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‘The cloud' to cease as a marketing label

Anuradha Shukla | Nov. 28, 2011
Success of cloud services possible if they permeate the sourcing strategies of the chief information officer and business unit manager, says IDC.

'The cloud' as a marketing label will cease to exist in the next 24 months, according to Chris Morris, lead analyst for cloud services at IDC Asia Pacific.

In the coming months, the cloud services will become successful if they permeate the sourcing strategies of both the chief information officer (CIO) and business unit manager.

In its report 'IDC Asia/Pacific (excluding Japan) Cloud 2012 Top 10 Predictions', the research firm predicts cloud services to become an everyday sourcing option for the CIO by 2015 and this will drive changes on both the vendors and users of cloud services and technologies.

The findings from the report indicate that less than half of the end-users across APEJ will complete their private cloud projects by 2014 and 20 percent of enterprise application spending will be cloud-sourced by 2015.

Also, infrastructure-as-a-service (IaaS) will become verticalised by 2013, and 90 percent of telecom service providers (SPs) in the APEJ region will have brought a broad portfolio of cloud services to market by the end of 2012.

"The use of externally sourced business and IT services from the cloud will form the basis of what we see as the Outsourcing 3.0 period, and will provide an extensive portfolio of services from which innovative solutions can be constructed," said Morris.

"With Outsourcing 3.0, the cloud will metamorphose into a universal service catalogue of individual cloud services. This will begin to replace both traditional information technology outsourcing (ITO) and business process outsourcing (BPO) engagements as well as on-premises infrastructure."

Challenge for the CIO

The cloud services have evolved rapidly and this evolution will continue as users further test the capabilities of the cloud services that are available.

IDC's report further indicates that the CIOs will face major challenges in the future due to the sourcing of business and IT services from multiple external suppliers.

Acting as a service broker and aggregator, the CIO will become involved in sourcing, integrating and managing the services on behalf of their business units.

This responsibility will prove to be a major challenge, as IT service management (ITSM) processes are not yet fully implemented for existing on-premises applications in most organisations in this region.

"The result for the CIO will be reliance on external brokers and integrators, and on external managers for their applications," said Morris. "For the IT organisation, their internal structure and capability profile will shift to address service management rather than technology management. This marks the beginning of a rebirth of the IT function to an organisation-wide business support function." 

 

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