Competing With Cloud Computing Providers
Cloud computing promises to deliver cost saving through the "pay as you use" paradigm
. The focus is on adding computing resources when needed and releasing them when the need is serviced. In this paper, we review the current cloud computing scenario and discuss the challenges of competing with cloud computing providers.Cloud computing and IT in Future
Any software developer in India who advocates cloud computing is inexperienced or are incapable of understanding the real details of IT. Thats why it is commonly said that "Public cloud computing is fine for the SMB and startup market, but enterprises aren't ready to move to that model." The following points make it clear what cloud computing means for the future of IT.
Rationing role of IT
IT has traditionally been given a fixed budget and decides which of the many business unit demands it will satisfy with that budget. Due to its rationing role, IT seeks to reduce demand for IT resources. Rationing also means that business units are dissatisfied with IT service levels and have a strong motivation to find other ways to satisfy their IT requirements. In the past, it was extremely difficult to find those other ways, but with the rise of public cloud service providers, there is now a convenient way to bypass IT.
IT as a service provider
IT must act as a service provider rather than acting as a project manager. It needs to welcome business unit demand and view itself as a service provider, ready to deliver resources to any and all that desire computing power. Its because now IT is no longer a monopoly supplier.
Implement chargeback
Indian software developers must have signals to evaluate the use of services versus the benefits derived by deploying those services. Cost is the signaling mechanism used in businesses, so IT has to be prepared to offer chargeback.
Jon put it this way: "Business leadership needs to be held accountable for IT service consumption." In some very mature organizations, this may be achievable with "show-back" of costs to the consuming business units, but in most enterprises, "charge-back" will be a necessity."
IT needs to transform its culture
Instead of being a technology-focused monopoly provider, IT must be a market-serving, demand-generating, business enabler based on delivering IT service capabilities.
Challenges faced by the IT organization
Need of a new funding model
1. CFOs will need a new funding model which places the financial responsibility for consumption on the shoulders of the business consumers.
2. Requires building capability prior to demand arrival and CFOs must be ready to fund capacity to enable service provisioning.
3. IT can sell services to business units after the capacity is in place.
Internal IT delivering cheaper cloud computing
4. Internal IT can deliver cloud computing at a lower price point than a public provider.
5. IT shops can introduce multi-tenant, automated, highly secure, tiered, self-provisioned capabilities that can deliver lower unit costs and better SLAs than what's available in the Public Cloud for IaaS [infrastructure as a service] and PaaS [platform as a service].
6. How internal IT groups can achieve lower costs than public providers is a question.
The main battle between the private versus public clouds is on the non-cost requirements that certain applications have, and where the best place to address those requirements is. IT will be far better to outline services in which it can offer undeniable advantage, like certainty of compliance, privacy or business domain knowledge.
The outcome is that IT should recognize application profiles that do not require those elements and seek to place those workloads in the most cost-effective location. Absolutely crucial to this application placement decision process will be an automated deployment and governance systems that can in real-time assess application characteristics and dynamically choose where to host it.
Conclusion
In the future, Cloud Computing will be the only choice. Organizations that fail to embrace cloud computing as part of a new way of working will struggle to survive beyond the next decade.
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