November 17, 2009

The great cloud debate's unsatisfying but true answer

Salesforce.com wants you to adopt the cloud whole hog. Microsoft wants you to tread lightly. Why they're both right -- and wrong

Leading the "Did you see this, Dave?" articles I received by e-mail last week was this piece by the Economist that provides a very interesting debate on cloud computing. The discussion was between Stephen Elop, the president of Microsoft's Business Division, and the never-boring Marc Benioff, CEO of Salesforce.com. Ding, ding, ding!

From Stephen Elop: "Customers speak for themselves, and customers want choice. Their key requirements necessitate choice. Customers will be suspect of cloud-only solutions because they may need the ability to either migrate from or interoperate with legacy applications; they want to use existing technology investments and skill sets; and their personal assessment of risk and operational preferences may include the need for some computing capacity within their own datacentres."

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From Marc Benioff: "Ultimately, customers do not care that much about the delivery model. But they do care about the economic model of traditional software, which has shifted dramatically against them. Increasingly, they are coming to the [realization] that they are duplicating the efforts of their competitors without innovating or adding business value. The real crisis of trust in this discussion is the rapidly eroding confidence that investing in traditional software will add real business value to the enterprise."

You can boil down the argument around the concept of using what I call cloud-heavy and cloud-light.

Benioff is a cloud-heavy guy, considering that all of his business has been around the promotion of enterprise software that's delivered as a service. Thus, his vision is that cloud computing-delivered software and infrastructure should provide you with more value, short and long term, than traditional enterprise software. I get it.

Benioff's view of cloud computing from the value perspective, and not around the hype and technology, is not a bad way to consider the technology. But it could be an oversimplification when considering cloud computing in a larger enterprise architecture context.

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JamesMartin 17-Nov-09 12:48pm
"However, they started with a blank piece of paper..." This reminds me of the Cell Phone phenomenon. Many is the younger user who has no land line, because they discovered the cell phone provides all the necessary functions. A land line is just an un-needed expense. Likewise, I suspect that the newer companies may find all they need in the cloud, with very little need for on site computing. When you stop to think about it what sense is there in hiring an IT staff and spending a lot of money on server technology. The roll of IT has always been to support the company. You don't build a company to support IT, unless that is your product. You use IT to make your company work better. You need to be able to use IT to do what ever job it is you need to do. Whatever solution, outsourced IT, cloud computing, on site staff, that best fits your business is the solution you should use.
bko61163 29-Nov-09 4:09am
James, the telephone comparative is excellent . When David says, "But it could be an oversimplification when considering cloud computing in a larger enterprise architecture context" he is right. However, in the majority of larger firms IT's purview is manned by dinosaurs whose interests are more aligned to averting extinction than in advancing the organization. Complicating matters in these cases is non-IT leadership incapable of understanding alternatives solutions like the cloud and its ROI implications - and not just in the context of IT but from a strategic perspective. Daniel Boorstin, author and historian, was right when he observed that, "the greatest obstacle to discovery is not ignorance: its the illusion of knowledge." As Collins recently mentioned during an interview http://www.bryankorourke.com/journal/2009/4/28/jim-collins-were-all-head..., "we're all heading into the storm" and IT is no exception. Despite owning a mobile telephone and never using her hard wired line, my mom has yet to jettison the old technology. This is analogous to many IT "managers" married to their extant "systems" despite there being no need and with a clear alternative staring them in the face.

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