The ongoing evolution of cloud computing and software as a service is perhaps the single biggest development in the technology industry. It is, in effect, turning traditional ways of doing things on their head.
In February, Steve Hall wrote an interesting piece on the impact that cloud computing could have on the IT outsourcing industry – his theory being that while it could revolutionise relationships and pricing models, there are still many risks to overcome first.
And it’s a theory backed up by recent research published by the Everest Research Institute, which claims that a buyer’s investment in a cloud infrastructure can save between 40% and 50% over a traditional IT platform.
But before you go stomping into your CIO’s office demanding answers, Everest does pull out a number of risks.
“Enterprises face multiple challenges to adopting cloud computing such as fragmented application portfolios, lack of cloud standards, security, system performance and management control,” Everest claims. “Security breaches, downtime, business disruption, and regulatory non-compliance issues pose significant concerns to buyers, and Everest predicts broad-based standards won’t come for 18 months or longer.”
As a result, Everest sees three potential scenarios for the evolution of cloud computing IT outsourcing:
1. Niche adoption;
2. Industry consensus, where the cloud becomes a mainstream outsourcing option; and,
3. “Hype and decline,” where most services are merely branded with the cloud stamp.
From a cost perspective, let’s hope it’s scenario two that becomes the reality.
Source:http://blog.procurementleaders.com/procurement-blog/2010/3/10/cloud-computing-a-major-opportunity-for-it-outsourcing.html
