CIOs and IT executives have a lot of trends to discuss. What is the latest technology? What is temporary or promising? When should I invest in technology? How can it help my business to succeed? IT technologies are not just about running the business, they are also creating a more competitive differentiator, which affects business performance.
A frequent topic of discussion among CIOs today is related to cloud services. Practices on the cloud constantly evolve and its adoption as a viable technical paradigm is still a work in progress, although we have made tremendous progress in the quality of services. The Internet, which is probably the ultimate cloud, is a vital channel of information flow in the daily life of each person. However, is this public service so bulletproof that all companies can run on it with the whole reliability?
Cloud computing is still going through different maturation levels that makes it difficult for small and medium businesses understand how to leverage the cloud. Hence the widespread adoption is still lagging.
Whatever idea we’re talking about today, Cloud computing or Enterprise resource planning systems, it really makes business processes more effective and profitable. Hypothetically, we will reach the point where the cloud is like a plane that takes you to the destination, but you do not need to worry about how to aviate. So, what about the cloud and its impact on the current economic industry?
In a normal economy, companies base their spending habits against their projected revenues and profitability, but in a recession, many companies find themselves with exaggerated forecasts and IT companies had to overspend. Because of this, fixed IT costs have been downsized in recent years.
A lesson that was learned by CIOs and support organizations in general, is that IT costs should be re-calibrated to match more quickly this time of instability. To do this, new technologies should be used to support the expensive infrastructure, without having to commit to long-term fixed operating costs. With cloud computing the variability comes that can help reduce IT operating budget. It allows concentrating on new business products or services that could make money rather than building things in the house.