The Path of Least Resistance - Just Bypass IT
I recently read a very interesting article about cloud technologies, and how the agility provided by having a Cloud-based strategy even exceeds the monetary benefit that can be gained from it. You can read that article here: https://www.networkworld.com/article/2929452/cloud-computing/cloud-computing-more-about-agile-development-than-cost.html
I have been privileged to work in the cloud space for a few years now – first in managing the life-cycle of virtual infrastructure, then specific solutions as Software as a Service, and most recently Platform as a Service. So far it has been real fun, and seeing the industry grow and develop, what has stood ou to me has been how businesses has adapted to the changes. It was inevitable that the changes associated are and would be painful, but what intrigued me the most about this, has been (and is) that it was not IT that lead the “cloudification” of companies, but business.
I can of course psycho-analyze Information Technology at this point, but I think it would be stating the obvious when talking about why IT is slow to adapt and change. Maybe touching on why Business is leading the move to cloud could be enlightening. I think that one sentence would summarize it.
Path of least resistance
That’s right – if business finds it difficult to deal with IT, they will find the path of least resistance - a way around IT. That is why companies have been outsourcing IT over the last few years. That is why IT budgets are constantly being pruned. That is why a CIO might in theory be a C-level manager, but are more often than not treated like z-level techies. That is how so-called “Shadow-IT” comes into existence, and that is why lately business have started using pay-as-you-go and consumption-based Cloud solutions.
Why is it important to follow the path of least resistance? Because to business, agility is more important that cost.
Think about it. A financial institution has a new business idea or go-to-market. It the “good old days” of brick and mortar banking, it was all about the relationship with the bank manager. The Internet has changed all that. Banks have cut down on physical presence, and are dispensing money through Automatic Teller Machines. Electronic Bank Transfers are increasing dramatically and nearly all payments are made with cards or other new techniques. Banks are developing systems based on mobility, and the prime differentiation for banks in the Networked, Social, Service-centric world that exists now, is Agility. If it takes 3 months to establish infrastructure to deliver a service, and 6 months to develop the software, the opportunity is already past and somebody else has already overtaken the bank in innovation. The potential loss for coming to market late could run into millions of dollars, and the capability of a bank to capitalize on changing technology could have a major impact on the bottom-line of the bank.
This scenario is not only relevant to banks. It is the same for virtually any other organization that successfully leverage off technology to do their business. Over the last few years, I have more often than not found that the obstacles that IT throw up for cloud, is not seen as such by the business. It is often simply because IT does not really understand the business, and don’t really have a partnership with the business. It could also be that IT finds that if they don’t have the heavy iron in the basement they are exposed.
I remember a recent discussion with an IT Operations Manager of a company in South Africa. It went something like this:
“Mr X, if you use this cloud solution, it will allow you to consolidate your international operations in 5 countries into a single system, provide you four 9’s availability, full redundancy between dual data-centers, your upgrades are free, and you don’t have to wait for 6 weeks for hardware before you can start building. Plus it will work out more cost-effective that your current solution.”
The Answer: “Sorry Gideon, we do not have a cloud strategy”.
Now I have exactly the same discussion with Business and the response is “Where do I sign?”
Business gets the IT revolution and are actively buying into it. How do my colleagues all over the world experience the situation in your countries? Is it only in the emerging economies where IT is lagging behind business? Are there other inhibitors that Emerging economies have that developed economies have?
Disclaimer: Please Note that these views do not necessarily represent the views of the company that I work for or any company that I have worked for in the past.