A funny thing happened while we in IT were focused on ITIL, data center consolidation and standardization. The business went shopping for better technology solutions. We’ve been their go-to department for technology since the mainframe days and have been doing what they asked. When they wanted higher SLAs we invested in high availability solutions. When they asked for greater flexibility we empowered them with client-server, application servers and now virtual machines. All the while they have relentlessly badgered us for lower costs and greater efficiencies. And we’ve given it to them. And until recently, they seemed satisfied. Or so we thought.
Sure, we’ve tolerated the occasional SaaS application here and there. We’ve let them bring in Macs (just not too many of them) and we’ve even supported their pesky smart phones. But each time they came running to us for assistance when the technical support need grew too great.
Enterprises are increasingly turning toward cloud deployment models (including SaaS, PaaS, IaaS, etc.), attracted by promises of fast deployment, lower upfront costs, and greater elasticity in pricing and consumption models. This trend has been further fueled by resource constraints (capital and people); cloud solution maturity (sophisticated functionality, customization, and integration); and “empowered” workers (seeking DIY technologies to drive business results). However, the growing use of cloud technologies creates new challenges and questions in areas like TCO, security, support, and vendor management.
Enter cloud sourcing. Cloud sourcing typically refers to a model where third parties play a broker and consulting role in helping firms leverage the cloud strategically across business applications.
Cloud sourcing provides alternatives to traditional outsourcing, packaged application implementation, and application development. Cloud sourcing spans applications, utilities, and services. Cloud sourcing strategies include both the use of cloud applications such as salesforce.com and Workday to deliver business applications as well as the sourcing of complete managed processes via cloud applications plus associated services, such as offerings from Capgemini and Wipro.
Forrester will be part of an upcoming panel at Global Sourcing Forum in New York City on October 13 that discusses key elements of and considerations for cloud sourcing, including:
• How strategic sourcing decisions can include cloud-based solutions.
• What SaaS, Paas, IaaS, and BPO mean in the cloud context.
• Practical lessons and best practices for adopting cloud solutions.
• Challenges with cloud sourcing and how to overcome them.
• Emerging providers and solutions for cloud sourcing.
On September 15th between 11am-12pm EDT Forrester held an interactive TweetJam on the future of cloud computing including Forrester analysts Jennifer Belissent, Mike Cansfield, Pascal Matzke, Stefan Ried, Peter O’Neill , myself and many other experts and interested participants. Using the hashtag #cloudjam (use this tag to search for the results in Twitter), we asked a variety of questions.
We had a great turnout, with more than 400 tweets (at last count) from over 40 unique Tweeter’s. A high level overview of the key words and topics that were mentioned during the TweetJam is visualized in the attached graphic using the ManyEyes data visualization tool.
Below you will find a short summary of some key takeaways and quotes from the TweetJam:
1. What really is cloud computing? Let’s get rid of 'cloud washing!'
I will be joining Forrester's Tweet Jam on Cloud Computing today to add some commentary on the differences we're seeing in attitudes toward "cloud" as a delivery model and in adoption across countries. Interest and adoption differs significantly across countries. While in most countries the primary drivers of both Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS) are around speed and flexibility, in others the primary drivers are cost. Interestingly, in India and Russia, the No. 1 driver for IaaS is "improving disaster recovery and business continuity." IT decision-makers in those markets prefer to rely on those focused on delivering infrastructure than on their own datacenter, for certain projects.
As for inhibitors, the main concerns are pretty common across countries: security and privacy issues, integration with existing infrastructure and applications, and uncertainty around to total cost of ownership. While many are driven by the desire to move from fixed cost to rotating costs (capex to opex), they remain concerned about the total costs in the long-run.
Have questions about cloud computing and the top challenges and opportunities it presents to vendors and users? Then join us for an interactive Tweet Jam on Twitter about the future of cloud computing on Wednesday, September 15th, 2010 from 11:00 a.m. – 12:00 p.m. EDT (17:00 – 18:00 CEST) using the Twitter hashtag #cloudjam. Joining me (@hkisker) will be my analyst colleagues Mike Cansfield (@mikecansfield), Pascal Matzke (@pascalmatzke), Thomas Mendel (@drthomasmendel), and Stefan Ried (@stefanried). We’ll share the results of our recent research on the long term future of cloud computing and discuss how it will change the way tech vendors engage with customers.
Looking through the current industry hype around the cloud, Forrester believes cloud computing is a sustainable, long-term IT paradigm. Underpinned by both technology and economic disruptions, we think the cloud will fundamentally change the way technology providers engage with business customers and individual users. However, many customers are suffering from "cloud confusion" as vendors' marketing stretches cloud across a wide variety of capabilities.
To help, we recently developed a new taxonomy of the cloud computing markets (see graphic) to give vendors and customers clear definitions and labels for cloud capabilities. With this segmentation in hand, cloud vendors and users can better discuss the challenges and benefits of cloud computing today and in the future.
Recently, I published a report about a small software-as-a-service (SaaS) vendor, Dimdim, which is having success in the crowded Web conferencing market. Like many small vendors, Dimdim provides a free service tier, generously allowing up to 20 participants into the free meeting, to help drum up business. The report, though, did not simply highlight the number of users that Dimdim has captured in four short years of existence -- over 5 million -- but also its success in attracting partners like Intuit, Novell and Nortel CVAS. Why? For new vendors entering crowded markets, attracting partners is vital for two reasons:
Partners open doors to new markets. In crowded markets, incumbent vendors and new entrants jostle to serve customer needs. For the new entrants, the customers that can be wrangled through media hype and analyst buzz is minimal. Mass appeal comes from firms with strong working relationships with a range of buyers in a number of markets -- e.g., oil & gas, healthcare, government -- embracing a small vendor's offering and introducing it to their clients.
It’s no secret traditional news organizations are struggling to stay relevant today in an age where an always-connected generation has little use for newspaper subscriptions and nightly news programs. The Associated Press (AP), the world's oldest and largest news cooperative, is one such organization who has felt the threats which this paradigm shift carries and thus the need to intensify its innovation efforts. However, like many organizations today, its in-house IT Ops and business processes weren’t versatile enough for the kind of innovation needed.
"The business had identified a lot of new opportunities we just weren't able to pursue because our traditional syndication services couldn't support them," said Alan Wintroub, director of development, enterprise application services at the AP, "but the bottom line is that we can't afford not to try this."
To make AP easily accessible for emerging Internet services, social networks, and mobile applications, the nearly 164-year-old news syndicate needed to provide new means of integration that let these customers serve themselves and do more with the content — mash it up with other content, repackage it, reformat it, slice it up, and deliver it in ways AP never could think of — or certainly never originally intended.
A startup, who wishes to remain anonymous, is delivering an innovative new business service from an IaaS cloud and most of the time pays next to nothing to do this. This isn't a story about pennies per virtual server per hour - sure they take advantage of that- but more a nuance of cloud optimization any enterprise can follow: reverse capacity planning.
What is the opportunity for Microsoft partners (or other VARs, SIs, ISVs and technologists) in the emerging cloud computing space? Don't think of cloud as a threat but as an opportunity to ratchet up your value to the business my evangelizing and encouraging their transition to the cloud. How? At the recent Microsoft Worldwide Partner Conference I addressed this issue in an Expo Theater presentation. Missed it? Now you haven't: