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“Does cloud computing represent an IT change, or a managerial revolution? We believe that the answer is both. The cloud changes the way IT professionals will work, and the kinds of jobs they will have. But it also brings a fundamental change in how managers think about business, coordinate tasks and people. Fingar points out that “in a process-managed enterprise, command-and control leadership gives way to connect-and-collaborate, where every member of a business team is a leader. It’s about acting on opportunities, and letting others lead the leader when they know best about stuff being done (…). Although the Cloud enables radical change, the culture of the firm will determine the outcome. Permission, risk tolerance, cultivating lots of small bets – these are some of the earmarks of a Cloud-oriented business culture” (Fingar, 2009).

Bento and Bento, “Cloud Computing: IT Change or Management Revolution?”, 2010 Oxford Business & Economics Conference Program

For business and IT to adopt and benefit from what cloud computing has to offer, business and IT management thinking about IT needs to markedly change. The changes recommended by The Corporate Executive Board are below (Figure 2). In addition, Peter Fingar (executive partner in the business strategy firm, Greystone Group, is one of the industry’s noted experts on business process management ) adds that business process management and the standardization and optimization of business processes is a key to externalizing the business functions to take advantage of cloud computing.

SEE FIGURE 2

Companies able to change and benefit from cloud computing will find:

1. Fixed costs associated with IT investment diminish. Costs switch to be operating expenses and become variable.

2. On average a 75% reduction in IT personnel. Many roles become commoditized and move to the cloud computing vendors.

3. IT knowledge workers are embedded in the business units (increased business alignment), while common IT services are moved to a shared services IT organization.

4. Business unit leaders and end users will play a greater role in obtaining and managing technology for themselves.

5. IT function and the CIOs refocus on business strategy, customer enablement and business innovation

6. Much more nimble and assertive business units able to quicker and more efficiently differentiate their products and services from competitors.

7. Innovation – ability to rapidly deliver products and services that convert ideas into revenue.

Summary
Since we believe that the emergence of cloud computing will be a ground change for IT and a highly disruptive business event, we believe that a strong information resource needs to exist that will provide CEOs/CIOs with knowledge and practical experience in transitioning and operating in the world of cloud computing (software and platform as a service. Development of a Cloud Computing voice is necessary.