Business Cloud: Beyond operational efficiency

Early adoption of cloud computing in Global 2000 enterprises has largely been for IT optimization.  The early drivers have been cost savings and faster infrastructure provisioning. As per a Forrester Report (Dec 2008) more than 70% of IT budget is spent on maintaining current IT infrastructure instead of adding new capabilities. So, organizations are looking to adopt cloud computing model for their enterprise applications for better utilization of the infrastructure investments. However, the true “disruptive” potential of cloud computing is in the way it is going to help these large enterprise reinvent themselves and their business models to meet the changing business landscape.

Digital Consumers are driving changes in the way products and services are being consumed and being delivered. Gen Y is sending more and more time online and their purchasing decisions are being influences by the social network. Increasing adoption of information and communications technologies is increasing pace of change; traditional in-house R&D will not be enough to match up. Organizations need to adopting open approach to innovation so that there is an ecosystem of partners and customers who are co-creating innovative solutions.

Recently I have co-authored an article on how business cloud can help organization to look beyond operational efficiency and explore new possibilities.

Read the article.