Why Cloud Adoption is Slow
Cloud adoption by business has been slow though early adopters have reaped the benefits of business agility and efficiency by leveraging on the Cloud.
After about two years of evangelizing on cloud computing I would like to share some of the reasons for slow adoption and invite comments from the readers of this perspective.
Security
Most people fear losing control of their computing facilities and this translates into doubts about the Security of the Cloud.
Though the CSA Governance Model is exhaustive most large cloud service providers comply with its guidance there is a great reluctance to Trust the Cloud.
The ENISA has also created an excellent guidance on cloud security.
Cloud Providers and Evangelist need to work on building TRUST in using Cloud computing along with existing users of cloud computing.
Data Interoperability
Once I upload my data I will never be able to get it back again, and even if I do get it back the format will be useless for me to use off the cloud.
This again is unfounded except when the data is created in a SAAS system since the data is not interoperable to any other system other the SAAS system in most instance.
But the Standards are being evolved and a little patience and understanding will show that even in currently owned systems, data migration is one of the biggest show stoppers.
But the Standards are being evolved and a little patience and understanding will show that even in currently owned systems, data migration is one of the biggest show stoppers.
Data Loss in the cloud
There are so many instances of data being lost in the cloud, what I will do if I lost my data. The Information Lifecycle Management is most robust in the cloud but still the fear of control and anxiety and the hype of few kilo bytes of data being lost while managing tetra bytes of data by cloud service providers is not even considered.
Also in most cases of data loss the data has been restored, though there have been exceptions where data has been lost forever. But still if we statistically compute the ILM in the cloud will pass the Six Sigma Test.
Cost of the Cloud
Many believe that they cannot have long term cost contracts for the cloud, this may be true in most cases, but because of competition the cost of services in the clouds will only reduce as more people adopt the cloud.
The Cloud is all GAS
Many believe that the Cloud is a Marketing invention and not founded on strong technology platform. This is far from the truth; the cloud is an amalgamation of some of the best computing technologies and processes for reliable, resilient and secure operations.
Information Technology Leaders Insecurity
The Information Technology Leader understands the cloud but suffers from “amnesia” when he has to sell cloud computing to the business. The leader feels threatened that his team and his own job may be at stake if cloud computing is adopted. Little does he realize that once the Business understands the benefits of Cloud Computing they will not hesitate to go ahead and embrace the cloud and the leader will be under threat?
Traditional Technology Marketing
Traditional technology Marketing strategy will not work for cloud computing. Cloud computing is a utility and has to be marketed like other utilities namely electricity, broadband, water are marketed by the companies. The traditional technology cycle will not work for cloud adoption and cloud services sales.
A new fresh approach and an energized team is need to evangelize the user, since once the user logs into the service provider everything is digital including payment and deployment of cloud services.
Economic Value Added – EVA is a reliable financial measure of cloud benefits
If one applies the measure of Economic Value Addition to cloud computing one can see the financial benefits of the cloud. Other traditional models will not suffice to monetize cloud benefits. A selective approach is the key strategy to migration to the cloud, but one needs to define definitive outcomes and milestones for total transition with always the strategic & financial benefits as the final measure of success.
What Does Economic Value Added - EVA Mean?
A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). (Also referred to as "economic profit".)
The formula for calculating EVA is as follows:
= Net Operating Profit after Taxes (NOPAT) - (Capital * Cost of Capital)
A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit (adjusted for taxes on a cash basis). (Also referred to as "economic profit".)
The formula for calculating EVA is as follows:
= Net Operating Profit after Taxes (NOPAT) - (Capital * Cost of Capital)
Investopedia explains Economic Value Added - EVA
This measure was devised by Stern Stewart & Co. Economic value added attempts to capture the true economic profit of a company.
This measure was devised by Stern Stewart & Co. Economic value added attempts to capture the true economic profit of a company.
Credit : http://www.investopedia.com/terms/e/eva.asp©
Cloud is a Disruptive Technology
Cloud is a disruptive technology which and people resist “Change”; cloud is a great computing utility for business innovation and business excellence.
The adoption of Cloud will be easier from the Board Room rather than the C level decision makers in Business. Small and Medium Business owners will be the early adopters of Cloud computing from business.
The cloud service providers will need to position the cloud as a Strategic Enabler in the Business Boardroom and the first exercise is to educate the Board.
Conclusion
The above are some of the key concerns which have been raised in my evangelization journey, but the good news is that the crowds at the evangelization sessions are growing.
The cloud service providers, early cloud adopters and cloud evangelists should come together to take the benefits of the cloud to the uninitiated.
Please feel free to share your comments on this perspective.
The IT leader has a big problem about the IT team handling various data center related functions, what to do with them once cloud computing is adapted. This possibly is one of the strong reasons why clould computing adaption is slow.
ReplyDelete