Saturday, January 26, 2013

When it comes to the cloud, there is a huge gap between the business and the CIO

A recent survey on cloud adoption presents an interesting view of the perception gap between IT and business executives. Although the survey focuses on issues such as on-premise upgrades and availability of technical resources, the best stuff is buried in a single graphic.

Enterprise performance management vendor Host Analytics sponsored a survey (PDF download), by Dimensional Research, that describes certain drivers of cloud adoption.

According to the survey, the cloud alternative delivered better value--business: 80 percent; CIOs: 53 percent. Although the phrase "better value" is vague, most likely business people interpret this to mean "less expensive". This makes sense because many business folks see cloud as a means to bypass IT and purchase computing at lower cost. On the other hand, the data indicates that CIOs recognize that software alone is only part of the overall cost equation for enterprise technology

The survey highlights several important points for CIOs to consider, including:

Business buyers don't care about your IT agenda: As CIO, your technology focus includes a broad range of considerations that are of little direct interest to business executives. Most business folks don't care about your infrastructure, staffing, and efficiency concerns. They want feature rich applications that meet their specific needs. And, they want those apps cheap.

Business buyers have a tactical view of technology procurement: Their concerns focus narrowly on solving specific problems, perhaps without a long-term or strategic view of technology. The clear implication: address their specific needs without adding your back office constraints heavily to the mix. Find a way to handle your own constraints without binding users into solutions that do not accomplish their goals.

Users need education on strategic cloud benefits: Based on the survey, we can conclude that users do not understand that cloud benefits go far beyond lower cost. Both IT departments and software vendors must do a better job educating users on the innovation and business process benefits of the cloud. And, dear CIO, I must delicately note that your staff may also need additional education in this area.

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