Transforming Enterprise IT through the cloud
Cloud technologies offer several benefits. With solutions that are quick to adopt, always accessible and at extreme scale to the capex-to opex benefit that the CFO likes, clouds have come of age. In the coming years, the IT organization is going to increasingly see the Cloud as a normal way to consume software, hardware and services. Clouds are transformational. Several companies today are already enjoying a competitive business advantage as opposed to their competition by being early adopters of this transformational paradigm. Today, however, we hear similar questions on near term and long term adoption from IT leaders, the summary of them being as follows-
- Where do I get started?
- What are the quick wins?
- What should we be doing in the next 3 yrs?
I have tried to address some of these common questions as below. These can be thought of as basic transformational patterns and a strategy for cloud adoption within the enterprise
- Start with Software as a Service (SaaS)- explore ready to use solutions in key areas such as CRM, HR and IT Service Management. Some of the SaaS solutions such as Salesforce, Workday and ServiceNow have been in existence for some time now and deploy proven engagement models, so these will be quick wins to consider. Pick functionality, an app and a suitable sized footprint, so as to have a project scope that can create a real organizational level impact. From a time to market perspective SaaS can arguably be the quickest way to attain the benefits of cloud.
- Explore the private cloud- Take virtualization to the next level by identifying an impactful area within the organization to start a private cloud project. One example with an immediate benefit is a way to enable application development teams to automate the request of development and test environments. Getting this done through a service catalog front end through to a private cloud back end, can cut provisioning times by 50% or more with an added benefit of freeing resources to focus on providing support to production environments. There are different product architectures to consider with pros and cons that are beyond the scope of this note- choose one that works for the organization and get going.
- Explore Data Center and Infrastructure consolidation- Many large Fortune 500 organizations today have to deal with equipment sprawl. The issue with sprawl can manifest itself from technology rooms and closets into co-located space to even entire data centers. This can deal with the full stack of IT equipment from servers, network switches, storage devices to even desktops. Private clouds can be used as a vehicle to consolidate, reduce footprint and increase overall levels of control and capacity of this infrastructure. An added benefit can be in terms of higher performance, lower energy costs and replacement of obsolete equipment.
- Identify specific public cloud use cases- Depending on the business, some areas can benefit from adopting public clouds. For e.g.- Requiring a large amount of computing horsepower for a limited duration to do data analytics is a requirement for organizations in the pharmaceutical, healthcare, and financial industries. This is a challenging use case for traditional IT as this is capital and resource inefficient. Public clouds are the perfect answer to these types of workloads. The business unit can pay for what they use and does not get limited by the equipment available in-house.
- Create a multi-year roadmap for expansion - These initiatives are only the beginning. IT leaders need to create a 3 year roadmap that plans how these initiatives can be expanded to their fullest potential within the organization. Enabling a strong project management practice and a proven project team will go a long way to ensuring success during execution. Create a financial cost- benefit analysis for each of these areas and ensure a positive Net Present Value (NPV) case for each one. Identify what partners bring to the table that is proven, yet unique to the cloud solution at hand. Go with the base assumption that in spite of replacements of some legacy tools and solutions, these Cloud initiatives will more or less continue alongside current in-house IT and management practices.
In summary, it is important to have a pragmatic view. Cloud is not the silver bullet that will solve all IT problems. And neither will an organization automatically attain the promised benefits. No two organizations are alike, even those that are in the same industry and hence understanding what to do and which steps to take first will put IT on a course to being 'In the cloud'.