How to Use Cloud Computing to Transform into a Service-Centric IT Organization

Cloud 3.0 as a business enabler

Cloud 3.0 is an enabler for business—it enables business users to source services that meet their needs quickly, at the right price, at a good enough service level, and on their own without the help of an IT organization. It will usher in innovations and breakthroughs at a pace and scope not seen before. It will introduce new threats in existing markets for companies and open new markets for others. Therefore, cloud is more of a business revolution than a technology evolution.

It would be unwise for IT organizations to focus exclusively on positioning themselves to adopt and implement cloud technology. Instead, an effective approach would be to focus on transforming the IT organization into a service-centric model, one that is able to source, integrate and manage services with world-class efficiency.

As with the original Chicken Little story, there are two possible endings:

Scenario No. 1: IT will ignore the fact that its role is being threatened and follow the fox to its den by continuing to focus on the delivery aspects of cloud. Even those that see virtualization, automation and/or private cloud as the end-state are at risk. As a result, many CIOs will be eaten alive, leaving their organizations to spend an ever shrinking number of maintenance funds while the business invests in innovation on its own.

Scenario No. 2: IT is rescued by the king's hounds in the form of transformation to the service-centric organization model and becomes the single sourcing control point for services in the enterprise. This will lay a strong foundation for embracing the next wave of cloud (or other) disruptions, putting IT in the driver's seat for fostering business innovation.

Keith Jahn is a Director in the office of the CTO for HP Software and Solutions. During his career as an IT practitioner, architect and strategist, Keith has successfully designed and implemented technology, automation, and service management strategies. He has also led several large-scale transformation initiatives. Keith has a passion for IT-led business effectiveness and has held leadership roles in IT and commercial outsourcing at several Fortune 500 corporations. He can be reached at keith.jahn@hp.com.