Cloud Computing… Technical Decision or Business Decision?

That is the question that many organizations are asking themselves as Cloud Computing and Infrastructure as a Service (IaaS) continues to evolve and to grow exponentially.  In today’s environment, the decision to adopt Cloud Computing is primarily a business (financial and operational) decision. Once the business need for Cloud has been identified, then the process of making sure the solution will work technically can begin.

The main reason for this is that with the advent of Virtualization and mainstream adoption of Virtualization across all segments of the market, Cloud Computing is not as much a change in technology as it is a change in the delivery method of existing technology.  In other words, IaaS is Virtualization at its core, purchased on an as-you-go consumption basis, with the IT hardware, maintenance, and capital risk shifted away from the customer and onto the Cloud Service Provider.  In a true IaaS Cloud-Computing environment, the management of applications and data can and does remain with the internal IT Organization.  

Arguably in the early stages of Cloud Computing, the decision process was purely a technical one.  Will our applications work in the cloud?  Do we have the right network and security to adopt Cloud Computing?  The questions were many, but almost always began from a technical perspective.

Today, this discussion is as likely to take place with a CFO as it is IT Leadership, and many in a position of financial leadership have come to this same conclusion.