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Week 4 Cloud Governance and Resources

The following definitions were drawn from Taking Governance Forward (www.takinggovernanceforward.org)

 Governance objectives are defined as value creation, management of risks and optimization of resources for achievement of enterprise goals.

 An effective and efficient governance system is a system that facilitates the creation of optimal, or acceptable, “value” to the various stakeholders, using “limited” resources in an optimal, or responsible, way, at an optimal, or acceptable, level of risk to the various stakeholders.

 

Will the adoption of cloud computing by organizations positively or negatively impact the ability of organizations to create value by using their resources (technology, infrastructure and people) in an optimal manner?   Will the drive for quicker deployment and reduced costs impact resource value?  

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RE: Week 4 Cloud Governance and Resources

I believe the adoption will negatively impact if not carefully executed, an organization’s ability to create value from their resources at first. In the near term, resources (technology, infrastructure and people) will be reduced internally to the point where an outage or business continuity issue and unable to deal with outages in the standard ways that companies are accustomed to. For example a business unit expects the IT organization to maintain 99.99% availability, however, with the reduced resources it will be extremely difficult to maintain that level of service if multiple cloud resources are involved in a business process.  Over time as with other new processes, people will figure out how to get that 99.99 % availability from the cloud providers.

Will the drive for quicker deployment and reduced costs impact resource value?

This is occurring now, instead of replacing aging infrastructure, businesses will look elsewhere to achieve the desired business benefits. Overtime, if the cloud provider can achieve the quick deployments for lower costs, their resource value will increase.
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

My view is that theoretically adoption could really help organisations ability to create value through better optimisation of resources.  For example, through redeploying people from activities now undertaken by a third party cloud service provision onto revenue generating activities.  However, reality may well be that organisations take the opportunity to simply reduce the overall people overhead to the point where non-cloud services may begin to be impacted (lack of resilience/knowledge - leading to longer fix times etc).  Or organisations may have short term optimisation of moving technology to cloud services, only to find longer term costs increasing and a number of 'legacy' systems/infrastructure that can't be moved reducing the cost/benefit.

For cloud providers the drive or demand for quicker deployment may mean that services are created less efficiently or effectively with process issues requiring subsequent resolution to keep cloud customer business (i.e. in the rush to provide services and meet demand, the services may be built on uncontrolled processes, not linking effectively to service recognition or billing processes effectively - leading to customer experience issues). 

Resource values for an organisation could be increased through early or quicker adoption of the cloud, through reductions in numbers of processor based systems/infrastructure and the associated maintainance costs to cloud investment if these are more agile/nimble services and if can flex with demand at lower costs.
John LloydLively at 6/6/2011 2:35:17 PM Quote
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(Unrated)

RE: Week 4 Cloud Governance and Resources


There are couple of things we need to consider here. First,  how we define "value creation". Going by the definition above, it is the quantitative aspect, the shareholder value delivered by the business. If we purely compare in monetary terms, one can see  that cloud computing has very direct and immediate impact on value delivery by saving infrastructure & management costs and reducing the delivery time. But going by the same definition of "value" we should not forget that we have increased risks in the cloud which could  have significant negative impact on value.  Thus even though we might see immediate "value" in the cloud adoption, in the longer run and with deeper analysis of risks, we might have to reset our expectation of value being created.  From past experience, we know that it take years to build the shareholder trust but one bad incident could wipe off significant shareholder value for the company. 

Also, I believe there is another aspect of value which is intangible. It's about how IT is supporting business to deliver value (the qualitative angle) than how much (the quantitative angle). Thus we need to think about business to IT relationship in the longer run and impact it might have on value delivery in future. In one of the organizations which I worked with, the size of IT dept shrunk significantly after they moved to cloud as they lost several key IT experts. Eventually they had major challenges supporting their cloud environments and that eventually affected their ability to do business.

Thus, I believe when we think of "value creation" in cloud model we need to carefully weigh the risks against the immediate benefits we see in terms of savings. And also consider the impact of cloud on value creation in the long term.

Subodh
SubodhLively at 6/7/2011 2:40:49 PM Quote
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(Unrated)

RE: Week 4 Cloud Governance and Resources

Will the adoption of cloud computing by organizations positively or negatively impact the ability of organizations to create value by using their resources (technology, infrastructure and people) in an optimal manner?  

Yes & No.

If organizations adopt a cloud computing to non mission critical business, organization will be able to concentrate their resources into their mission critical business.
And, if organization have not enough resources for their new businesses, adoption of cloud computing will reduce impacts for current resources.

Adoption of cloud computing to mission critical, long term & wide range businesses may give critical impacts to their resources. Know-how, excellent IT engineers may be lost.

 

Will the drive for quicker deployment and reduced costs impact resource value?

If organizations can divert to their resources to more value adding business, resource value will not be lost.
Current many companies think these resources (technology, infrastructure and people) as "Cost". These companies may receive serious impacts.

Anyway, appropriate IT related risk management is essential.

Masatoshi Kajimoto,CISA, CRISCEnergizer at 6/7/2011 9:23:05 PM Quote
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(Unrated)

RE: Week 4 Cloud Governance and Resources

Fundamentally, all organisations should exist to create value for their stakeholders - this is the case regardless of whether the organisation is a family own business (where the stakeholders are the members of the family), a publicly listed company (where the stakeholders are the shareholders), a government or public sector organisation (where the stakeholders are many and varied), or an NGO (again, where the stakeholder groups may be numerous).

The concept of "value at risk" should be well understood by any organisational board / executive / management, but unfortunately I do not believe this is the case.  Many organisations have confused objectives and in some cases are actually at odds with the basic business premise of "maximization of return to stakeholders".  This has been well illustrated over the years where boards and executive management have acted in ways which have been contrary to the best interests of the stakeholders (Worldcom, Enron, Lehmann Brothers, et al).

In these situations organisational management will make decisions based on short term gain, because that is what drives them (read increased remuneration), in such situations long term consequence seems to be something that doesn’t come into the equation.  So, in these situations, if Cloud appears to be of benefit to the bottom line in the short term, that’s the way the organisation will move.

In more mature and stakeholder focused organisation the issue is a little bit more involved.  These organisations will consider long term consequence.  Their analysis will be based on empirical information (qualitative and quantitative), so they will consider the short, medium and long terms impacts of this strategy.  Cloud, like outsourcing in the 1980’s is just another strategy to aid in the achievement of business value, albeit with more complex technical considerations.  But fundamentally, if the strategy aids in the achievement of long terms sustainable value, then it is the right decision.  However, the decision regarding whether to adopt this strategy or not is profound and one not easily reached.

I would suggest that the question of whether the adoption of cloud computing by organizations positively or negatively impacts the ability of organizations to create value by using their resources (technology, infrastructure and people) in an optimal manner is more about the ability of the organisation to fully understand their business context, understand what benefits cloud computing will provide, but also fully understand the risks involve, and then make an informed decision.  My concern is that many organisations will jump on the cloud bandwagon because it seen as the new “silver bullet”.  Unfortunately, like “off shoring” it may well come back to bite those who do not fully understand the long term risk.

Howard NicholsonLively at 6/8/2011 3:13:20 AM Quote
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(Unrated)

RE: Week 4 Cloud Governance and Resources

Few people would dispute the savings inherent in cloud computing about hardware and software infrastructure, but it is less clear whether they also produce savings in IT service management model based on a cloud, a key aspect in the IT environment since most costs are in management.

Looking from my experience the value of cloud services, I could say:

  • Cloud Computing offers advantages to SMEs in terms of cost reduction. You pay for what you use.
  • Expand your storage options to meet your needs without a problem, instead of having to go out and buy expensive hardware.
  • No need for the IT department have to worry about paying for future upgrades in terms of software and hardware.
  • Employees can access information wherever they are, instead of forcing them to stay in one place most of the time to access what they need.
  • Cloud Computing uses less power than traditional data centers it is important to many today.

In many cases the key advantages of cloud computing are its agility and flexibility, as well as self-service capabilities. But these characteristics are neither new nor unique to the cloud. The truly revolutionary cloud computing is that, thanks to its high levels of scalability and automation, you can get such benefits at an attractive price. As IT organizations deploy their first cloud computing applications, realizing that will achieve agility and flexibility is hard and requires new application architectures. Deploy robust applications on an infrastructure that is not so imposing redundancy approaches. Requires software architects and engineers have new technical skills.

Romulo LomparteSocial at 6/10/2011 3:32:48 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

Will the adoption of cloud computing by organizations positively or negatively impact the ability of organizations to create value by using their resources (technology, infrastructure and people) in an optimal manner? 

the answer would appear to be a resounding 'maybe'.  A good bit defends of the subjective definition of 'value' and 'optimal'.  What a business group would consider 'optimal' and 'creating value' may not necessarily be what IT, Finance, or the CEO would consider 'optimal' or having 'created value'.

If a solution appears to create value by enabling a value added service at a low cost but significantly changes an organizations risk profile/exposure has it been both optimal and valuable?

Should selection of a cc service be done with input from the various GRC stakeholders and a solution vetted against alternatives using a common perception of 'optimal' and 'value'... then the answer would be yes.  In any other set of circumstances the answer would have to be 'maybe'. 

Austin HuttonLively at 6/14/2011 2:06:44 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

Will the adoption of cloud computing by organizations positively or negatively impact the ability of organizations to create value by using their resources (technology, infrastructure and people) in an optimal manner? 

the answer would appear to be a resounding 'maybe'.  A good bit defends of the subjective definition of 'value' and 'optimal'.  What a business group would consider 'optimal' and 'creating value' may not necessarily be what IT, Finance, or the CEO would consider 'optimal' or having 'created value'.

If a solution appears to create value by enabling a value added service at a low cost but significantly changes an organizations risk profile/exposure has it been both optimal and valuable?

Should selection of a cc service be done with input from the various GRC stakeholders and a solution vetted against alternatives using a common perception of 'optimal' and 'value'... then the answer would be yes.  In any other set of circumstances the answer would have to be 'maybe'. 

Austin HuttonLively at 6/14/2011 2:06:44 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

Few people would dispute the savings inherent in cloud computing about hardware and software infrastructure, but it is less clear whether they also produce savings in IT service management model based on a cloud, a key aspect in the IT environment since most costs are in management.

Looking from my experience the value of cloud services, I could say:

  • Cloud Computing offers advantages to SMEs in terms of cost reduction. You pay for what you use.
  • Expand your storage options to meet your needs without a problem, instead of having to go out and buy expensive hardware.
  • No need for the IT department have to worry about paying for future upgrades in terms of software and hardware.
  • Employees can access information wherever they are, instead of forcing them to stay in one place most of the time to access what they need.
  • Cloud Computing uses less power than traditional data centers it is important to many today.

In many cases the key advantages of cloud computing are its agility and flexibility, as well as self-service capabilities. But these characteristics are neither new nor unique to the cloud. The truly revolutionary cloud computing is that, thanks to its high levels of scalability and automation, you can get such benefits at an attractive price. As IT organizations deploy their first cloud computing applications, realizing that will achieve agility and flexibility is hard and requires new application architectures. Deploy robust applications on an infrastructure that is not so imposing redundancy approaches. Requires software architects and engineers have new technical skills.

Romulo LomparteSocial at 6/10/2011 3:32:48 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

Fundamentally, all organisations should exist to create value for their stakeholders - this is the case regardless of whether the organisation is a family own business (where the stakeholders are the members of the family), a publicly listed company (where the stakeholders are the shareholders), a government or public sector organisation (where the stakeholders are many and varied), or an NGO (again, where the stakeholder groups may be numerous).

The concept of "value at risk" should be well understood by any organisational board / executive / management, but unfortunately I do not believe this is the case.  Many organisations have confused objectives and in some cases are actually at odds with the basic business premise of "maximization of return to stakeholders".  This has been well illustrated over the years where boards and executive management have acted in ways which have been contrary to the best interests of the stakeholders (Worldcom, Enron, Lehmann Brothers, et al).

In these situations organisational management will make decisions based on short term gain, because that is what drives them (read increased remuneration), in such situations long term consequence seems to be something that doesn’t come into the equation.  So, in these situations, if Cloud appears to be of benefit to the bottom line in the short term, that’s the way the organisation will move.

In more mature and stakeholder focused organisation the issue is a little bit more involved.  These organisations will consider long term consequence.  Their analysis will be based on empirical information (qualitative and quantitative), so they will consider the short, medium and long terms impacts of this strategy.  Cloud, like outsourcing in the 1980’s is just another strategy to aid in the achievement of business value, albeit with more complex technical considerations.  But fundamentally, if the strategy aids in the achievement of long terms sustainable value, then it is the right decision.  However, the decision regarding whether to adopt this strategy or not is profound and one not easily reached.

I would suggest that the question of whether the adoption of cloud computing by organizations positively or negatively impacts the ability of organizations to create value by using their resources (technology, infrastructure and people) in an optimal manner is more about the ability of the organisation to fully understand their business context, understand what benefits cloud computing will provide, but also fully understand the risks involve, and then make an informed decision.  My concern is that many organisations will jump on the cloud bandwagon because it seen as the new “silver bullet”.  Unfortunately, like “off shoring” it may well come back to bite those who do not fully understand the long term risk.

Howard NicholsonLively at 6/8/2011 3:13:20 AM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

Will the adoption of cloud computing by organizations positively or negatively impact the ability of organizations to create value by using their resources (technology, infrastructure and people) in an optimal manner?  

Yes & No.

If organizations adopt a cloud computing to non mission critical business, organization will be able to concentrate their resources into their mission critical business.
And, if organization have not enough resources for their new businesses, adoption of cloud computing will reduce impacts for current resources.

Adoption of cloud computing to mission critical, long term & wide range businesses may give critical impacts to their resources. Know-how, excellent IT engineers may be lost.

 

Will the drive for quicker deployment and reduced costs impact resource value?

If organizations can divert to their resources to more value adding business, resource value will not be lost.
Current many companies think these resources (technology, infrastructure and people) as "Cost". These companies may receive serious impacts.

Anyway, appropriate IT related risk management is essential.

Masatoshi Kajimoto,CISA, CRISCEnergizer at 6/7/2011 9:23:05 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources


There are couple of things we need to consider here. First,  how we define "value creation". Going by the definition above, it is the quantitative aspect, the shareholder value delivered by the business. If we purely compare in monetary terms, one can see  that cloud computing has very direct and immediate impact on value delivery by saving infrastructure & management costs and reducing the delivery time. But going by the same definition of "value" we should not forget that we have increased risks in the cloud which could  have significant negative impact on value.  Thus even though we might see immediate "value" in the cloud adoption, in the longer run and with deeper analysis of risks, we might have to reset our expectation of value being created.  From past experience, we know that it take years to build the shareholder trust but one bad incident could wipe off significant shareholder value for the company. 

Also, I believe there is another aspect of value which is intangible. It's about how IT is supporting business to deliver value (the qualitative angle) than how much (the quantitative angle). Thus we need to think about business to IT relationship in the longer run and impact it might have on value delivery in future. In one of the organizations which I worked with, the size of IT dept shrunk significantly after they moved to cloud as they lost several key IT experts. Eventually they had major challenges supporting their cloud environments and that eventually affected their ability to do business.

Thus, I believe when we think of "value creation" in cloud model we need to carefully weigh the risks against the immediate benefits we see in terms of savings. And also consider the impact of cloud on value creation in the long term.

Subodh
SubodhLively at 6/7/2011 2:40:49 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

My view is that theoretically adoption could really help organisations ability to create value through better optimisation of resources.  For example, through redeploying people from activities now undertaken by a third party cloud service provision onto revenue generating activities.  However, reality may well be that organisations take the opportunity to simply reduce the overall people overhead to the point where non-cloud services may begin to be impacted (lack of resilience/knowledge - leading to longer fix times etc).  Or organisations may have short term optimisation of moving technology to cloud services, only to find longer term costs increasing and a number of 'legacy' systems/infrastructure that can't be moved reducing the cost/benefit.

For cloud providers the drive or demand for quicker deployment may mean that services are created less efficiently or effectively with process issues requiring subsequent resolution to keep cloud customer business (i.e. in the rush to provide services and meet demand, the services may be built on uncontrolled processes, not linking effectively to service recognition or billing processes effectively - leading to customer experience issues). 

Resource values for an organisation could be increased through early or quicker adoption of the cloud, through reductions in numbers of processor based systems/infrastructure and the associated maintainance costs to cloud investment if these are more agile/nimble services and if can flex with demand at lower costs.
John LloydLively at 6/6/2011 2:35:17 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

I believe the adoption will negatively impact if not carefully executed, an organization’s ability to create value from their resources at first. In the near term, resources (technology, infrastructure and people) will be reduced internally to the point where an outage or business continuity issue and unable to deal with outages in the standard ways that companies are accustomed to. For example a business unit expects the IT organization to maintain 99.99% availability, however, with the reduced resources it will be extremely difficult to maintain that level of service if multiple cloud resources are involved in a business process.  Over time as with other new processes, people will figure out how to get that 99.99 % availability from the cloud providers.

Will the drive for quicker deployment and reduced costs impact resource value?

This is occurring now, instead of replacing aging infrastructure, businesses will look elsewhere to achieve the desired business benefits. Overtime, if the cloud provider can achieve the quick deployments for lower costs, their resource value will increase.
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

I believe the adoption will negatively impact if not carefully executed, an organization’s ability to create value from their resources at first. In the near term, resources (technology, infrastructure and people) will be reduced internally to the point where an outage or business continuity issue and unable to deal with outages in the standard ways that companies are accustomed to. For example a business unit expects the IT organization to maintain 99.99% availability, however, with the reduced resources it will be extremely difficult to maintain that level of service if multiple cloud resources are involved in a business process.  Over time as with other new processes, people will figure out how to get that 99.99 % availability from the cloud providers.

Will the drive for quicker deployment and reduced costs impact resource value?

This is occurring now, instead of replacing aging infrastructure, businesses will look elsewhere to achieve the desired business benefits. Overtime, if the cloud provider can achieve the quick deployments for lower costs, their resource value will increase.
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

My view is that theoretically adoption could really help organisations ability to create value through better optimisation of resources.  For example, through redeploying people from activities now undertaken by a third party cloud service provision onto revenue generating activities.  However, reality may well be that organisations take the opportunity to simply reduce the overall people overhead to the point where non-cloud services may begin to be impacted (lack of resilience/knowledge - leading to longer fix times etc).  Or organisations may have short term optimisation of moving technology to cloud services, only to find longer term costs increasing and a number of 'legacy' systems/infrastructure that can't be moved reducing the cost/benefit.

For cloud providers the drive or demand for quicker deployment may mean that services are created less efficiently or effectively with process issues requiring subsequent resolution to keep cloud customer business (i.e. in the rush to provide services and meet demand, the services may be built on uncontrolled processes, not linking effectively to service recognition or billing processes effectively - leading to customer experience issues). 

Resource values for an organisation could be increased through early or quicker adoption of the cloud, through reductions in numbers of processor based systems/infrastructure and the associated maintainance costs to cloud investment if these are more agile/nimble services and if can flex with demand at lower costs.
John LloydLively at 6/6/2011 2:35:17 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources


There are couple of things we need to consider here. First,  how we define "value creation". Going by the definition above, it is the quantitative aspect, the shareholder value delivered by the business. If we purely compare in monetary terms, one can see  that cloud computing has very direct and immediate impact on value delivery by saving infrastructure & management costs and reducing the delivery time. But going by the same definition of "value" we should not forget that we have increased risks in the cloud which could  have significant negative impact on value.  Thus even though we might see immediate "value" in the cloud adoption, in the longer run and with deeper analysis of risks, we might have to reset our expectation of value being created.  From past experience, we know that it take years to build the shareholder trust but one bad incident could wipe off significant shareholder value for the company. 

Also, I believe there is another aspect of value which is intangible. It's about how IT is supporting business to deliver value (the qualitative angle) than how much (the quantitative angle). Thus we need to think about business to IT relationship in the longer run and impact it might have on value delivery in future. In one of the organizations which I worked with, the size of IT dept shrunk significantly after they moved to cloud as they lost several key IT experts. Eventually they had major challenges supporting their cloud environments and that eventually affected their ability to do business.

Thus, I believe when we think of "value creation" in cloud model we need to carefully weigh the risks against the immediate benefits we see in terms of savings. And also consider the impact of cloud on value creation in the long term.

Subodh
SubodhLively at 6/7/2011 2:40:49 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

Will the adoption of cloud computing by organizations positively or negatively impact the ability of organizations to create value by using their resources (technology, infrastructure and people) in an optimal manner?  

Yes & No.

If organizations adopt a cloud computing to non mission critical business, organization will be able to concentrate their resources into their mission critical business.
And, if organization have not enough resources for their new businesses, adoption of cloud computing will reduce impacts for current resources.

Adoption of cloud computing to mission critical, long term & wide range businesses may give critical impacts to their resources. Know-how, excellent IT engineers may be lost.

 

Will the drive for quicker deployment and reduced costs impact resource value?

If organizations can divert to their resources to more value adding business, resource value will not be lost.
Current many companies think these resources (technology, infrastructure and people) as "Cost". These companies may receive serious impacts.

Anyway, appropriate IT related risk management is essential.

Masatoshi Kajimoto,CISA, CRISCEnergizer at 6/7/2011 9:23:05 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

Fundamentally, all organisations should exist to create value for their stakeholders - this is the case regardless of whether the organisation is a family own business (where the stakeholders are the members of the family), a publicly listed company (where the stakeholders are the shareholders), a government or public sector organisation (where the stakeholders are many and varied), or an NGO (again, where the stakeholder groups may be numerous).

The concept of "value at risk" should be well understood by any organisational board / executive / management, but unfortunately I do not believe this is the case.  Many organisations have confused objectives and in some cases are actually at odds with the basic business premise of "maximization of return to stakeholders".  This has been well illustrated over the years where boards and executive management have acted in ways which have been contrary to the best interests of the stakeholders (Worldcom, Enron, Lehmann Brothers, et al).

In these situations organisational management will make decisions based on short term gain, because that is what drives them (read increased remuneration), in such situations long term consequence seems to be something that doesn’t come into the equation.  So, in these situations, if Cloud appears to be of benefit to the bottom line in the short term, that’s the way the organisation will move.

In more mature and stakeholder focused organisation the issue is a little bit more involved.  These organisations will consider long term consequence.  Their analysis will be based on empirical information (qualitative and quantitative), so they will consider the short, medium and long terms impacts of this strategy.  Cloud, like outsourcing in the 1980’s is just another strategy to aid in the achievement of business value, albeit with more complex technical considerations.  But fundamentally, if the strategy aids in the achievement of long terms sustainable value, then it is the right decision.  However, the decision regarding whether to adopt this strategy or not is profound and one not easily reached.

I would suggest that the question of whether the adoption of cloud computing by organizations positively or negatively impacts the ability of organizations to create value by using their resources (technology, infrastructure and people) in an optimal manner is more about the ability of the organisation to fully understand their business context, understand what benefits cloud computing will provide, but also fully understand the risks involve, and then make an informed decision.  My concern is that many organisations will jump on the cloud bandwagon because it seen as the new “silver bullet”.  Unfortunately, like “off shoring” it may well come back to bite those who do not fully understand the long term risk.

Howard NicholsonLively at 6/8/2011 3:13:20 AM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

Few people would dispute the savings inherent in cloud computing about hardware and software infrastructure, but it is less clear whether they also produce savings in IT service management model based on a cloud, a key aspect in the IT environment since most costs are in management.

Looking from my experience the value of cloud services, I could say:

  • Cloud Computing offers advantages to SMEs in terms of cost reduction. You pay for what you use.
  • Expand your storage options to meet your needs without a problem, instead of having to go out and buy expensive hardware.
  • No need for the IT department have to worry about paying for future upgrades in terms of software and hardware.
  • Employees can access information wherever they are, instead of forcing them to stay in one place most of the time to access what they need.
  • Cloud Computing uses less power than traditional data centers it is important to many today.

In many cases the key advantages of cloud computing are its agility and flexibility, as well as self-service capabilities. But these characteristics are neither new nor unique to the cloud. The truly revolutionary cloud computing is that, thanks to its high levels of scalability and automation, you can get such benefits at an attractive price. As IT organizations deploy their first cloud computing applications, realizing that will achieve agility and flexibility is hard and requires new application architectures. Deploy robust applications on an infrastructure that is not so imposing redundancy approaches. Requires software architects and engineers have new technical skills.

Romulo LomparteSocial at 6/10/2011 3:32:48 PM Quote
You must sign in to rate content.
(Unrated)

RE: Week 4 Cloud Governance and Resources

Will the adoption of cloud computing by organizations positively or negatively impact the ability of organizations to create value by using their resources (technology, infrastructure and people) in an optimal manner? 

the answer would appear to be a resounding 'maybe'.  A good bit defends of the subjective definition of 'value' and 'optimal'.  What a business group would consider 'optimal' and 'creating value' may not necessarily be what IT, Finance, or the CEO would consider 'optimal' or having 'created value'.

If a solution appears to create value by enabling a value added service at a low cost but significantly changes an organizations risk profile/exposure has it been both optimal and valuable?

Should selection of a cc service be done with input from the various GRC stakeholders and a solution vetted against alternatives using a common perception of 'optimal' and 'value'... then the answer would be yes.  In any other set of circumstances the answer would have to be 'maybe'. 

Austin HuttonLively at 6/14/2011 2:06:44 PM Quote
You must sign in to rate content.
(Unrated)

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