Leveraging the Cloud Marketplace
to Mitigate Risks, Costs and Complexities.
If you are a Chief Information Officer (CIO), you know transitioning to the cloud is a very large and risky project. Though your cloud strategy maybe part of your reference architecture, you may still continue to struggle to assess how the cloud actually fits into the larger corporate business model. Further, it is a daunting task to assess the cloud marketplace for vendors that are a good fit. Additionally, reducing operational costs during the cloud transition will be difficult especially if you have adopted a ‘cloud first’ mindset. Expenses will continue to grow in both the private data center and in the cloud.
This book may be able to help the CIO change her role to that of a cloud broker, serving all corporate departments, suppliers and customers. Developing a cloud managed service adds to the CIO’s portfolio. This book can also assist the CIO with cloud vendor selection, vendor contracts and service level agreements as it assists with a cloud implementation for all corporate departments. A cloud broker strategy will help to avoid the CIO from being left behind.
If you make a living as a Channel Reseller or Cloud Solution Company selling information technology products & services, then you know how difficult it is to sell into an environment that puts the purchaser at risk and will likely not reach a positive return on investment for an extended period of time. Selling into a marketplace that is constantly contracting and expanding is difficult. To dampen risks and complexity you clearly will want to understand the cloud marketplace.
If you are a Chief Financial Officer or otherwise responsible for balancing the books and addressing business challenges, then a few items of concern exist:
- Changing cost management methods from a capital intensive (capex) model to the cloud’s operating cost (opex) subscription schema.
- Living in two worlds (private data center and the cloud) will increase cost.Transitioning an entire information technology operation from a privately owned platform to a shared public model, is a significant challenge and change in culture. For the average size data center operation, the transition will take 5 to 10 years. At a minimum, it certainly is a multiyear endeavor, and the size and difficulty continues to grow each day. It is difficult to estimate the percent of corporate IT data centers that will have moved entirely to the cloud during the next few years. At a time when business must cut costs, the cloud will actually increase them until all operations reside in the cloud.
- The rate of cloud spend increases are already outpacing that of any other category of the IT budget! So, monitoring the expenditures and spending it wisely makes sense!
- Regardless how the cloud adoption occurs, things are going to become more complex and subsequently risker. And these increases will exist until the transition is complete.
If you are a Chief Executive Officer or otherwise set strategic direction, then developing a strong sense of the cloud’s true value and direction will help you make informed decisions and improve management visibility. Assessing potential cloud partners that can help sell products and services will assist to set a competitive differentiation. Knowledge of the cloud’s strategic value will help ensure the executive team and CIO maintain an application centric perspective (one that which produces corporate value more quickly).