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Governing the New Wild West….The World of Many Clouds

ID-10056513In many ways, the race to the cloud resembles the Wild West of the 1800s. The urgency with which business groups are rushing to adopt cloud services, often without IT involvement, resembles the race out to the western US of those looking for gold. With our customer engagements, we have found that there are 5-10 times more cloud applications being used than IT is aware of.

With this rapid rise in shadow IT, organizations are seeing their costs skyrocket as they lose visibility of how much they are spending on cloud services. For example, we worked with a business that discovered it was using well over 600 vendors (and wasn’t aware of 90 percent of them) and spending millions. Shadow IT has been forecasted by CEB to be as high as 40 percent above the IT budget.

The influx of investment in new cloud ventures is also leading to a land grab by cloud service providers, some which are on shaky ground. According to Gartner, only one in four cloud vendors will exist in 2015 due to acquisition or being forced out of business. This leads to risk for organizations that need to ensure continuity of their business applications. Finally, just as the Wild West was filled with dangerous towns and outlaws, cloud services carry business risks if organizations don’t have strong cloud risk and compliance strategies.

Despite this, organizations are keen to brave this new frontier to capitalize on the benefits of cloud. Cloud services help organizations become more agile, reduce costs, and can simplify IT infrastructure. However, to reap these benefits IT teams need a different way of governing the new territory of cloud.

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“Is It Time To Become a Collaboration Technology Broker?”

It’s no coincidence that when choosing where to work, Type A personalities gravitate to organizations at the leading edge of their chosen field or that enable them to make a real difference. But gone are the days when you see “cell phone provided” in a job offer.  I don’t think I’ll choose my next employer based on what collaboration tools they provide, but I will make a point of measuring how seriously they take collaboration and how it fits into their operations. For me it will always be an important selection criterion.

They say “people don’t leave companies, they leave managers.”  I think people leave cultures that hinder them for ones that promise to set them free.

With so many disruptive technologies and deployment options, it can be difficult for IT teams to support broadening and challenging business needs. Increasingly, and often out of frustration around ‘Slow IT’, individual business units are acting as buying centers themselves; creating an issue of ‘shadow IT’.

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#HigherEdThursdays: Changing How IT is Consumed on (and off) Campus

Universities are driving the need for IT consumption-based pricing models more than any other market segment.  This is natural given the unique characteristics of their IT environments.  First off they are at the forefront of the IT consumerization movement driven by new generations of students and work habits. With one fourth of the undergraduate population and half in most graduate programs changing every year, one can easily understand why this is the case. While BYOD has emerged in the enterprises over the past few years it has been a commonplace in higher education since campus networks were built in the 80s.  When public cloud-based applications emerged college students were the first to embrace them and driving some to a prominent position in the industry.  Facebook comes to mind.

It is not just students that make the universities very different than other markets.  On many campuses you find different layers of IT functions and associated decision making.  You have the central IT like all enterprises do.  But then you have some lines of business having their own IT function either at the college or department levels.  Most major research centers have their own IT groups especially if they house a supercomputing facility.  Some grant-funded projects make their own separate decisions on IT services unique for such projects or for very short terms needs.

So what are the pricing models the higher education market is asking for? The answer is of course consumption-based pricing models but the devil is in the details.  A simple subscription style “all-you-can eat” model may not be sufficient in most cases  (and it is not really consumption-based after all, is it?).  We see these in traditional enterprise applications that are converted to a SaaS offer. A utility style “pay-as-you-go” model while provides most flexibility might not have the cost predictability the universities require (remember long distance phone service?). Read More »

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Shining a New Light on Shadow IT

More people than ever are talking about “shadow IT” nowadays.  As the name implies, it’s mysterious, perhaps even malevolent by some people’s standards.  From a traditional IT vantage point, this negative view may be somewhat justified given the risks it creates around security, compliance, productivity, and technology investment.

But let’s look at it from another perspective. Shadow IT is on the rise because more people outside of IT are gaining awareness and access to technology, and harnessing it as a business differentiator. More importantly, many of these people are business leaders with growing budgets that align to their priorities. Here’s how much technology budget growth business leaders expect in the next year:

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Over the next year how will your group’s technology budget change 

Source: Cisco Business and IT Priority Survey results Read More »

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Enabling the Business Value of Cloud Through Intelligent Infrastructure

IWAN ImageThe advent of the many clouds has now become a reality. Enterprises of all sizes and segments are embracing cloud solutions, whether private internal cloud, Virtual Private Cloud, Public Cloud, or some Hybrid. The number of workloads as well as cloud traffic  are expected to grow exponentially in the next 5 years.

The shift to the many clouds has significant impact on the role of IT.  IT has to reinvent itself to be able to keep control as applications are increasingly moving to cloud infrastructures.

In particular, there are two very strong trends that will require IT to increasingly position itself as a Broker of Services, and evolve from a more traditional role of being an infrastructure provider.
First, line of businesses intend to address some of their IT needs directly by purchasing cloud-based IT services. Read More »

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