Four Cloud Trends on the CIOs Radar

Friday, August 26, 2011

Bill Gerneglia


Article by Tom Sheehan

There is continuing innovation in today's  Cloud Computing service offerings.  So where should a CIO primarily focus their attention? The answer is straightforward according to an IDC analyst speaking at a recent CIO Summit in Australia.

IDC analyst Chris Morris said there are at least four trends to keep on the CIO's radar at all times. These include a scaling of services; data center transformation; big data provisioning and a consolidation in vendors.

According to Morris, Outsourcing 3.0  is all about services. In particular, this is about integrating services for mobile devices, applications and information analytics.

The CIO’s view about outsourcing is changing. We talk about this internally quite a bit.  ”Services,” for example is a double entendre. It has multiple meanings but carries the same context.

IBM is a services provider, offering manpower for technology integration. But it also can mean that the service provider builds their own data centers to offer  a suite of services. Tata and CSC are both building data centers to offer this new form of services.

For Morris it means that the cloud will be just another tool in the tool kit. It is not just a place to move your infrastructure. It has to be a place where services are continually made better.  That means service management plays a critical role. This is a huge battleground for vendors like  HP and IBM.

Data Center Transformation: CIOs are feeling the stress of virtualization. The goal is to have more than 100 VMs on each server by 2012. That’s putting stress on the network and storage infrastructures which look increasingly outdated. The CIO needs to consider the impact of this stress and the need for upgrades to the architecture.

Big Data Provisioning: We hear about big data all the time but what impact will it really have? Morris says it will come down to how big data is provisioned. It’s the public cloud services that are buying up the disk storage. They have instant, on-demand access to storage. Those providers will have the best prices and the most sophisticated capabilities for managing modern applications.

There will be accelerated supplier consolidation as the big data provisioning issue will lead to vendor consolidation.

According to CIO Australia:

“By 2015 public Cloud will probably be more important than virtual private Cloud because those security and reliability levels will have come up and there will be 80 per cent of new applications developed for public Cloud,” Morris said.

There will be a change in job requirements for organizations. More services means more technology requirements. The greatest demand will be for people with technical skills. He says there will be a mix in the IT organization of 80% technicians and 20% managers.

In consideration of what is means to be services oriented CIOs need to consider we are in the middle of fast moving transformation to a services world. The CIO in many ways has to consider what it means to engage in a market that is less about solutions and more about outsourcing to services providers.

Is your CIO paying close attention to these transformations?

Cross-posted from CIO Zone


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