Untailored solutions may not precisely match corporate needs and standardisation loses competitive advantage of IT excellence.
Improved support and maintenance.
Contracting on fixed standard terms with limited warranties, indemnities and so on.
Anytime, anywhere access. Availability on tap
Lack of integration and the need to manage legacy systems.
Minimises hardware/software investment costs.
Lack of control over data and content.
Low barriers to take-up. Cloud computing is designed to be user-friendly and minimise specific training requirements.
Risk of lock-in. Customer should provide for exit by, for example, requiring the service provider to place a copy of the source code of relevant software with an escrow agent, obtaining a copy of the object code, ensuring that its data is backed up elsewhere and ensuring that it understands how its data will be returned.
Support by advertising can further reduce costs.
High risk of service provider failure for new services due to high start-up costs and low initial returns.
Costs of cloud computing should decrease over time as users increase.
Risk of hidden extras for additional users, storage and so on.
Forced standardisation means the IT organisation can focus on the features of its business which set it apart from its competitors.
Risk that customer fails to control usage or increased storage (the negative side of pay-for-use).
Reduces internal management overhead.
Compliance issues, such as data protection, encryption, SOX and MiFID.
Elastic IT can expand or contract as required.
Complexity of contracting and management in multi-sourcing arrangements.
Organisations can outsource their carbon usage to organisations geared up to manage and minimise that impact.
Reliance on online connectivity. The internet is fast becoming a single point of failure for many organisations: how long could a company operate without it?
For whom is cloud computing?
Cloud computing is suitable for companies of all shapes and sizes depending on each business requirements. For example, it may work for start-ups since it removes barriers to entry (such as cost) and growth. For SMEs, it provides flexibility and innovation and predictable costs.For larger corporates, use of private clouds or restricted-use clouds may be appropriate. Multinationals may also benefit from more flexibility in global deployment and an increase in market responsiveness. Consumers and also the public sector may also find it useful for its flexible and low cost investment.Some of the key challenges facing chief information and technology officers include:
Understanding and controlling likely usage requirements that will drive the costs of cloud solutions. This is relevant when evaluating options and in realising the maximum benefits in operation.
Evaluating and implementing interoperability between cloud services and legacy systems or with other cloud services.
Valuing the risk of moving to cloud services, for example, from accepting supplier terms that exclude warranties or indemnities.
Ensuring regulatory compliance, either general, such as data protection, or sector-specific, such as the requirements of the Financial Services Authority.
Establishing appropriate levels of governance, both internally and with vendors (such as through service level agreements, auditing, support and training).
Avoiding technical or commercial lock-in (making sure data and services can be ported between applications, platforms and infrastructures) so that suppliers are forced to focus on establishing quality lock-in.
All articles are for general purposes and guidance only and do not constitute legal or professional advice. Copyright 2011 Anassutzi & Co Limited. All rights reserved. Information may be shared or reproduced only if accompanied by the author’s name and bio.
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