Sourcing from the cloud: The must have capability

For IT managers and leaders cloud sourcing capability is the new must have.

For IT managers, the availability and growth of cloud service solutions has vastly altered the landscape of the traditional IT service function.

Cloud sourcing is having a major impact on both businesses, vendors and IT support organisations. Major enterprises are transitioning from building and hosting IT to consuming IT services from the cloud.

The old organisational models and a material portion of the IT resources that came within them are now moving toward cloud based service delivery environments.

The challenge of change

Many businesses and larger enterprises are still using models of IT development and service provision (SDLC, ITIL etc) but the external technological world has moved on.

The old approach, recommended and fostered by many of the major consulting and support firms, by its very nature was inward looking, it was locked into an out dated, long winded, build it, configure it, and support it yourself approach.

The model has now changed, not once, but twice, first to cloud as a service; (SaaS, PaaS, IaaS), which then released the opportunity for full ITaaS, and some of the world’s major players are looking to get in on the action.

The impact of passivity in today’s fast moving market

Without reforming the old IT delivery function into a new commercial sourcing and service style operation, organisations will lose the advantages of future cloud based market disruption. The market forces driving inertia and delivering innovation, are also driving down service acquisition and delivery costs.

Not to understate it, the traditional IT organisation and its service delivery and management based approach is over. It was a ponderous follower, and not a potential leader able to take strategic advantage of the external IT market changes that the cloud delivers.

It was not an active, fast moving, cloud sourced, resilient: a ‘source and provide’ organisation.

The cloud sourcing function

This new cloud based IT landscape fundamentally alters the IT function within organisations.

As the spread of ITaaS expands the key to success is an organisations ability to quickly identify, source and efficiently consume these services.

The old bespoke on site design, develop, build model is no longer capable of retaining competitive advantage.

Simple economics tells us that whilst these new service providers are innovating and fighting for market share the range of services to source will increase, and the price for all ITaaS services will continue to drop. Leave the costs of all that innovating to the market place.

Taking advantage of this new market disruption calls for new operational models, new skills, and a different knowledge set.

When responding to a Gartner survey, 100% of mid-market US firms stated that that their second most important cloud issue apart from transition’ is their ability to manage multiple cloud suppliers’ that problem will only to increase with expanding multiple sources of supply and the use of out-dated IT operating models.

Will my users want cloud based services?

Recently whilst sat waiting for lunch I watched a 6-year-old next to me use his i-pad to build a ‘farm’ within around 6 minutes, then I watched as he went on to start a whole city, (perhaps the next Norman Foster?).
How do you think that that 6-year-old will work more efficiently when he enters the work place?

Not within a ponderous, on site, monolithic single unchanging UI approach that’s for sure. But with a constantly changing, innovative line of business multi ‘apps’ environment provided to him as IT as a service from cloud based vendors.

Don’t be the only IT manager, CIO or CTO who isn’t already planning how to fundamentally restructure IT service delivery into an efficient cloud based source and provide function for his organisation.