The Cloud Changing the Business Ecosystem
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27 Aprilie 2011 |
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KPMG ROMÂNIA S.R.L. |
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Relevance of Cloud Computing
Changing role of IT
Cloud Computing, popularly known as 'the Cloud', promises to change the face of Information Technology (IT) as we know it today. IT is recognized not only as a business enabler, but also as a strategic tool that will redefine business objectives. However, of late the proliferation of IT in most large organizations has leveled the playing field. The emergence of the Cloud could lead to a new round of innovation in business processes. Existing business models may need to change to be able to leverage on the strengths of the Cloud. Further, totally new disruptive business models will emerge based on the Cloud.
Technological advancements such as the introduction of high-speed broadband, 3G and 4G technology (long term evolution), high-efficiency blade servers , network optimization solutions, etc. could enable the IT industry to provide dynamic and value-driven services and solutions. Businesses now demand more flexibility, scalability, cost-efficiency and ease of use from the IT solutions and services used by them.
A dynamic IT environment, that caters to real time information requirements, could help businesses not only meet their existing business objectives but also set up new ones.
IT in business
Business environments are becoming increasingly complex and competitive. At the same time, the expectations of customers are also increasing. With companies now looking for new ways to enhance the quality of their products and services through IT, the traditional model seems to be inadequate Sourcing and deploying IT systems and solutions, using the traditional model, may not result in the optimal utilization of resources while requiring large investments to continue functioning. Businesses not only have to setup an in-house (On-Premise / Hosted) computing environment but they also have to build / source IT teams to manage the same – thus adding on to costs.
Some of the key challenges that are associated with the traditional model of sourcing and providing IT services are as follows:
Limited IT budget:
Initially, the IT budgets of organizations were limited as IT was looked upon as a support function. The recent economic downturn has put a strain on the IT budget of most companies. Setting-up an On-Premise computing environment or upgrading existing systems requires substantial investments.
Scalability of systems:
Current IT frameworks and design principles are not very flexible and could result in a design overhaul of existing solutions, to accommodate drastic changes to user requirements. E.g. system administrators manage peak demand for server access by investing in additional hardware and software resources which are under utilized during non-peak loads.
Longer gestation period for setting up the IT infrastructure:
The traditional process of designing, developing, and deployment of solutions is time consuming and iterative. Consequently, this could negatively affect the execution of various business processes especially when there is a need for the rapid development and deployment of applications.
Infrastructure management:
Management of the entire IT function requires investments in the form of time, professional expertise, and financial investments. Moreover, managing IT infrastructure might not be a core competence of a company. This is a constant challenge in most organizations.
Need for enterprise mobility:
Owing to convergence in global markets and the need to stay connected round the clock, business executives are now demanding a well connected environment that caters to real-time information interchange. The traditional environment needs a significant overhaul to be able to meet the expectations of a virtualized / connected environment.
Factors fostering the growth of the Cloud
