A story

"It seemed to be a no-brainer. We could swap out our clunky home-grown system and be up and running in days with a new CRM solution. Better still, we didn’t need to deal with our internal IT department who just ‘love to say No’.

 

The business case stacked up. We did all the background checks on the vendor’s website and made some reference calls to clients in similar businesses to our own. Getting access to the service was really straightforward and the vendor’s support team was first class.
So where did it all go wrong? 

 

One of our major Government customers performed a routine audit and discovered that the data held on them in our new CRM system, which we proudly showed them, is held on servers outside the country.  And this breaches some law or policy or something.  They didn’t give us specifics.  But they were very clear about the consequences. We’ve been struck off their Preferred Vendor List, destroying 5 years of hard work and investment by our Public Sector team. The team is now suicidal."

 

Cloud Computing is in vogue

Cloud Computing is the in-vogue name for the model of providing software from a remote location, over a network, where the organization using the software does not have to be involved with the day to day running of it. 

 

It clearly has great benefits, but also comes with risks. But not all the risks are that obvious hence the need for this book. But first we need to agree some definitions.

Originally the generally accepted term was Software as a Service. The use of the word service was based on the association with other “services” that we just use without being concerned about the complexities behind the scenes e.g. the telephone, the supply of electricity, the use of our Visa card.

 

As more people have started writing about and promoting the approach there has been an explosion in acronyms making it difficult to differentiate between SaaS, PaaS, S+S, DaaS, ASP, On-Demand or Utility.  So this book uses “Cloud Computing” which seems to be the umbrella term that is gaining traction and is being used almost universally. The new term is based on the services being provided by servers which are in the Cloud.

This book is not technical, nor was it ever intended to be.  It is aimed squarely at those who see IT as a utility that should be consumed to serve the business.  Not the reverse.

 

Chief Executive Officer
As CEO you are responsible for the overall performance of the business. That means setting strategy and that includes considering Cloud Computing. You can probably bet that your business managers or IT team are looking at it as an option to increase availability, increase flexibility or reduce cost.

 

Chief Executive Officer of a start-up
You are probably looking at Cloud Computing as a way of delivering all your IT systems. But is it the right long term strategy? What are the risks inherent in this strategy?  Will it support or hamper your speed to market and your long term growth?

 

Chief Operations Officer
Cloud Computing could change the way you run the operation.  It could give you more freedom. It could enable remote working which will reduce travel costs, improve your carbon footprint, reduce staff churn, – or possibly it will just make the place even more difficult to run.

 

Chief Finance Officer
They say Cloud Computing is cheaper. So it sounds like a no brainer.  Or is it? As CFO you are also expected to safeguard the company from a risk and governance perspective.  How do you balance the potential cost savings vs. the other factors?

 

Chief Information Officer / Chief Technical Officer
Cloud Computing is squarely in your court.  But just because you are responsible for IT strategy for the company doesn’t necessarily mean that you understand the all nuances of Cloud Computing.  But you do need to understand enough to be able to manage major projects.

 

Sales Director
Your people are constantly on the road and don’t or won’t update customer and sales records. They are using the excuse that they can’t access your customer system unless they are in the office and Cloud Computing seems the perfect answer. Perhaps too perfect?

 

Services Director
You have similar problems to the Sales Director.  Your delivery consultants are either at clients or at home. Rarely in the office, they need access to customer information whilst on the move.  So is Cloud Computing the only option? And what are the trade-offs?

 

HR Director
Cloud Computing will enable you to work in very different ways. As an organization you can be more flexible and responsive. But are these benefits achievable with current HR policies and practices. How much do they need to or are able to change?

 

Line of business manager
You’ve seen the system or service which fits your business needs perfectly. It is available right now, which is far, far faster than your internal IT can normally deliver. The pricing is compelling, within your sign-off limits and can come out of budgets that do not require IT sign-off or protracted procurement.  In short – you want it NOW.

Cloud Computing is evolving at a great pace.  Some would say maturing.  But the shape and scope is still not clear and the potential is still largely untapped. We see Cloud Computing driving business transformation in corporations, in a way that mirrors the changes in behavior that we’ve already seen in consumers. The era of "any place, any time, anywhere" is being ushered in by stunning, innovative Web2.0 applications running on highly scalable infrastructure powered by the IT heavyweights.  The final piece in the puzzle is reliable connectivity.

 

The potential of launching new companies or new ideas, delivering exceptional business value is staggering. And the speed that they can be brought to market is like nothing we have seen before. In a world where unlimited finance is no longer available, the ability to scale a company is not necessarily directly tied to working capital.  These new solutions will help established corporations transform and free their employees from the daily commute to offices with desks, computers and internal systems. Maybe it is too much to hope that this will reduce global warming and enable people to get the work-life back in balance.  But it is a good start.

 

But with any change there is risk. Financial risk, business risk, reputational risk. Risk is not bad. It comes with the territory.  What is bad is unrecognized and unmanaged risk. That is why this book is so valuable.  It is the list of places to look for risk.  Reading it may make you feel depressed about the potential of Cloud Computing and scared of even approaching it.  That is the wrong reaction. The beauty of this book is that it lists all the concerns that you could possibly have – although not all of them will be relevant to your situation.

 

Ian and Stephen have pulled together a great book on the subject of purchasing Cloud Computing and brought it to life with some fabulous anecdotes. My plea to you is to read the book, think carefully about the smart questions and use them to make equally smart decisions in your organization. And make sure that you are not one of the horror stories in the next edition of the book.

 

Darren Bibby (Program Director, IDC Software Channels Research)

IAN GOTTS Founder and CEO of Nimbus, which has been offering their process management solution as a Cloud Computing offering to major corporations for the last 4 years. This was a transition made from the traditional model. Now over 70% of new clients have used the Nimbus service including Toyota, SAP, Cognos, Nestle, HM Revenue & Customs and HSBC Bank.  He is author of 3 books, Common Approach, Uncommon Results and Why Killer Products Don’t Sell and Thinking of… Buying a Cloud Solution? Ask the Smart Questions which makes him a sought after conference speaker. He is an active investor in technology companies which make business sense.		ian@iangotts.com
STEPHEN PARKER  A business executive, with over 20 years experience of taking critical technology investment decisions and delivering solutions on the leading edge of IT in large enterprises, “.com” start-ups, and business turnarounds.  His recent journey of turning around a struggling ERP vendor into a leading Cloud Computing business in the eProcurement space and taking this to a trade sale has added scars and knowledge in equal measures.  His down to earth approach, backed up by real-life experience provides him with a rare insight into the world of Cloud Computing.  He is author of Thinking of… Buying a Cloud Solution? Ask the Smart Questions and consults to companies considering Cloud Computing and to analyst firms focused in this space.		stephen.parker@customrm.com

Cloud Computing is a new business model that requires new thinking for our customers. How they architect the solution, how they secure the applications and how they federate their on-premise computing with the cloud are all extremely critical success factors for Cloud Computing adoption.  Ian and Stephen have done a great job of exposing the questions that our customers need to be asking their cloud services vendors to ensure a successful project.
Shannon Day, Marketing Manager Software plus Services, Microsoft

www.microsoft.com

 

This is one of the most valuable and informative technology books for professionals that I have read. Finally the mystery of “Cloud Computing” has been solved. This is a must read for anyone in IT or in a management position within a business that is considering or wants to know the straight facts about Cloud Computing. A good common sense review of what Cloud Computing is and is not, coupled with a detailed list of questions to help you decide on the right approach for your particular needs.
Toby Tarczy, Managing Director, Cavella

www.calvella.com

 

This book parts the clouds on an exciting and inevitable evolution of information services and the way we work and play. It reminds all of us that the devil is in the detail and that the benefits to be realized, which are many, are won through effective planning and preparation and the effective execution of the implementation plan. Above all the book is practical, insightful and pragmatic. It will look strangely familiar to anyone experienced in managing change in systems and organizations. A valuable resource for all stakeholders as its cuts through the mystery and explains it in plain language.
David E Alexander, Managing Director, Solutions Make The Difference

www.solutionsmtd.com