How can IT and LOBs Shape Cloud Consumption

What is the current state of IT Cloud consumption? What will IT organization of the future look like, and what will IT decision makers do to be successful in this changing environment? In a wide-ranging global study, Cisco Consulting Services (CCS) along with Intel, attempts to pinpoint just how Cloud is impacting IT. The study surveyed 4,226 IT leaders in 18 industries across nine key economies including 600 from
India.

Key Cloud Impact

• In the Eyes of IT Decision Makers, Cloud is gaining traction. Despite its challenges and disruptions, Cloud is creating solutions. In the eyes of our respondents, this is considered a positive development for their organizations. (Case in point: security may be an inhibitor to Cloud, but it is also viewed as a solution to security fears.) In
  India, more than four out of five respondents believe that Cloud will positively impact their organizations
• Emerging Markets Upbeat About Cloud. Despite the overall positive attitude toward cloud, important distinctions arise between emerging and about 83 per cent of respondents In India were very satisfied and another 13 per cent somewhat satisfied, representing a total 96 percent positive rating developed markets. IT leaders in emerging nations like India, Brazil and
  China are more upbeat about cloud given its transformational and innovative potential; in developed markets it is mostly seen as a tool for cost-cutting.
• High Marks for Cloud Providers. Despite existing and potential Challenges,
  India respondents cited a high level of satisfaction with their existing cloud providers.. Given such high ratings, cloud providers in
  India are well positioned today, though they must be prepared to operate in an increasingly demanding marketplace. In a competitive marketplace, cloud providers will need to offer end-to-end solutions while orchestrating an ecosystem of partners. Accordingly, high ratings for cloud providers in our survey come with high demands: for security capabilities, custom solutions, and guarantees on service levels
• IT Wants To Feel Safe in the Cloud. No matter which vertical industry or global region was surveyed, security and privacy issues are top of mind and seen as a clear inhibitor to cloud growth. Robust security and data protection capabilities are also seen as the most critical factors for cloud service providers. In
  India, complexity of managing third parties was seen as a major limitation
  

• One Size Does Not Fit All. The cloud market is evolving rapidly, and companies today can choose from many different approaches for sourcing, deploying, and operating cloud solutions. There is no one-size-fits-all approach. Rather, companies will need to formulate an approach that enables them to meet the overarching goals for their organization. IT leaders should consider how best to partner with key stakeholders, such as LOBs and third-party providers, with an approach that is tailored for their unique needs.
• IT Seen as Front and Center Despite the rise of LOB influence, our IT respondents especially those in emerging markets like India, China and
  Brazil believe that IT will maintain a centralized and well-funded role, managing cloud solutions with consistent policy and security solutions. (Respondents in India, China and Brazil are nearly twice as likely to project an increase in the size of their IT organization as were their counterparts in Europe and
  North America.)
• But LOBs Are Gaining Influence. Over 90 per cent of respondents in
  India feel that the influence of LOBs will extend across all IT lifecycle stages and create unprecedented complexity for IT organizations as they grapple with security and technical support. As IT transforms to an as-a-service model, the interlocks and relationships between IT and the LOBs will need to change.
• The IT - LOB Partnership. Whether centralization and greater resourcing for IT is realistic remains to be seen. Regardless, IT will need to partner with LOBs in complex new ways. In the view of the IT leaders surveyed, IT will evolve to be a broker of services to LOBs, acting as a critical intermediary and orchestrator of internal and externalcloud solutionswithin the business, while also providing technical support and security
• A Wake-up Call for IT. Given the rising influence of LOBs, IT must step up to new challenges: moving rapidly, fostering innovation, enabling new end-user experiences, and positively impacting business outcomes in a measurable way

Robust security and data protection capabilities; the ability to build custom solutions; and guarantees on service availability and quality would be the important parameters for successful cloud adoption. For CIOs, the results highlight the need to embrace an emerging role: facilitating productivity; negotiating complex deals; managing constituent expectations via close partnerships with LOBs across all IT consumption lifecycle stages; enhancing organizational skills to support cloud service delivery; and understanding a rapidly evolving IT landscape.

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