Cloud: A Business Proposition

All the major analysts forecast that Cloud Computing is going to grow in a huge way over the next three years – and we fully expect that, with restricted budgets and the need for extensive restructuring, the public sector, especially progressive local authorities and universities, will be actively benefiting from this exciting new paradigm.

Cloud Computing is a business proposition rather than an IT one and is a means to encourage innovation, improve customer service delivery and to achieve cost and energy reductions. This ‘magic’ is achieved by viewing IT, within or beyond the organisation, as a consumable utility rather than a ‘precious’ (in both senses of the word) in-house function.

The Cloud view places the focus on the consumption of ‘service’ rather than the consumption of IT and by doing so frees up the organisation from both the expense and the tyranny of internal IT.

Because IT is seen by many as an essential though utterly mysterious function, executives often don’t realise they’re actually only using a fraction of the available capacity of their expensive IT. (Industry figures of 10 to 15 per cent are frequently quoted). This occurs because IT is generally provisioned for dedicated tasks and for peak loads. The more tasks there are to be performed and the greater the difference between average and peak loads the greater the wastage. By pooling resources and enabling flexible sharing, Cloud technology enables organisations to harness that unused potential.

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