Cloud Computing Benefits for IT transformation

In this post, I would like to share my views and ideas about IT Transformation vis-à-vis Cloud Computing. IT transformation means moving away from the traditional IT model in use in your organization and opting for a more cost-effective, flexible one by stepping into the cloud. Cloud Computing is the key to leverage your IT. Cloud Computing or its synonyms, Utility Computing, Web 3.0, and Grid Computing, all are based on a simple concept, that is access to almost unlimited computing power and data storage via the internet. It deploys thousands of virtualized servers to push up the limit on computing resource and efficiency, with offsite backups at more than one place. The cloud benefits you in more than a few ways. The new IT model will have more scalability, agility, simplicity as well as much reduced Total Cost of Ownership (TCO).

The fixed and variable costs of IT have been Hardware cost, Software cost and Service cost. In traditional IT model, the first two are responsible for about 70% of the total cost. By leveraging your IT to the cloud, significant reduction in these costs will have an invigorating effect on the financial health of your company. The Total Cost of Ownership may go down by as much as 60% in est case like CRM Usage like Salesforce, look at www.salesforce.com or some Mail Services like Microsoft’s BPOS look at www.microsoft.com or Google apps look at www.google.com. You can embrace the Cloud either as your IT infrastructure or development platform, as per your choice.

To take advantage of this emerging IT model, there are several points to ponder and develop business strategies. Before opting for leveraging your IT to the Cloud, you should decide on the nature and amount of information you want to be hosted off-site. If there are information that are too proprietary or secret recipes of your product – there will be always some such – you may have to go for a hybrid solution.

Peter Drucker defined strategy as “knowing where you are today, where you want to be tomorrow, and how you’re going to get there.” The operative word is how which for the IT Transformation is the Cloud. You should be ready to redefine your business strategies to profit by the awesome resources of the cloud harnessed for you. There will be need to develop different Service approaches, learning the nuances of the pay-as- you-use agreements, improving integration skills, designing to introduce innovations and gearing for faster time-to-market new products and services. Try to reap all the advantages of the cloud to strive towards your corporate goal.

I take your leave with the parting question: Will you include Cloud Computing benefits for helping IT Transformation ?

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