by Barbara Rembiesa, CEO of IAITAM
Organizations that chose to “go to the cloud” do not necessarily bring about dramatic savings and IT efficiencies that outweigh or eliminate the need for asset management. In fact, the adverse effect may be the case based on the added risk surrounding data security, access, data transfer and backup along with agreements that include terms that are unclear or misunderstood by parties unfamiliar with this new licensing model. This in turn may lead to an increase in resources at every level.
Cloud computing is the newest trend in software licensing, but truly the base model for cloud licensing has existed for some time. It’s a new twist on a billing model that has existed since mainframes came into existence -- capacity based computing. The difference in this new model is the vast array of service providers, complexity in licensing schemes and of course the formidable drive aimed at taking more of a share of your organization’s IT budget and creating a reliance on outsourced service providers.
There is much debate in the marketplace on savings opportunities based on migrating to the cloud outside the enterprise. Most CXOs say that the cost savings are extremely important when considering migration to the cloud. Based on IAITAM research though, few companies have realized the projected savings. This could be attributed to poor pre-planning for the implementation, failure to calculate true ROI, or simply the savings are not there.
Many cost factors not considered are:
Instead of looking at the terms of the agreement for your savings, take a long look at your business needs and what drives your business. Are you looking purely for financial savings and a reduction in IT overhead? Are you looking for increased productivity? Are you looking to mitigate risk from internal unmanaged assets?
Let’s take a closer look at items to consider for those three business drivers:
The above obviously is not a full list of requirements when considering moving to the cloud but, instead, a few thinking points to allow you to build a full list to incorporate into your return on investment calculations.
In a dream world, everyone could move to the cloud and find tremendous savings and never have any down time; but remember, just like software applications, there is no silver bullet or one-size-fits-all solution.
Review your environment, your goals, and your business drivers before making any decision on changing your technology, because as many have discovered in the current environment, without the aid of modern technology your organization will cease to exist.
Before founding IAITAM, Barbara Rembiesa held key positions in both the financial and consulting sectors. Barbara has implemented and supervised asset tracking projects, discovery tool implementations and has been brought in as an industry expert to consult major savings and loans, universities, manufacturers and high tech industries throughout the United States. Barbara has also, successfully represented corporations in negotiations with compliance agencies for software violations. Barbara has implemented and designed disaster recovery programs for professional software testing and storage facilities including, but not limited to, off-site storage facilities, and has helped over 200 companies before forming IAITAM and successfully implemented improved software and hardware acquisition programs.