CIOs: At What Stage Is Your Thinking On Cloud Economics? – Forrester

Posted on 04 May 2011

The Hub Commentary_

I tend to agree with James and have written often on the same subject.  Those leading their industry this year, likely won’t be the ones leading next year.  The question is are you trying to merely drive down costs or fuel growth?  Even with the Amazon blip of a week or so ago, those fueling growth are unwaivered in their approach.

Define and leverage the cloud as a deployment option with the right objective and measure it accordingly.  There will be blips in service from service providers, have an alternative plan for those occurrences based upon the requirements of the service.  Having the proper monitoring and management in place to monitor and measure services will be key.

Just because you push services to external providers does not mean you have alleviated the accountability for the service.  Management of the providers has to be factored into the cost of the service.

I look forward to comparing this years Fortune 500 list to next years and find the movers and shakers of their industry.

Do you run for cost or fuel for growth?

Michele

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Is your cloud strategy centered on saving money or fueling revenue growth? Where you land on this question could determine a lot about your experience level with cloud services and what guidance you should be giving to your application developers and infrastructure & operations teams. According to our research the majority of CIOs would vote for the savings, seeing cloud computing as an evolution of outsourcing and hosting that can drive down capital and operations expenses. In some cases this is correct but in many the opposite will result.  (Read Full Article…)

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