Cloud computing is gaining momentum. As cloud offerings gain maturity, cloud service providers are becoming more competitive. Some providers are reducing prices as they realize investments and leverage economies of scale. Others are differentiating based on quality, for example, providing better availability, improved security or enhanced ability to manage services. While the benefits of cloud computing are real in economic, strategic and operational terms, realizing those benefits is not a simple process. To achieve the benefits of cloud computing, adoption drivers must be aligned with enterprise goals and objectives, and business and cultural factors must be favorable for adoption. Like any investment, cloud projects should be guided by the board of directors to ensure value creation and minimization of risk. When evaluating cloud initiatives, board members should ask their management teams specific questions, the answers to which will determine whether cloud services will have a positive and sustainable impact on enterprise goals and whether risk remains within enterprise tolerances.
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This report provides an understanding of the level of cloud market maturity and explores the factors that will increase growth in the market as well as those that limit acceptance and reduce the benefits that enterprises can receive from cloud computing. To enterprises involved with cloud computing, the report provides:
- Recommendations to address important cloud-related issues
- Guidance for individuals to help them better understand cloud market maturity
- How to address factors that inhibit the ability to realize the value of cloud computing
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Marketing hype claims that cloud computing can help any enterprise meet most IT service needs at a lower total cost of ownership (TCO) and higher return on investment (ROI). However, the promise of the cloud requiring minimal capital investment and the subjectivity of some cloud benefits have created some confusion among IT professionals trying to determine the benefits of adopting cloud services. Calculating ROI for cloud services requires some up-front work to understand business requirements, organizational maturity, control considerations and regulatory requirements and to quantify benefits and costs associated with the cloud model that the enterprise has selected. To determine whether the cloud is a viable option, it is necessary to separate the hype from reality.
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Security Considerations for Cloud Computing presents practical guidance to facilitate the decision process for IT and business professionals concerning the decision to move to the cloud. It helps enable effective analysis and measurement of risk through use of decision trees and checklists outlining the security factors to be considered when evaluating the cloud as a potential solution.
There are five essential characteristics, three types of service models and four major deployment models to be taken into account relative to cloud computing. To ensure a common understanding of these models, this publication describes the characteristics of each characteristic and model.
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The drive for value, the need to reduce technology costs and the business demand for increased agility in how technology is used have caused enterprises to adopt cloud computing strategies. Cloud represents a fundamental shift in how technology is acquired and managed in enterprises. This shift can result in pressure on the enterprise when its structure, culture, policies and practices, and enterprise architecture have not evolved to address the changes inherent in the cloud computing shift. This paper describes the nature of cloud computing and areas of pressure that, when not addressed, can increase risk to the enterprise. It also presents six principles for cloud computing adoption and use that can guide management toward more effective cloud implementation and use, reduction of pressure points, and mitigation of potential risk.
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