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Enterprise Cloud Inevitable?

July 22, 2009 by Raj Sheelvant

In the Enterprise Systems article “Why Enterprise Clouds Are Inevitable” by Stephen Swoyer, the author tries to re-classify andquestion cloud redefine cloud computing.  Quoting Stephen Elliot, vice-president of strategy with CA Inc, the author evaluates if the cloud computing is a hype or a disruptive IT infrastructure that will challenge current Enterprise IT model.

This is the new definition according to the article: Cloud computing is a conceptual refinement of pervasive virtualization. Therefore, the cloud model is an inevitable consequence of pervasive virtualization. In other words Enterprise Cloud is virtualization, with a business-centric mindset. Stephen elaborates by saying that in the Enterprise Cloud or a private cloud model, customers don’t purchase capacity from IT. Instead they purchase services. In this model, the customers will not pay IT to host their applications (or services). But the payment will be based on expectation of certain definite service.  This is the paradigm shifting in a way Enterprise Cloud can be defined.  It’s no longer software-as-a-service but it is business-process-as-a-service.

Once the vendors begin to highlight the accountability and advantages Cloud computing in a ‘business-process – as – a – service’ model, the customers can now accurately calculate financial ROI of adapting Cloud computing.   That would be the tipping point when pervasive Enterprise cloud would becomes reality.  There is still some apprehension around the viability and security of cloud computing.  But as the computational cost continues to move downward and as it becomes too cheap to meter, then financially it will be enticing for the organization to cross the ‘chasm’ and adapt Cloud Computing.   I think it’s a matter of time before it becomes a norm for organization to take advantage of ‘Enterprise Cloud’.

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Related posts:

  1. Cloud Computing – Game Changing Technology?
  2. 10 things to know about Cloud Computing Strategy
  3. Indian IT Outsourcing and Cloud Computing
  4. PaaS: Platform in the Cloud?
  5. Future of Enterprise Application

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Raj Sheelvant has more than 15 years of varied experience in the field of Information Technology and is passionate about aligning IT with Business needs.

Raj strongly believes that IT can be leveraged to create, sustain and enable Business Strategy. This is a blog that demonstrates value added by IT to the Strategy

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