskier than they used to be and it limits the opportunity for discovery within new markets. For IT within the enterprise, the legacy model of investing large sums of capital into fixed cost premise based IT solutions can play a part in restricting agility through inflexible systems unable to respond, up or down, to a change in the business need.

Alternatively, today’s economic environment requires technology that support and empowers a flexible operating model that lowers risk and removes technical barriers as the business explores new markets.

An IT Strategy that Supports Agility

A solid Cloud Strategy allows the business to transfer high risk, high ticket technology investments to highly focused and specialized Cloud Service Providers.  The very nature of the Cloud as a Computing Utility allows the company to scale-up or scale-down on demand and in the moment…as required.  By offloading all the routine parts of technology to the CSP, a company can focus its internal IT resources to work in line with business managers as they work to enter new markets necessary for growth.

As the “Pace of Change” within IT itself is moving at an ever faster rate, service life of the “boxes” and their operating systems  are becoming obsolete before being fully depreciated or sometimes before being fully deployed.  Therefore, the Cloud not only offers agility for the business as a whole, but allows for agility for IT itself as it works to keep existing systems moving forward while managing the need for change associated with business growth.

Monday January 21st please read (Reason #7 Point Your Company’s IT in the Same Direction the Industry is Moving”  

10 Reasons Why Cloud Computing Will Assist with Recovery and Growth (Reason #5)

The Crystal Ball and Bigger Fish

Simply put, every business leader and planner, at some point, ask themselves the common questions of what lies ahead and how do we prepare?  How do we minimize risk while at the same time seek out and capitalize on opportunity.  In the process of leading and planning for the organization we look for indicators that provide insights that will guide our future course.  Within IT, these indicators are often provided by industry experts and analyst that have conducted extensive surveys highlighting areas of focus and path.  In a sense, these surveys can become an IT “Crystal Ball” as they are reviewed for logic and trending.

As we analyze Top Priorities for the coming year, the details within these surveys, without exception, highlight the importance that Cloud Computing will play within business IT.  In fact, four of the most common Top Ten It initiative directly relate to the power of the Cloud  and have the below in common:

  • Simplify IT and Transform your Spending:  Kick the 80/20 Budget Habit
  • Future Proof your IT Architecture and Become Strategically Agile
  • Take Advantage of the Cloud in Order to Provide Catalyst Business Transformational Activity
  • IT Leadership to Speed Innovation Into the Business Unit to Drive Revenues
While other priorities and potentially “Bigger Fish” within the Top 10 are actually empowered by the Cloud through liberation of resources:
  • Social Revolution:  Social Media, Multiple Layers of Contact
  • Mobile Worker and BYOD (Bring your own Device) will need significant focus for performance and security as Tablets and Smarterphones will have more and more business conducted over the Internet
  • Transform Big Data in Big Insights, Big Visions and Big Developing Opportunities
The Cloud provides an immediate path that work for the future as well as in the future.  The IT Industry has validated the Cloud as a necessary component for every business go forward business strategy.
Thursday January 17th please read (Reason #6 An Environment of Constant Change Demands a New IT Strategy)