Cloud Computing - A Business Case

There are significant insights that vendors of cloud computing could take home from the Vanson Bourne survey, commissioned by 2e2. And there is much work to do out there in the market, along with perfecting their technology in Cloud and keeping pace with the evolution. To begin with, given the fast evolving technology of cloud computing, the current buzz word in IT services for business, there is considerable apprehension among businesses regarding where they stand with regard to the technology. While businesses have a broad idea of the concept of cloud, they are also trying to make sense of the numerous models available and the pace of change in cloud computing arena.

The survey reveals that the majority of businesses are still not sure if cloud computing would fit their business model. Further, even if businesses do see an opportunity to reduce costs in IT infrastructure by switching over to cloud, they are not sure as to how to go about implementing them. One factor that adds to the confusion is the number of models available of the concept, which makes businesses baulk at the prospect, not being sure as to which ones to implement. And one important and critical concern, as is only to be expected, is about the loss of control they could face, using software as a service - businesses are apprehensive of losing control over their IT infrastructure. Add to that, their current IT service agreements that they may be in the midst of, there is considerable reason why a majority of businesses are resorting to a ‘wait-and-watch’ approach.

The marketing issue for vendors is one of influencing consumer perceptions of cloud’s usefulness to business, while addressing their concerns. As is typical in the introduction of any new product into the market, making clients make the transition from an existing technology to a new one needs demonstration of benefits, along with educating consumers, in the light of their current circumstances.

Cloud vendors should perhaps pitch for a hybrid model, rather than expect an overnight adoption to cloud technology, which would provide a mix between the traditional and cloud models of computing. It may have to start off with an analysis of the existing IT infrastructure, checking the amount of inter-dependence of the various components, to see if the business would have scope for, and would benefit from, cloud computing. It would be good to act in the consumers’ best interests, given the concerns voiced by many of the IT managers in organisations that are still contemplating the merits and demerits of cloud. The increasing pace of evolving technology is a challenge as well as an opportunity. Cloud does lead to increased server utilisation from the current levels, reducing carbon footprints and adding to green value of business. Microsoft, meanwhile, has announced that the manufacturing industry stands to gain out of cloud computing, where lower costs, better sharing of and access to information across international boundaries and the reduced response time that cloud blesses their businesses with, are reportedly the chief benefits. Microsoft has been going full throttle with its DIRA framework. And HP is serious about Cloud and SaaS as well. 

With the benefits out there and given the reasonably high levels of uncertainty about the adoption of cloud in business, there is a big chunk of opportunity up for grabs for vendors who gain the trust of businesses and enlighten them through education, taking a practical approach to business needs and constraints.