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Cloud is not a silver bullet

Evolution or revolution? Or maybe both? In an interview with SAP Spectrum, Mark White, CTO Deloitte Consulting, and his deputy William Briggs discuss why cloud computing is the next giant step in IT – and how it will revolutionize business models.

Experts say that the cloud represents a new chapter in how enterprises can better use IT. Why do they believe that?

— Mark White —

There are three broad answers to the question what companies want to achieve by using the cloud. Number one: they want economic advantage. In fact, you might say they have a preference for operating expense over capital expense or they have a preference against a large upfront payment. So cloud, particularly public cloud, offers the opportunity for preferring operating over capital expense and for having a monthly subscription over a large upfront capital cost.

The second answer is speed to solution or scale of solution. The head of HR might say I need the resumé screening site up next week, not three months from now. Doing that with the internal IT team can take weeks or months. But in the cloud, it only takes hours or maybe days to go from identifying the need to identifying a service provider. As for scale of solution, there are actually two parts. In one I can pilot, test, or try out my new HR resumé sourcing system in a limited fashion with the external cloud provider. If it goes well, I can scale it up to the full scale and scope of my business demand. The second part is the global perspective. For example, it could be that I have quite a sophisticated IT capability in Germany but need a working group to do business in the Czech Republic, where my company’s IT capability just doesn’t manifest well. So what you are finding in some companies is that they’re going to a cloud to provide services for the remote, less developed, or emerging markets of their organization.

The third answer is efficiency of resource. Let’s use an SME example. SMEs are the most aggressive and complete adopters of public cloud services today because in the cloud they have access to solutions at a level of sophistication or capability that they can’t afford to implement internally.

Read more . . . . Cloud is not a silver bullet

Have any questions? Visit the Deloitte South Africa cloud computing website and speak to our specialists

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