Cloud – What the hype is all about


So you must have heard about the Cloud by now. You must have heard about it as a new phenomenon that will change the IT world. I would agree that it is going to have a significant impact on the existing business models in the IT industry. However, it would only improve our lives if we adapted to it quickly. Those who fear and resist change sometimes lose their edge because they fail to adapt to the ever-changing world.

The Need for Change in Business Models

So many examples of companies from 8Os do not exist anymore. Those who have thrived changed as the world, especially the consumer, changed. Studies by Gartner and Forrester suggest the same about Cloud. These studies are available for review if you want to get stats on the future of the cloud. How I look at it is much simpler than the complex studies conducted by these research organizations. As far as I am concerned, consumer expectation governs how businesses are run. IT consumers have started questioning their IT spending and are tired of spending more on IT than operations. At the end of the day, the goal of every business is to make a profit, and the continuous cost of IT infrastructure and services is something that never flies with CFOs. Does it mean that businesses are not going to spend on IT? The answer is NO. It’s just that businesses would consider other options. It does not mean that IT service providers will go out of business. This implies they must change to meet consumer expectations of spending less on IT and more on operations.

Read more: Understanding Cloud Computing

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Evolution of Industries and the Cloud Revolution:

Let’s pause for a second and see how other industries evolved. The power industry went through the same evolution cycle. Factories used to own their power grids that supplied electricity for their needs. Subsequently, power generation was centralized, and now you have a subscription-based electricity model where you pay monthly for as much electricity as you use. Similarly, the mobile manufacturers changed their business model to a subscription-based one, as selling their cell phones directly was not economical considering the manufacturing cost.

The IT industry is no different, and times have come to change. Businesses only want to pay for the platform, infrastructure, and services when they use them. According to one estimate, we only use around 30% of our computational power, although we spend a lot on purchasing and maintaining the hardware resources. Enough evidence suggests that Cloud is the future, and we should prepare ourselves for this change.

Read more: Cloud Services – Bridging the gap between two Worlds

Adapting to Cloud Computing:

Let me elaborate briefly on what I mean when we need to change and adapt to cloud computing. It’s not that we only need to start training ourselves on cloud platforms and building cloud applications; it’s also about understanding this change from a business perspective. This means that once our applications are up and running, the returns will not be very high initially, and only our customers’ continuity will reap our rewards in the long term. It means that the cost of services has to be reduced to be profitable in IT.

This means that the quality of our applications must improve to leverage the cloud’s computational power. IT companies must change how they manage their clients to ensure client satisfaction over a longer period. IT companies need to streamline their processes to increase IRR per employee. This means that IT resources need to manage their time more efficiently. It is quite clear that the change is manifold, and It would take some time to devise methodologies for different business models that would work best with Cloud. However, we must start now to gain an edge over our competitors. Every resource, irrespective of its role in the industry, needs to start thinking from the perspective of the cloud because it indeed offers lots of opportunities.

Read more: Cloud and the offshore model

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Ultimately, I want to state that Cloud computing is nothing new for some of us (more on this in my next blog). This does not mean that we must stop focusing on the on-premises model. Cloud computing offers opportunities, and only those who recognize this would benefit from it.

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1 thought on “Cloud – What the hype is all about”

  1. There are options to have hybrid environments or using a complete Cloud model depending on your needs. Take a look at Microsoft’s Cloud offerings when deciding on what technologies are right for your business. This link will help:

    Jodi E.
    Microsoft SMB Outreach Team
    [email protected]

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