Why businesses move to the cloud: They hate IT

Two thirds of business managers keep budgets that let them buy tech without involving IT

By Kevin Fogarty  5 comments

The pitfalls of outsourcing to the cloud
Don't wan't to deal with their own IT department? Then they have to deal with someone else's IT department. A customer/provider relationship is very different than supervisor/employee or interdepartmental one. The provider can choose to stop taking the customer's money and tell him to go away. Sure, the customer can sue, but in the meantime he's got NO SERVICE.

Slashdot user Stavr0 | What's your take?

Here's an interesting bit of data to make IT executives feel insecure:

Eighty seven percent of business managers said they agree or strongly agree that technology is critical to serve and support their customers, according to a Forrester survey of 2,961 business users from Q4 2010, presented at Forrester's IT Forum 2011 May 25 in Las Vegas.

Sixty-nine percent admit their normal budgets – not the shadowy ones they use for rogue projects – include line-items to buy IT products or services without the involvement of IT.

[Also see: How to build a career in cloud computing]

Their top reasons for going around IT? The need to respond quickly to changes in the market, self-sufficiency of their IT-savvy workforce, and the easy availability of top-quality it services that can be bought without long implementation or testing (cloud and SAAs apps, primarily).

Contributing to the technology gap are organizational structures under which only one in five IT organizations report to a business unit, according to a report from Forrester analyst Nigel Fenwick.

Since asking IT for something big is a political issue if it doesn't report to you or your business unit, it could very well save time (and the political capital they'd spend asking for things) for business managers to whip out a credit card instead of calling IT when they need something.

Gartner just published a report encouraging CIOs to move quickly to cloud computing, partly for the cost-efficiency it can add to IT, partly to put IT itself in a position to deliver more sophisticated IT services to business units more quickly than without heavily virtualized infrastructures.

A lot of businesses are still hesitant about cloud, and for good reason.

If they wait so long researching cloud that their whole end-user constituency drains away from them to external IT providers, however, they lose the chance to maintain security and reliability at levels they prefer and justify their salaries for next year.

The cruel truth about the easy-to-use, business-enabled Web 2.0 is that it allows customers – both external and internal – to vote with their feet.

If you can't lock the doors to keep them in, you've got to figure out how to arrange your goodies so they pick most of what they want before getting the chance to walk outside.

Otherwise IT ends up doing hardware support for legacy apps, negotiating and enforcing contracts and precious little else.

In evolutionary terms that might be the way to go; in practical terms it would be a disaster leaving technical decisions to people whose technology vision isn't clear enough to tell the difference between Cloud and fog.

5 comments

    The Security implications of this is pretty scary! Unfortunately we in IT have brought a LOT of this on ourselves!!
    Tom Hodgson
    Tom Hodgson 34 weeks ago
    Corporate IT departments are too often inflexible, old fashioned, painfully slow to embrace new technology (raise your hand if you're still using Windows XP at work), frustratingly not-people-friendly, thickly tied up with red tape and embroiled in internal politics.

    This is part of what makes an external service which is taking your money directly and thus has an interest in providing you good customer service (unlike an internal department) so very tempting. To keep an external product fresh and provide value, they are often more likely to be on the cutting edge of the tech, to move faster, and to provide more flexible options.

    IT departments and their cultural issues are often their own worst enemy, driving people into the hands of external 'cloud' providers.
    ps2os2
    ps2os2 34 weeks ago in reply to Tom Hodgson
    One of the big reasons IT departments are inflexible is that we have experience in IT. All sorts of issues that are out there that the user depatments do not have to worry about (but should) like Disaster Recovery/Back up/security . That is what an IT pro does is worry and is knowledgable about all these small "nuances" that the user department usually does not have a clue about. There are many other issues, I have just highlighted a couple. The IT department should be comunicating this to the department making the request. If they don't then you do have issues. IT isn't all knowing but they have several experts to call upon for input. Each expert is there to throw light on the issue.
    markhahn
    markhahn 35 weeks ago
    a lot of people use "cloud" to mean "outsourced IT", so yeah, obviously it's an end-run around your companies local/extant/entrenched IT. and in that sense it's nothing new, and for that reason, a bad use of the word. the more meaningful use of "cloud" is specifically for VM hosting, since this is new and has some novel implications for IT. but it doesn't in any sense get rid of your company's local IT, since someone still has to build, manage, maintain, upgrade those VMs. even if someone else is maintaining the virtual datacenter in the cloud.
    hydrogenbob_tw15707128 35 weeks ago
    The Cloud allows a business to obtain a Service from a vendor instead of a Software Application. A Software Application requires hardware to run it on, system and application admins to install and configure, and the management of licenses, support and other technical matters. Hence the business unit must engage IT, and have IT's approval, commitment and capabilities to ensure success.

    A Cloud Service enables the Business Unit often procure the service without IT's involvement. Accessed and managed through the web, there is no software to install. IT may be engaged in some cases (integration with enterprise applications for example), but there role will be limited. In many cases Business Units procure Cloud based services without any knowledge of their IT departments.

    This is not hypothetical, it is happening today. The Social Collaboration solution that I deliver is available as a software application and as a SaaS offering. Most of our SaaS customers have never engaged their respective IT departments in the lifecycle of the project, and those that hvae are only for minor issues (troubleshooting firewall issues for example) or enterprise integration. To procure hardware, I engage our IT department. For Amazon EC2 VMs that I have procured, IT was not part of the process, procurement was akin to a travel expense.

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