How cloud adoption is changing the business landscape

A 2013 IBM survey shows that the cloud’s strategic importance to decision-makers, such as CEOs, CMOs, CFOs, HR directors, and procurement executives, is poised to double from 34 percent to 72 percent, vaulting over their IT counterparts at 58 percent.

The survey found that one out of five organizations is ahead of the curve on cloud adoption.  Moreover, they are achieving a competitive advantage by using cloud-based platforms, and not just cutting costs and driving efficiency through cloud computing.

The results of this survey are not surprising.  Business leadership drives much of the growth around cloud computing, demanding that IT both consider and implement this technology. They see the potential for this technology to be strategic, much like the growth of the Web many years ago that changed the face of many businesses. Remember, it was business units, not IT, that drove Web adoption and related functions like e-commerce.

A few key trends to consider when it comes to cloud computing and business include:

1) The benefit is more to the strategic value of this technology than to operational efficiency.  Most businesses get more benefits from the agility and time-to-market aspects of cloud computing then the operational efficiencies, such as resource reduction through sharing and consolidation.

2) Business users are more likely to accept the use of cloud computing than many in IT.  While IT certainly drives most of the adoption of cloud computing, those not in the IT roles are typically huge fans of “the cloud.”  This is due in large part to the nice play that cloud computing gets in the general population, and perhaps from the use of cloud in their personal lives such as backup systems to games or cloud photo storage.

3) The first generation cloud-based applications were quick to provide an ROI.  The business value of cloud computing has always been in question since the migration began in 2006.  However, the data points that are coming back from the use of initial cloud-based systems show that the ROI from cloud is there, and it’s typically larger than many expected.

What business understands about the use of cloud computing is that it’s typically a positive step toward providing the business with a much faster turnaround time from the identification of a need to implementing business solutions, and cloud can accomplish the project’s goals at a greatly reduced price.  While you can argue the benefits and deficits for each company, or problem domain, speaking in general terms, the cloud has been a success for business.

I would not view cloud computing as a quick change by any means.  Within most companies, cloud computing will be an evolving use of new technology as it makes sense for the business.  Thus, the changes will be slow and systemic, but the changes will happen.

The post How Cloud Adoption is Changing the Business Landscape appeared first on Logicworks Gathering Clouds.

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