Moving to the Cloud, the Business Way

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The world over, and including in India, cloud computing is making waves for being a technology that is set to reduce on the OpEx and Capex for enterprise segment. So what is the business case for moving towards the cloud computing way?

That is the big question that is being asked by many CIOs who want to leverage new business opportunities, and create a catalytic equation for integration and change as well as reduce costs and change the financial model of IT investments.

However, Cloud is simply outsourcing in a different format and surely the business case is simply reduced total cost of ownership? This may have been the initial perception about the cloud computing environment, however, on the other hand, the role of IT and the way we communicate is changing fast. And as a result, the Cloud is becoming seen as a disruptive opportunity for IT decision makers and the businesses they serve to gain new capabilities provided as a flexible service. In addition and at the same time, traditional service providers are being challenged to move away from inflexible contracted models.

And depending on changing scenarios such as industry vertical, size of the enterprise and long and short term business objectives or goals, a business case will have different priorities, and provide business agility to the overall enterprise environment as this is the biggest reason for moving to the Cloud, followed by cost efficiencies and resource effectiveness.

Hence, if we closely look at the business case for moving towards the cloud, the business case for the Cloud is therefore not only an IT issue, but one that impacts other functional stakeholders as well as alignment to wider business strategies. And indeed, enterprise community can procure services from the Cloud directly, bypassing the IT functions so a joint approach is needed to maintain both effective IT governance and alignment of the IT infrastructure for an enterprise.