Are you ready for Cloud Computing?


Over the past few years, few technologies have been hyped as Cloud Computing.  According to the pundits and early adopters, CC is transforming the face of corporate IT at the same time as delivering compelling business value.  Simply put, CC is a suite of enterprise-level technologies that enables organizations to draw their computing power and data from a separate and centrally managed pool of compute resources including servers and software licenses. CC has a compelling basket of benefits for firms of all sizes in all industries.  Company’s can significantly reduce IT operating costs and increase server utilization.  Additionally, CC can enable a more agile and scalable computing infrastructure that better aligns IT to business requirements, including reducing new product time to market.  Importantly, CC allows firms to focus on its core mission of delivering goods and servicing customers while outsourcing a big chunk of their IT (read: fixed costs and headaches) to experts.   

Currently, there are many business functions delivered through a cloud, from CRM (salesforce.com) to messaging and collaboration (Google Apps) and high performance computing (Amazon Web Services). Not surprisingly, all the IT heavyweights including IBM, HP, and Microsoft have committed billions of dollars to marketing a plethora of products and services.    No wonder Gartner, an IT research consultancy, named CC the second most important technology focus area for 2010. 

Yet, CC has received a couple of black eyes recently arising from security breaches at Amazon and Sony that impacted millions of users.  And, there remain important challenges to fully exploiting CC’s potential.  Not all first generation initiatives have met expectations.

Given its young age, it is not surprising that CC carries a variety of definitions and connotations.  For the sake of clarity, I use the US Department of Commerce’s National Institute of Standards and Testing definition.  NIST defines 5 characteristics of cloud computing:

  • On-demand, self-service computing – allows business units to secure the resources they need without going through internal IT for servers and licenses;
  • Broad network access – enables application to be deployed in ways the business operates such as mobile and multi-device;
  • Rapid resource elasticity – provides for quick resource scalability or downsizing depending on computing needs;
  • Compute resource pooling – enables computing resources to be pooled to serve multiple consumers;
  • Measured service – allows IT usage to be measured like a utility and charged back to users according to demand.

How do managers determine whether this technology is right for their business?  Our firm has developed a quick and dirty checklist to test a company’s cloud readiness: 

  1. Are your revenue-driving business applications hampered by inadequate computing power?
  2. Would significantly quicker resource availability enable you to reduce time to value with new products and key operational initiatives? 
  3. Are your operating units and managers always fighting for more IT resources?  
  4. Is your business environment characterized by unexpected surges in demand? 
  5. Is IT redundancy an important risk mitigation strategy? 
  6. Do new or short duration business projects have difficulty “making the cut” for IT priority? 
  7. Are server, software license and data center costs rapidly out-pacing profit growth? 
  8. Are you frustrated with the flexibility and responsiveness of your enterprise IT infrastructure?

If you answered yes to only 4 of the above questions, your business is being seriously impacted by IT constraints and higher than necessary operating, hardware and software costs.  A compelling business case for CC exists and a pilot program should be investigated as soon as possible.

For more information on our services and work, please visit the Quanta Consulting Inc. web site.

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3 comments so far

  1. […] value, many firms have taken a cautious approach to deploying applications in the cloud.  And, it’s not for lack of interest or intent.  The current economic and regulatory climate has squeezed IT budgets and heightened sensitivity […]

  2. […] change, cloud computing, IT, Organizational Performance, Practices, Process, Structure, Univa | Many organizations we work with are diving head first into the latest IT game changer, cloud computing.  While a comprehensive technical and financial […]

  3. […] Many organizations are diving head first into the latest IT game changer, cloud computing (CC).  While a comprehensive technical and […]


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