Driving IT Change
Cloud computing also creates an opportunity for IT departments to change their focus from deploying and supporting applications to managing the services that those applications provide. This allows them to focus on high-value activities that align with and support the enterprise business goals. The CIO can then function as a technology strategist, working with business units to understand their business needs and advise how best to use technology to accomplish their objectives.
But this is a big change in business strategy and, perhaps understandably, some business and IT leaders remain hesitant about stepping off the parapet and into the cloud. The usual concerns cited are security, availability, and control. An effective cloud computing strategy must incorporate these factors, if it is to drive business success.
Building a Trusted Cloud
In cloud computing, servers, network capabilities and storage are provided to the enterprise as a service. In turn, data is delivered from the enterprise to the cloud, with attendant concerns about letting sensitive information move outside the company firewall.
These concerns must be adequately addressed. Industry standards and regulations such as HIPAA, the Payment Card Industry Data Security Standard (PCI-DSS), the Gramm-Leach-Biley Act (GLBA), and the Statement on Auditing Standards 70 (SAS-70) have very defined and measurable security requirements. For cloud computing to be viable, providers must adhere to the same standards and controls that an organisation would impose in house.
IT systems that support key enterprise applications need to be stable, reliable, and highly available. Theoretically, on-demand computing should offer a high degree of reliability since the cloud distributes compute, network, and storage functions across a substantially larger pool of physical and virtual resources, making it more tolerant of individual hardware failures. However, to support this, providers should back their service with stringent SLAs for availability and define liability for unplanned outages.
By their very nature, cloud computing service models involve transferring some control to a trusted service provider. But not all organisations will want all systems to migrate to the cloud -- and therefore varying levels of control can be provided within the cloud computing model.
Service providers should offer a high level of real-time visibility into the systems that reside in the cloud. This should include accurate and meaningful reporting on availability, performance data, service requests, how well the service provider is meeting SLA requirements, and other key metrics. Ideally, a provider should also offer the option of self-service provisioning via a customer management portal, which allows hands-on control of systems in the cloud.
Conclusion
Cloud computing is more than the driving force behind the next wave of technology innovation. It is a sound business strategy that helps organizations practice better financial management and creates a more sustainable, cost-efficient model for supporting IT services.
While valid concerns exist, they can be managed with proper preparation. Detailed planning can help determine when and how IT infrastructure should be moved to the cloud. Careful evaluation of vendors can help identify a service provider whose solution is enterprise ready in key areas such as security, availability, and control.
Ronald Gauci is Area Vice President Sales -- Australia and New Zealand for Verizon Business. Gauci is responsible for the management, growth and transformation of the business. His focus is on raising awareness of the Verizon brand and helping employees to deliver a world-class customer experience. Gauci is also a member of the board of the Australian Information Industry Association (AIIA).
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.