By David Linthicum, Cloud Computing Visionary and CTO,
Cloud Technology Partners, InfoWorld
Agility is tied to so many other things, that its true significance is getting diminished. Contemplating cloud calculating’s speed-to-market and ability-to-change advantages, it is not surprising that agility has attached itself into cloud computing.
On the other hand, the actual ability to change IT systems inside the enterprise comes down to dollars. When a request is made to alter specific IT providers, like an application, the analysis of the price and benefit of that change can significantly delay the procedure. That procedure can kill any possibility the enterprise has to get agility from new technologies, such as cloud computing.
Life without agility could indeed destroy a business, and includes the following consequences:
- Time to Value / Business Impact — The inability to become necessary IT solutions into production directly affects the business enterprise. CEOs can buy businesses that’ll be strategic to the organization. R&D can alter IT to retool for new products, and it takes a year or more to bring a new product to promote.
- Self-Servicing / Shadow IT — Lines of Companies (LOB), sick of waiting patiently for their answers to be executed by IT go directly to the origin. They leverage cloud-based SaaS and IaaS programs on their own, and originally work around enterprise IT. Sooner or later, IT must assume the solution, which actually forces the LOBs away their tactical path.
- IT not a Value Driver — IT needs to drive worth within an enterprise, plus they need to consistently prove their worth. Today, IT drives prices, and their single route to value would be to drive more agility.
Agility is the normal core company worth of cloud computing. TCO (Total Cost of Ownership) comes into play, but it is usually greater than expected, when all costs are considered over the long term.
The yield on agility could be computed, and I’ve successfully done so several times. You simply need to do very deep analysis about the company to comprehend the behaviours and metrics over time. Most people who develop a business case for cloud computing — or some other new technology or approaches, for that matter — don’t bother with the deeper analysis as it is both hard and complex.
A vital component in the ability to become agile is the ability to support the right changes in the “rate of demand.” This usually means providing immediate budgeting and forecasting to support immediate value assessment. Using this info, IT can obtain access to instant cost forecasting and estimation that will support the value debate for the extra resource expenditures.
Therefore, so as to be agile, you must offer the ability to become more agile. Lack of visibility into key price metrics means that we cannot comprehend the true significance of leveraging new solutions, nor gauge the impact they’ll have on the small business. With this immediate visibility, funding can’t be provided quickly enough to support the small business.
The call to action will be to set up systems within your organization offering the level of visibility you want to specify the worth of IT change, for example, motion to cloud services. We need to comprehend the company situation at a rate that doesn’t hinder agility.
Want to learn how to do so? We are going to be delivering a Webinar titled ‘Placing a Price Tag on Cloud Agility’ on Thursday, October 1st at 10:00am PT / 1:00pm ET. You can register here. We are going to let you know about the worth of agility, how to understand agility from the context of your own organization, and how systems that provide immediate visibility into the value drivers may make sense for the organization.