The typical pattern in terms of a business reaction to a slowing economy is to cut expenses, sometimes very deep. We all know that.
This is followed with a period of no net new expenses of any kind for an extended period. I was reminded by a colleague of mine recently of an experience we shared with our past CEO, during the period immediately following the dot.com bubble burst a decade ago now.
Our CEO said, "I don't care what it is, we're not adding back any expense for anything right now. Don't talk to me about investment until we start to see some growth around here."
In the recent past, we've seen the expense reductions. For most of 2009, we've witnessed the post reduction freeze cycle, where new investment cannot be separated from additional expense. It all looks the same when you've just gone through a period of heavy cuts.
But gradually business leaders realize that they can't remain there. That they will have to lean in and make some net new investments or run the risk of becoming stale and uncompetitive.
With 2010, we're beginning to see signs of a break out for businesses who are making some targeted investments. They're looking for very near term ROI opportunities (roughly a year, give or take).
A transition of your IT services to the Cloud can give you that immediate return on investment by lowering your costs, reducing your dependency on expensive resources as well as a speedy, non disruptive implementation of the new services.
Give us a call at TrueCloud. We'll show how this can be done in your business.
Dave Rice CEO, TrueCloud
www.truecloud.com
Tuesday, January 19, 2010
Tuesday, January 5, 2010
2010 Predictions for Cloud Computing
Happy New Year!
I'd like to kickoff 2010 with a blog that addresses the major trends that are unfolding in Cloud Computing:
1) The 2 to 3 year redeployment cycle to the cloud will begin it’s second year and will be in full swing, particularly amongst emerging and mid-sized businesses ranging from 5 to 500 employees. Businesses of this size that haven’t yet explored cloud-based alternatives will begin to feel the pressure of becoming more and more uncompetitive. Service providers will be much better at articulating their value proposition making them easier to do with business with moving forward.
2) The VAR Channel for the cloud will begin to emerge and become more prominent as businesses search for expertise to fill the gap leftover by providers who are understandably preoccupied with enhancing their product offerings.
3)Cloud Computing will begin to transition within businesses from a table stakes discussion to one of leveraging the new capabilities resulting in new practices, new roles and a repositioning of technology for businesses. The traditional role of a CIO will be revisited as the traditional nuts and bolts of IT diminish.
4)Use and adoption of Google Apps and Google Mail within businesses will be much more prevalent and the demand to integrate them with other cloud-based solutions (NetSuite and Salesforce) will increase dramatically.
5)The combined effect of more cloud, more mobile more video, and more social media all rolled up into one ubiquitous blur will create an explosion of collaborative offerings in the marketplace.
6)Green IT and the need to reduce carbon emission will become more of a driver for the adoption of cloud computing which is a more efficient use of servers, storage etc.
7)Cloud offerings suitable for the larger enterprise (infrastructure-as-a-service and storage-as-a-service) will see increased adoption by Fortune 500 companies across a myriad of industries.
8)More cloud adoption will give rise to more portfolio and services management, as businesses wrestle with how best to manage in an environment with multiple cloud vendors.
Dave Rice CEO, TrueCloud
www.truecloud.com
I'd like to kickoff 2010 with a blog that addresses the major trends that are unfolding in Cloud Computing:
1) The 2 to 3 year redeployment cycle to the cloud will begin it’s second year and will be in full swing, particularly amongst emerging and mid-sized businesses ranging from 5 to 500 employees. Businesses of this size that haven’t yet explored cloud-based alternatives will begin to feel the pressure of becoming more and more uncompetitive. Service providers will be much better at articulating their value proposition making them easier to do with business with moving forward.
2) The VAR Channel for the cloud will begin to emerge and become more prominent as businesses search for expertise to fill the gap leftover by providers who are understandably preoccupied with enhancing their product offerings.
3)Cloud Computing will begin to transition within businesses from a table stakes discussion to one of leveraging the new capabilities resulting in new practices, new roles and a repositioning of technology for businesses. The traditional role of a CIO will be revisited as the traditional nuts and bolts of IT diminish.
4)Use and adoption of Google Apps and Google Mail within businesses will be much more prevalent and the demand to integrate them with other cloud-based solutions (NetSuite and Salesforce) will increase dramatically.
5)The combined effect of more cloud, more mobile more video, and more social media all rolled up into one ubiquitous blur will create an explosion of collaborative offerings in the marketplace.
6)Green IT and the need to reduce carbon emission will become more of a driver for the adoption of cloud computing which is a more efficient use of servers, storage etc.
7)Cloud offerings suitable for the larger enterprise (infrastructure-as-a-service and storage-as-a-service) will see increased adoption by Fortune 500 companies across a myriad of industries.
8)More cloud adoption will give rise to more portfolio and services management, as businesses wrestle with how best to manage in an environment with multiple cloud vendors.
Dave Rice CEO, TrueCloud
www.truecloud.com
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