The CIO Function Transformed
The CIO function transformed
With no more daily management of multiple vendors, no more watching the budget anxiously and with the IT budgets predetermined, it is now for the major vendor to figure out how to achieve a balance, not for the CIO. The CIO will operate a daily dashboard, monitor service-level agreements (SLAs) and performance of applications, and share this entirely with the vendor.
The CIO will receive a single consolidated bill at the end of the month, incorporating usage of IT applications and infrastructure that month, penalties and rewards determined by SLAs. The CIO's focus will then shift to ensure that the internal customers use IT optimally, driving down the waste relentlessly.
At the same time, the CIO will work with them to "make do with less" while keeping eyes open to any new applications which genuinely confer competitive advantage or cost savings by reconfiguring business processes. In this new world, the CIO will end up working more closely with business units, with much better understanding of the interface between IT, operations and sources of competitive advantage in the business.
And service provider too
This is not the end of the world for application software companies-they will just need to sell to the cloud providers and not the CIO. Software service companies, who today build applications (sometimes offshore) for these application software companies, will end up providing a different set of services now-optimizing software products for the cloud, engineering them for performance, building them as quickly as older applications are jettisoned by the cloud provider, certifying them to be cloud-ready, building usage meters and dashboards, and so on. The world will not end-just change rather drastically.
Dr. Anand Deshpande is founder and CEO at Persistent Systems. Anand is responsible for overall leadership and management, and drives the sales and technology efforts. As an active member of the database community, Anand was responsible for hosting VLDB 1996 in Mumbai and ICDE 2003 in Bangalore. Anand has actively participated in program committees of various international conferences. Anand is also a member of the IEEE, IE (India), CSI and YPO. Anand is currently the co-convener for the Association of Computing Machinery (ACM) India Council, serves on the Executive Committee of MCCIA, and is the Chairman of CII, Pune zonal council. Anand has a B.Tech with honors in Computer Science and Engineering from IIT Kharagpur. Anand has a Masters in Computer Science and a Doctorate in Computer Science from Indiana University at Bloomington (USA). He can be reached at firstname.lastname@example.org.
Dr. Ashok Korwar is a management consultant focused on helping small-to-medium companies grow to the next level. Since 2000, Ashok has been advising several companies in Chennai, most prominently Polaris Software Lab where he has been strategic advisor to the Chairman. Ashok now works with several companies in this scale in Bangalore, Pune and Delhi. Before coming to Chennai, Ashok was a Professor for ten years at IIMA (Indian Institute of Management Ahmedabad). Ashok has coordinated several management development programs, including the MEP, and served as Chairman of the MBA (PGP) program. Ashok's book "Creating Markets Across the Globe" won the Escorts/DMA award for best management book in 1997. Ashok was a member of the Strategic Management (Business Policy), Finance, and International Management areas at IIM, Ahmedabad. Ashok is based in Pune, and holds a Ph.D. in management from UCLA and a B.Tech from IIT Mumbai. He can be reached at email@example.com.