The cloud is causing the most significant disruption to the IT organization as we know it. The trend to cloud adoption is picking up speed, and as confidence in cloud services and service providers increases, the adoption curve will accelerate. All parts of the in-house IT organization will be affected.
The cloud means the end of in-house IT as we know it. Is your IT organization ready?
Historically, IT has controlled the hardware and software in the data center, as well as the delivery channels for connecting end users to data center resources. With cloud, IT is increasingly losing control of its role in application selection and development as the business contracts directly with cloud providers for software solutions, using their own OPEX budget.
The ease of procurement, flexibility, scalability, and more predictive time-to-deploy all make cloud services attractive to the business. If IT cannot move faster and show the business what is possible, it will become increasingly marginalized, and will likely be absorbed into the cloud and the business.
The cloud is marking the end of classic IT and the plan-build-run model, as businesses increasingly move away from the traditional “own and operate” approach to IT. IT needs to adopt a new model, enable-integrate-manage, scale down its operations, and re-tool itself with new capabilities to take on new accountabilities.
The key capabilities that will bolster IT’s strategic position within the organization are:
- Building a technology-integrated business strategy rather than a technology strategy based on the business strategy.
- Enabling business agility and growth.
- Facilitating the innovation mandate.
- Understanding how your customers exploit technology in their day-to-day lives.
- Mastering the capabilities and uncertainties that come with rapidly evolving technologies.
- Seizing opportunities presented by technology innovation.
- Developing and managing an efficient and flexible infrastructure.
- Managing your portfolio of investments in business changes involving IT.
- Optimizing the value, cost, and risk of IT sourcing arrangements.
Big Data Analytics:
- Processing, discovering, and analyzing massive data sets for deeper insights and more effective decision making.
- Tying together multiple big data sources including social graph, intent graph, consumption graph, interest graph, and mobile graph.
- Enabling real-time self-service business intelligence.
The IT leader needs to lead the IT organization through a transition that will change IT’s focus from mainly projects and operations to facilitating the creation of advanced business capabilities. There will be fewer roles and people in IT, and a more strategic focus. It will not be an overnight transition, but it will happen, and those IT leaders who do not take the lead, will find themselves increasingly disconnected from the organization.