Cloud to drive business strategy and innovation

Pro

8 March 2011

The on-going adoption and development of cloud computing technologies “is enabling a more central role for IT in shaping business strategy and driving innovation,” according to a survey of American and European IT managers.

The study was conducted by IDG Research Services, and sponsored by CA Technologies, polled more than 200 IT managers and found that the vast majority (96%) believe the primary role of IT has changed over the past five years, and 71% expect that trend to continue over the next two years.

More than half (54%) of the respondents acknowledge that the current value of IT is largely defined by its role as owner and operator of IT infrastructure. However, respondents believe within two years, the primary value of IT will come from managing the IT supply chain. Fifty per cent of those surveyed indicate that an increase in cloud-based services, particularly those that were formerly managed in-house, has contributed to this evolution.

“As the IT organisation transitions from an owner and operator of IT infrastructure to a manager of more complex, multi-platform internal and external services, CIOs are tasked with redefining the value of IT to the business,” said Adam Famularo, general manager, Cloud Computing business, CA Technologies. “This shift represents exciting new opportunities for IT professionals to expand their skill sets and become more strategic advisors to the business.”

 

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The survey results also indicate that IT professionals believe cloud computing accelerates agility (63%), innovation (58%) and collaboration with the business (57%). Respondents anticipate cloud computing will boost IT productivity (55%) and decrease the level of staff time/resources dedicated to IT support (40%).

This transformation will require a significant change in an organisation’s current skill set, including a demand for more business and management experience.
The survey found that more than half (60%) of respondents said demand for personnel with expertise in cloud computing has increased in the last five years, and 63% expect demand to grow over the next two years. Some two-thirds (66%) cited the ability to manage service providers as the IT skill that is most likely to increase in importance over the next two years. Seventy-two per cent said their IT organisations are focusing more time on managing outsourced IT or cloud services providers now versus five years ago, including more time spent on vendor management. Nearly 70% of respondents agree that an increasing number of CIOs and senior IT staff will have a business (as opposed to a technology) background in the future.

Respondents anticipate new IT titles dedicated to cloud computing and vendor management will emerge. When asked what these new titles may be, predictions included:
• Cloud architect
• Cloud service manager
• Cloud integration specialist/expert
• Cloud security manager/engineer
• Director cloud infrastructure
• Executive vice president of cloud technologies

Driven by the trends confirmed identified, the report argues, IT increasingly is taking on the appearance of a supply chain. The traditional supply-chain model is usually connected to manufacturing, where loose collections of resources (technology, processes, goods, services and people) are organised in a logical manner to deliver goods and services to a customer base. However, as applications, infrastructure and even business processes migrate to the cloud, IT organisations can become effective managers of IT supply-chains using multiple internal and external sources. The goal of this approach is for IT to be able to create value-and increasingly drive business growth.

For access to the full survey report is available here.
http://www.ca.com/us/lpg/forms/na/cld/10521_12702.aspx

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