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Why Aren’t CIOs Using Cloud Storage?

by Chris Curran on September 2, 2010 [email] [twitter]

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I thoroughly enjoyed the opportunity to speak at the CIO 100 Symposium & Awards Ceremony last week, with an audience of so many IT leaders who are driving business growth through innovation. As we all have witnessed, the early results from enterprise cloud computing initiatives have been mixed. During my presentation, we conducted a real-time survey via text messaging and I’d like to thank the 50+ CIOs and IT leaders who participated, as well as CompuCom for its sponsorship.

Let’s get to it.  The survey consisted of seven basic questions, but none more basic than this:

Where do you have the single most successful production use of the cloud?

While about 42% of the survey participants selected “horizontal application,” just over 35% said they have no production cloud use at all.  I’s also very surprised that cloud storage is so poorly utilized.  It is simple to use, measure and its cost model is clear.  Granted, cloud storage doesn’t make as much sense for a secure production database, but there has to be more out there just in the way of backups, file storage, etc. that could justify easy re-platforming in the cloud.

What is preventing you from more aggressively using the cloud?

Forty percent are most concerned about security, while 37% are overwhelmed by a presumed complexity.

When will the majority of your infrastructure be in the cloud?

With a verdict on corporate cloud computing projects still up in the air (excuse the pun), it’s interesting to see the variety of responses from our survey. Of the seven questions we asked the audience, only one (“When will the majority of your infrastructure be in the cloud?”) had a majority of respondents choosing the same answer. Fifty-nine percent of those answering said “Never.” Could this be a function of the lack of corporate agreement on the benefits that reside in the cloud?

What is the single most important attribute of the cloud?

There was little agreement among those polled when asked to choose the single most important attribute of cloud computing. “Elastic, as-needed capacity” was selected by roughly 32%, while the same percentage opted for “third-party management.” Some respondents (18%) singled out the “self-provisioning” nature of cloud computing, while 9% said “pay-as-you-go” is the most important attribute. Consequently, the remaining 9% selected “other.”

Where do you have the most promising active cloud evaluation?

Respondents agreed to an even lesser extent when we asked them to choose the most promising active cloud evaluation–even among the top three responses. Nearly 27% selected “server capacity,” while another 27% chose “horizontal application. “No active evaluations” came in just behind those groups, at 18%.

What percentage of your 2011 IT budget do you expect to save due to cloud use?

When asked what percentage of their 2011 IT budgets they expect to save due to cloud use, answers were spread out fairly even across four of the five selections.

What are other parts of your business doing with the cloud?

The ambiguity surrounding the enterprise’s adoption of cloud services was on full display when we asked the audience what other parts of their businesses were doing with the cloud. Roughly 41% of respondents indicated they were “totally unaware” of what their business counterparts were doing with the cloud, while a similarly-sized group (38%) said the business is pushing IT to evaluate and adopt cloud services. The remaining 21% said the business is purchasing cloud services on its own.

What can we take away from this modest sampling? We could dig down to glean deeper insights, but this exercise provides “Exhibit A” that the future remains “partly cloudy.” Yes, the cloud is here to stay—but finding value amid the haze is clearly not an all-or-nothing proposition.

It’s been said it takes 30 years for an idea to truly come to fruition in the marketplace, and cloud computing only entered the enterprise’s lexicon a handful of years ago. Even so, it is a testament to the cloud’s ability to quickly permeate nearly all facets of our lives—both professional and personal—that all large enterprises are at least kicking the tires on cloud options.

Thanks again to everyone who contributed to our survey.

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6 Steps to Close the IT Skill Gap

August 28, 2010
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Guest Post by Rob Boudrow and Bob Audet Recent research reveals that 72% of executives place above average importance on talent management, yet only 44% of their companies have done an above average job in building the foundational capabilities to manage and improve talent.  During a recent project with a health care CIO, we observed this gap in practice and want to share some of our observations. Early-on, we saw four major issues: higher reliance More ›

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2 Great Technology Design Books

August 26, 2010
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2 Great Technology Design Books — Video Blog Transcript I’d like to recommend a couple of books to you, both on the subject of design but from totally different perspectives.  The first book is Change by Design by Tim Brown who is the current CEO of IDEO, the industrial design firm.  The second book is The Design of Design by Frederick Brooks, who is the author of the famed Mythical Man Month and legendary figure More ›

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Who Needs a Current State Technology Architecture?

August 23, 2010
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Guest Post by Zach Sachen, Sridhar Karimanal and Rima Safari Collecting information about your current technology architecture is a major pain, so why bother?  Is it just a waste of time or is it another enterprise architecture myth? A quick calculation shows that building skills and processes to  produce, maintain, and use current state architecture information can save a company a lot of time and money, as well as realize additional benefits along the way. More ›

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A CIO’s Own Learning and Development Plan

August 19, 2010
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An article in the latest Fast Company describes “How TED Became the New Harvard – Only Bigger.”  TED and Harvard are certainly not the same kinds of animals, but TED has introduced us to a broad set of ideas and is delivering them in brand new ways.  After watching the videos from afar, I’m planning to attend TED in 2011 and will certainly blog about it.  New models for learning and networking like TED highlight More ›

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Can You Outsource Innovation?

August 13, 2010
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I’m writing this as I finish up a great week of vacation on the Baltic Sea with my wife and some friends.  While our main destination was St. Petersburg, Russia, an unexpected surprise was our visit to Tallinn, Estonia.  As you can see in the photo above, Tallinn has many old churches and a well-preserved walled old town.  What you can’t see in the photo is the energy and positive outlook in its people, much More ›

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You Aren’t Using a Cloud Platform

August 11, 2010
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I’m pretty sure that in larger companies, aside from the internal use of virtual machines that are mis-labeled as cloud computing, the cloud wave is a wave of talk. Instead of telling us how they are using (or want to use) the cloud, many of our clients are still asking us to help them survey the market so that they can evaluate it as part of their overall sourcing approach and technology architecture. One insurance More ›

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Shared Services Need Shared Management

August 4, 2010
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One of our travel clients has several thousand locations across the globe where they serve customers. While there are different brands and cultures, many of the functions are more common than they are unique. To make things more interesting, many of the local businesses are franchises, greatly increasing coordination complexity… More ›

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Business Change Management Using Weak Signals

August 2, 2010
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A Fortune 500 company embarks on an ambitious program to implement a Master Data Management solution. Three years and a $100M later, executive leadership decides that too much money has been sunk into the program and the anticipated objectives have not been realized. The program is shut down… More ›

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Revisiting the .NET – J2EE Debate

July 30, 2010
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Guest Post by Jason Carter

There was recently a discussion on one of our internal forums on the relative merits of the .NET and J2EE platforms for enterprise applications. The subject generated a lot of interest since a lot of the readily available comparisons are nearly a decade old. J2EE supporters tout its ability to scale vertically, integrate more naturally with legacy systems, its backward compatibility and platform independence. .NET evangelists referenced a superior IDE, shorter development cycles and horizontal scalability… More ›

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