How Cloud Computing Will Change IT

Posted by Unknown Sunday, July 31, 2011

One can predict that, CIOs, like Ulysses, will eventually pass into calm waters-the future in which new processes and products will replace the legacy activities that make up today's IT world. By post-cloud, I mean when cloud is no longer an option to be compared with today's IT conventions, when cloud computing has become the accepted, standard way of doing things. today, I hear many individuals opining that software vendors "won't allow" the shift to cloud computing to erode their pricing or profitability. Within certain sectors of people involved in cloud computing, there is lots of discussion of Jevon's Paradox, which holds that cost reductions in a good or service, rather than reducing total spend, actually increase it. With transparency of cost will come a deployment decision approach in which cost is one of several factors (including privacy, compliance, application bandwidth/latency requirements, and so on) that determine whether an application is deployed internally or externally.



Along those lines, the biggest challenge IT organizations will find on their road to the post-cloud world is legacy systems. These systems represent an enormous drag on the ability of IT to align with the demands of business users who want a partner in developing new IT-infused offerings. For the post-cloud world, it won't be enough to manage legacy applications with as little additional spend as possible. Even with low additional investment, these applications carry a cost structure of maintenance, etc., far higher than today's offerings. Too many people think of cloud computing as virtual machines on demand.

The post-cloud IT organization will rely heavily on PaaS, using an internal or external organization to manage the underlying functionality and infrastructure. people who know how to build business offerings, can integrate multiple applications into the new one, can adroitly implement calls to external APIs and services will be in high, high demand. This kind of application development is akin to being a general contractor, assembling a set of internal and external components and services to deliver functionality. With the shift of IT investment toward apps, there will be a shortage of people who can create post-cloud apps, so as a cloud CIO, start thinking about your strategy to obtain this talent. These people fail to comprehend how rapidly the world is moving beyond the virtual machine as the unit of application deployment.

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