There continues to be much hype around cloud computing. It’s been increasing over the last 18 months and is likely to continue growing for the foreseeable future. A number of key factors are contributing to this, including (but not limited to):
- Increased levels of cloud service maturity particularly in the software as a service (SaaS) market.
- Huge investment from vendors and service providers.
- A growing number of deployment models including public, private and virtual private clouds.
- An ever increasing range of service offerings, such as SaaS, infrastructure as a service (IaaS) and platform as a service.
Hype is one thing, but why are CIOs and CFOs starting to take cloud computing so seriously? Regardless of the cloud solution chosen, they all have one thing in common; a move away from a capital intensive model to an operating expense (opex) based model.
No CIO or CFO wants to be tarnished with the fact they invested huge sums of capital into a project that offers poor ROI. This cost-focussed attitude is helping opex-based cloud computing gain more traction at the executive level.
Many CIOs are at a ‘crossroads’: should they spend millions of pounds on building new data centres and buying all new assets in order to refresh or grow their existing infrastructure? Or, should they consider a cloud model, which may see them only paying a penny a day for a server with no capital outlay.
If you chose the former, it’s likely the CFO will ask what was the value of the recent, expensive refresh. Also, in the mid-market in particular, it may no longer be a case of ‘what will your data centre look like and cost to run’ but more a case of ‘will you own a data centre at all’?
Cloud computing changes the dynamics of buying IT infrastructure. In the past CIOs would request budget based on a series of technical requirements and the CFO would often have to trust the judgement of the CIO.Leave a comment on this article