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The Ideal Modern IT Department (Part 1)

6/12/2013 11:10:30 AM

How increasing cloud reliance is altering skills & responsibilities

Cloud computing could easily be nick-named “the great transformer” due to the way it’s altering how companies operate their businesses. A growing number of enterprises are seeking out cloud providers to deliver and maintain infrastructure and applications, effectively taking over many of the tasks that internal IT departments have traditionally shouldered.

A growing number of enterprises are seeking out cloud providers to deliver and maintain infrastructure and applications

A growing number of enterprises are seeking out cloud providers to deliver and maintain infrastructure and applications

For IT personnel, the increasing reliance on the cloud is resulting in a sea change of sorts in terms of the new cloud-centric knowledge and skills they’re now expected to possess. In short, as companies actively architect for cloud, IT must manage data in new ways; establish and operate new public, private, and hybrid cloud environments; integrate disparate cloud services with internal infrastructure and applications; and work more closely with their company’s business units in a strategic capacity.

Here we explore the impact the cloud is having on IT departments, the skills that are becoming more important for IT personnel to possess, and the ways in which the cloud could reshape future IT departments.

The ideal       

Much evidence indicates that IT departments in companies of all sizes will likely feel the cloud’s impact in years to come. A 2012 Uptime Institute (www.uptimeinstitute.com) study found that 16% of respondents had deployed a public cloud and 35% a private cloud in 2011 vs. 25% and 49%, respectively, in 2012. Further, Matt Stansberry, Up-time Institute director of content and publications, says contrary to the notion that small and midsized businesses are currently better suited for the cloud, analysts found that 32% of large companies pursued the cloud in 2012 to meet compute demand while 19% of small organizations did the same.

Given that cloud adoption is occurring, what does the ideal modern IT department look like, particularly in SMEs? Andy Woyzbun, lead research analyst for Info-Tech Research Group (www.infotech.com), says Info-Tech can provide recommendations for implementing cloud-related IT services that will have competitive value to the organization, take responsibility for selecting appropriate and cost-effective solutions, implement approved solutions, ensure stable operation, and make service adjustments to reach business targets. Overall, he says, the modern IT department guides an appropriate balance between internally delivered services and externally provided services and “takes full responsibility regardless of the choice.”

Analysts found that 32% of large companies pursued the cloud in 2012 to meet compute demand

Analysts found that 32% of large companies pursued the cloud in 2012 to meet compute demand

Lynda Stadtmueller, program director for cloud computing with Stratecast, a division of Frost & Sullivan (www.frost.com), says the IT department’s role isn’t necessarily to implement and maintain technology but to explore and assess how technology can help the business. “By offloading responsibility for labor-intensive tasks like routine infrastructure maintenance to a partner, the IT department frees up resources to explore the explosion of new technology available on the market,” she says.

Similarly, Clive Long bottom, analyst and founder of Quocirca (www.quocirca.com), sees IT staff’s role shifting from being “Technical Gurus working on implementation, patching, and upgrading” to offering advice on options available, which will “require a greater level of understanding of the business itself, and for the business, to have its own risk profile defined so that the options provided by the IT group can be fit in with the profile”. If a SME needs document sharing abilities, for example, IT would provide the information (cost, risk levels, etc.) about internal and externally hosted systems on which the company can base a decision. IT would then implement and manage the solution with any integration, etc., as required, he says.

Coming changes

Companies already using cloud services have likely undergone transformations in their IT departments. In the future, these will increase, influencing size, management, funding, and other traits.

Woyzbun anticipates three key areas of change for IT. First, IT departments must acquire solid vendor management and business analysis abilities, “as IT is still accountable for the performance of external suppliers and the communication of specifications.” Second, service costs previously hidden in overall IT budgets will become transparent. “Making successful business cases becomes more challenging, and there is increased pressure to make internal costs more transparent to compare them to market prices,” Woyzbun says. Third, internal staff member numbers will generally drop, “typically driving an intelligently managed downsizing requirement.”

Cloud computing creates more time spent to assess new applications and building business cases

Cloud computing creates more time spent to assess new applications and building business cases

Stadtmueller, however, says while staff decreases are often touted as a cloud-related benefit, companies she’s spoken with aren’t downsizing but using staff more productively. “There’s less time spent crawling on the floor to replace parts and more time spent assessing new applications and building business cases,” she says. Another change, she says, involves line of business managers increasingly budgeting and purchasing SaaS [software as a service] apps without IT involvement. “Impatient LoB [Line-of-Business] managers are happy to sidestep what they often consider IT hurdles; and often the overburdened IT department sanctions or turns a blind eye to this behavior rather than deal with an unhappy constituent,” she says. LoB managers, however, are rarely equipped to assess business risks associated with various SaaS services, she says. To support initiatives and protect the business, she suggests IT establish internal app stores.

For Longbottom, increased cloud reliance means “there is no need for uber-techies.” Implementing, patching, and upgrading chores now fall to the cloud provider, he says. Internal IT’s role becomes more strategic, involving selecting the right cloud provider and determining if it can deliver on promises, offers a stable model, provide offerings open enough to integrate with other cloud services, and more.

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