The essence of Cloud computing has been around for more than a decade, so why has the adoption rate has been slower than many other new technologies such as virtualized servers? It is this interesting phenomenon that I would like to explore in this article; given that cloud computing could ultimately become one of the most transformative forces to IT in decades. However, while “Cloud” and Software as a Service (SaaS) have proven benefits to IT, that alone isn’t enough when there may be serious consequences to the business.
Like all discussions that mention Cloud, let’s level set on a definition: Wikipedia defines Cloud Computing as “Internet-based computing, whereby shared resources, software, and information are provided to computers and other devices on demand, like the electricity grid.” Gartner puts it a slightly different way by defining Cloud as “a style of computing where massively scalable IT-related capabilities are provided ‘as-a-service’ to external customers using internet technologies”. With many definitions of Cloud Computing available and many delivery models such as Infrastructure-as-a-Service (SaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS), a Cloud discussion can be confusing, but for this article we will focus primarily on SaaS since it is the most commonly understood Cloud use case. Now that we have that out of the way, let’s discuss how to bring the value of Cloud and SaaS to our companies and our customers.
The Cloud and SaaS software delivery models have several advantages over the traditional software licensing model. First and foremost, not needing the infrastructure, manpower and time to set up, implement and update the software has enormous cost-saving and efficiency potential. The speed to implement and the services included in many Cloud and SaaS packages are what many early adopters cite as deciding factors for their choice. Having the option for pay-per-use has given customers access to valuable tools without having to manage five 9’s of infrastructure with the risk of derailing their budget or project timeline.
Lastly, and an important factor for your Cloud and SaaS discussions, is that the provider or vendor’s environment is always optimized for performance and stability. This will resonate with anyone who has had a project that was delayed or impacted by IT not having the infrastructure stable enough to run the required software. Nothing frets a project manager more than external forces outside their control delaying their project. To a project manager, the cost savings of SaaS and the peace of mind of a secure and stable computing environment may be, as they say, “priceless”.
While the value and benefits of Cloud and SaaS are clear, adoption has not been a tidal wave but a trickle. It is very likely that the value and benefits of moving toward this delivery model of Cloud and SaaS is not being communicated to the right people in the right way. Sprinkle in a little distrust of new technology (for “dot-crash” survivors) as well as limited resources and it makes sense as to why Cloud forecasters speak in future tense and not achievements when it comes to adoption rates.
In the past, Cloud and SaaS were discussed as a new technology, introduced as the hot new thing for IT cost savings and availability. IT managers were approached by their staff or IT sales folks to hear about this alternative to in-house static ownership and traditional software and license management. IT Directors were told they could draw from their operations budgets and that they could count on predictable costs, clear and manageable SLAs, and straight line accountability. If anyone was lucky enough to engage with the CIO, they were sure to bring up benefits like decreased risk to IT of a failed software implementation and lower cost of ownership. This is how Cloud lost its mojo.
There needs to be a fundamental shift in how the Cloud and SaaS delivery model is explained and to whom we explain it. New technology usually lacks trust at first. Most folks have been around long enough to have been burned, some more than once. There needs to be a more trusted way we communicate the value of Cloud Computing. Before, we spoke to the IT Managers about their concerns and then the Director about their concerns and the CIO about theirs. This places all of the credibility on the sales person or the project manager or the Cloud evangelist. Decision-makers need more. They need to hear it from their Directors and their Directors need to hear it from their managers. In short, the chain of command must all be singing the same song.
Managers do not make decisions in a vacuum. They will need the buy-in of their Directors in order to move forward with a Cloud Strategy. It makes sense for the Manger to communicate in the language of their Director, namely costs and accountability. Managers need to translate benefits, such as decreased headcount or reassigned resources, into the verbiage of their Directors and discuss charge back activities, SLA achievement or direct lines of accountability.
Directors have the same obligation. The CIO should not have to interpret his Director’s concerns into his own vocabulary. Do the translation for him when speaking about the benefits and value of the Cloud. Speak his language. Your CIO has been around long enough to have been stung by adopting a new technology or methodology. He knows clearly that his choices can make the company successful or squash progress. Speak to his mindset and vocabulary and he will listen.
Know exactly how the move to a Cloud or SaaS solution will decrease risk. Know the benefits in terms of happy IT users and decreased costs. Be exact about what the return will be and how the costs will be incurred. You should be clear about the positive impact to other IT costs such as headcount, SLAs, infrastructure, and utility costs.
Let’s take a look at an example. If you believe your company would benefit by moving your Service Manager or helpdesk to a Cloud or SaaS solution over owning and managing the software and licenses in-house, don’t just pitch that the cost will be realized through Operational savings and that you have additional budget to spend this year anyway. Isn’t it the CIO who gave you that budget? Dollars are still dollars regardless of the bucket, when you move higher in the organization; especially if the CIO himself is not sold on the newfangled delivery model.
Instead, you may get better results with understanding and then communicating exactly how a Cloud or SaaS delivery model will impact the director and C-level folks within your organization. If you were to explain that the vendor would be accountable for standing up the Service Manager and held to an SLA, thereby diminishing the risk of a never-ending implementation to your company, eliminating the expense of a bottomless bucket of hours required of your staff and upset IT customers that are caught in the middle of two help desks and stuck with a distracted IT team. Include the rationale that no time will be spent on managing software licensing as that would be managed by the vendor. If you can put those factors into estimates like “it would save the company 12 weeks of 2 engineer’s time”, you would be speaking to a Director’s concerns about time lost and missed SLAs and to the CIO’s concern for risk and Total Cost of Ownership (TCO).
If you include that with a Cloud or SaaS-based Service Manager, you would be able to reassign resources from break/fix issues to product or service level enhancements, without any additional cost to IT, you are now beginning to arm your Director with the verbiage he needs to communicate the value to his next level in the management hierarchy. With a change in wording, you didn’t say “we should move this to the Cloud”, instead you decreased risk to IT, added user benefits and decreased overall cost, all in a language that the decision-maker cares about.
There are a zillion ways to spell out the value of Cloud Computing that go beyond the technological and security strengths of the delivery models. Your vendor sales rep and Cloud evangelist will have these answers, but only you will know your CIO’s hot buttons. Though you already have a full plate and the thought of taking on someone else’s concerns may seem counter-productive, if you want your projects and the budget green-lit and approved, you have to speak their language to them.
In short, SaaS and Cloud solutions work. The ability to use the software you need on-demand in a cost and ownership structure that decreases overall TCO is available today and for almost every sector of IT. Operations, service management, planning, discovery, quality and performance testing, application security are all provided as SaaS or Cloud offerings. If you want to bring them on-board for your company or your customer, you must translate your needs into the language of the decision maker, so the Cloud message is propagated correctly up the corporate ladder towards the one with the purse strings. If you follow this plan, you will see results.
