I had an interesting situation last night that threw me back in time to my IT support days many moons ago – I had to be a firefighter, and I didn’t like it one bit. I had discovered that major changes to a web property that we had implemented earlier in the day had reverted back to an earlier state, and since the changes were applied directly to the vendor’s content management system, we had no rollback capabilities. Granted, the total time that could have been lost was only a few hours which is why we didn’t pay much attention to backups or other safeguards, but at a time when this company is going through a significant growth phase, every hour counts.
I was able to get back to the office, locate a cached version of the page in my Chrome browser, and reconstruct the content in about 45 minutes. This is where I came to an important realization about the impact of cloud computing on the IT organization – early in my career, this situation would have given me a huge adrenaline rush and made me feel like a hero. My boss would have praised me for my dedication and my troubleshooting ability. I would have been on a high until the next fire had to be put out. But this is a different time. These 45 minutes came at a significant opportunity cost – missing my son’s baseball practice. They also came on top of an already long and intense day. And in the grand scheme of things, they were 45 minutes that were not value adding.
It gave me a sick feeling in my stomach when I thought about how this 45-minute episode is by no means unique, and happens tens of thousands of times each day, across companies of all sizes. Thousands of hours each day are spent by IT resources feeling like they’re doing a great job putting out fires, but in the end contributing to little more than operational overhead. This is where cloud computing becomes a force multiplier – companies from small businesses to global corporations can leverage cloud services for exponential gains in operational effectiveness by shifting IT resources from firefighters to roles that provide direct value to the business. Managing servers (“boxes”), software versions, operating system patches, databases, etc. gets shifted outside of the walls of the company, and thus outside of the realm of internal IT; those headaches become someone else’s…someone else who specializes in providing a specific service better than anyone else in the world, including the internal IT staff. By shifting to cloud services, internal IT can focus on tightly integrating technology with business architecture, rapidly supporting new business opportunities with on-demand customer-facing systems that reduce the process friction that customers experience when doing business with you, and most importantly…taking all of that creative energy that was once spent in crisis mode and applying it to value-creating functions and initiatives.
I came across Jeff Kaplan’s recent post, Welcome to Cloud 2.0, and realized that the moniker has moved beyond just Marc Benioff and salesforce.com trying to own a new term and will probably start to stick over the summer as more cloud pundits and vendors begin to use it freely. My own thoughts:
- Was there ever a Cloud 1.0 to begin with? I don’t even think we’ve been able to agree on a taxonomy or definition for the cloud, but I do agree with Jeff’s assertion that the initial driver of cloud services was price and cost savings. Thankfully we’ve all become more creative in setting forth our value propositions.
- Does anything ever move beyond version 2.0 in the evolution of overarching technology terms and principles? As much as we joke about being somewhere around “Web 8.64″ in the versioning of the concept and term, “Web 2.0″ is still the nom de guerre for the once-new way of looking at web content and media…and it’s sounding extremely dated. Are we going to be stuck in “Cloud 2.0″ until the next seismic shift in technology, or can we work on a roadmap to get us to “Cloud 2.5″ or “Cloud 3.0?”
- Will “Cloud 1.0″ be considered a sort of purgatory for firms that haven’t made the shift even to the commodity cloud services that Jeff references? Do you have to go through “Cloud 1.0″ to get to “Cloud 2.0,” or will there be a sort of “catch-up effect” that allows slower adopters to leapfrog the 1.0 paradigm?
Thoughts?
Delivered Innovation CTO Michael Topalovich recently provided his take on the ebizQ Forum question: What Are the Biggest Downsides to Cloud Computing? From the Forum:
I’ll substitute “downsides” with “risks” because some of these may be viewed as half empty / half full arguments, but I see the biggest current risks as:
- Market confusion. As Peter mentioned, it is a mad dash to the cloud right now. And since nobody wants to feel left out, just about every company in the B2B tech space has re-branded itself as a cloud computing company. I’ve heard this referred to as “cloudwashing,” and the result is that companies will find it more difficult to find services specific to their needs, because of the tendency of providers to water down messaging into cloud buzzwords and ignore basic positioning and value statements.
- Cloud sprawl. With the rapid proliferation of cloud services, IT is struggling to adapt corporate service delivery strategies. The results that we have seen have included duplication and overlap of processes and functions due to services being provisioned directly by business units; loss of control of the billing for services because no single entity within the company is responsible for the procurement and management of them; and the equivalent of “shelfware,” a situation where cloud services are orphaned after the champion leaves the company or the business shifts focus.
- Lack of cohesive integration strategy. There is no doubt in my mind that the cloud model of service delivery is the one that we will adopt for at least the next 10-15 years of technology cycles, but until the integration of all of the pieces is thought through, the sum of the parts will never add up. My company has standardized our core service offerings around the Force.com platform from salesforce.com to provide the “glue” that holds all of the pieces together, and we “mash up” other cloud services into composite enterprise business systems through API integration, business process orchestration, and data integration using services such as Boomi. But if companies just provision cloud services for siloed requirements up and down the cloud stack (from infrastructure to SaaS), the disaggregation of these services will prove to be a value destroyer.

Edward Schlicksup of Delivered Innovation recently caught up with Quentin Gallivan, CEO of PivotLink, the leading provider of SaaS business intelligence solutions. PivotLink’s approach to business intelligence is a paradigm-shifting model within the BI industry. By combining advanced technologies like in-memory analytics, columnar data storage, cloud computing, a SaaS delivery model and unique methodologies, PivotLink helps organizations gain greater insight into the massive volumes of data increasingly at their disposal – in a highly secure manner.
Continue reading ‘PivotLink CEO Quentin Gallivan on SaaS Business Analytics and Cloud Computing’
What is Cloud Computing and how can it help my company?
Overview
Delivered Innovation and SilverTree Systems are teaming up to provide business executives with an informative overview and peer-to-peer roundtable discussion of Cloud Computing and how this leading-edge technology can be leveraged to achieve breakthrough business results. Topics to be discussed include:
- What Is Cloud Computing? How did we get here?
- How does “The Cloud” help me?
- Benefits
- Risks and Mitigation Strategies
- How does Cloud Computing change the way we do business?
- Time to market acceleration
- Business model enablement
- Who are the players in Cloud Computing?
- Amazon
- Google
- Microsoft
- Salesforce.com
- How do I determine my Cloud strategy?
- Customer case studies
- Adobe Systems
- Polycom
- School of Rock
- How do I get started?
All attendees receive a copy of Jonathan Sapir’s book, Power in the Cloud : Using Cloud Computing to Build Information Systems at the Edge of Chaos.
Seating is limited to 12 business executives, so order your ticket today to reserve your place at the table.
Agenda
Friday, February 19
8:00 – 8:30 Continental breakfast and networking
8:30 – 9:10 Michael Topalovich, Delivered Innovation
9:20 – 10:00 Jonathan Sapir, SilverTree Systems
Location
Regus Park Ridge Plaza
350 S. Northwest Hwy.
Suite 300
Park Ridge, IL 60068
About the Presenters
Jonathan Sapir is the CEO of SilverTree Systems and the author of Power in the Cloud : Using Cloud Computing to Build Information Systems at the Edge of Chaos.
Michael Topalovich is the founder and CTO of Delivered Innovation. Prior to Delivered Innovation, Michael was a senior IT leader with Siebel Systems where in 2003 he spearheaded the systems management team for Siebel CRM OnDemand, one of the first enterprise Software-as-a-Service (SaaS) offerings.
