Is cloud computing disrupting the existing IT ecosystem?

Cloud computing is a model where the services/solutions are delivered On demand and in a pay – per –use business model. Today Cloud computing technology has gained lot of reputation and attracting many CXO’s, as it is helping them with low cost IT outsourcing, helping them in handling many industry challenges & limitations, especially in serving enterprise needs and wants. Looking ahead, though we see several significant disruptions that will be catalyzed by the evolution of this Cloud computing technology. These disruptions, of course will create opportunities not only at the technology front but also at management practices.

This vision has yet to be fully realized. The adoption of cloud computing by enterprises is still mostly limited to few services like e-mail and collaboration tools such as Google Apps, sales and marketing applications such as, and some cloud-based services such as Amazon Web Services.

Since the dynamics are uncertain, pressures due to growing market and the consumer behavior is constantly looking for a best solution with reduced efforts and costs, cloud computing tends to be the lowest cost form. By leveraging to latest technologies and new architectures enables cloud to become enterprise ready.  And for service providers software distribution model becomes more efficient and the hardware capacity utilization also gets increased. During the paradigm shift phase towards the cloud computing, in order to handle the growing economic and competitive pressure one should not get disrupted with the existing system.

Today, the main drivers for Cloud computing services are price flexibility, low cost, free up resources, less time to market and scalability. Apart from these, several other options are arriving all the time, ranging from highly developed and specialized software as a service, Infrastructure as a service and platform as a service offerings – with these services in place there are advantages both in terms of cost and productivity.

The organizations might have spent significant amounts in premise based infrastructure and for the existing ecosystem; organizations should go on for continual iterations in order to have continuous business process flow during the restructuring process. Some of the questions pertaining to disruptions while adapting towards cloud computing are:

  • Can we maintain the same stability in the existing mission critical applications?
  • Will there be a tight integration between systems while transforming?
  • Does the selected system provide the flexibility and the interoperability?
  • Can cloud computing be easily manageable?
  • Is this process going to scalable and elastic?

Above are some of the questions to be answered to avoid the disruptions and there can be many more.  Rapid/Disruptive change occurs when solutions for a given problem are radically improved by replacing components of a technology with components from an entirely different domain. At this point IT undergoes a major change in cost, complexity and capabilities. So monetizing the underlying infrastructure services facilitates service providers to offer newer versions at a rapid speed, and also better serve the customer base. Upon succeeding in phase shift towards cloud computing the entire value chain gets streamlined. Hence the entire service/product delivery mechanism will be in a more efficient way.

But in general if the existing premise based applications/infrastructure is supporting and sufficing the business requirements and the changing needs of the consumer then should a service provider really think of cloud computing model? Your comments are highly appreciated.

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