The Hub Commentary_
I’ve often written that you do not outsource for cost savings. Cost savings can be achieved when right sourcing and giving up control, taking advantage of the economies of scale offered by a provider and allowing standard services (the commodity services of your organization) rather than custom services.
I find the commentary that follows the article interesting. While I might agree that it may be an article for soft selling Google Cloud Services, you would be foolish to think any vendor doesn’t write to their strengths, but also wonder if some of the commentary comes from those IT organizations reluctant to change?
You don’t go the cloud just because you can, you right source it and must manage it accordingly and then you can spend your budget with the greatest gain. In a CIO article today citing an MIS Quarterly study, for every dollar/employee invested in technology, twelve dollars/employee can be realized in sales gain. The time for management and innovation investment is upon us and outsourcing the commodity.
How are you investing in the cloud?
The economics of cloud computing are driving down the cost structure of business so far and so fast that it’s scary, Google CIO Ben Fried says.
“It deeply disturbed me … in 2006, 2007 consumer companies were forcing efficiencies on a scale never seen before,” Fried said Thursday during remarks at the Bloomberg Link Enterprise Technology Summit in New York. (Read Full Article…)