Cloud Computing & Hosted PBX News – Dallas, TX
Cloud Computing & Hosted PBX News – Dallas, TX

Making the Move to the Cloud

Accenture has an in-depth report with advice on how banks should view and implement cloud computing services. Here is an excerpt on the process banks should follow to make the move. I think these steps apply to any business considering the move to the cloud:

As they plan their migration to cloud computing, bank executives should consider the following actions.

Ask hard questions and demand data-based analyses regarding cost savings. Don’t assume automatic and substantive cost savings. Do an ROI analysis. Consider conversion and ongoing costs as well as savings. Don’t be intimidated by the jargon. Experiment or pilot on low-hanging fruit such as workgroup applications, or on a nonmission critical, nonintegrated application. Then be ready to scale once you’ve proven the benefits are worth it.

Understand the condition and scope of your entire application portfolio and create a prioritized list of which should go to the cloud and whe
n. Security and regulatory concerns undoubtedly will play a major role in determining which applications can move to the cloud and which likely will always have to remain in house. However, another determinant is the lifecycle of the application. If, for example, a bank knows that one of its applications is due for a major upgrade program in two years, that could well be the trigger point to move it to the cloud because it would be worth the investment to recompile the application onto a new platform. Thus, it’s helpful for banks to create a sort of decision tree around their application portfolio, that includes identification of interdependencies among them, that is based on the lifecycle of all applications—when each will require an upgrade or replatforming due to age or functionality. In other words, a very measured, longer-term evolution, rather than a mass migration, of applications to the cloud makes the most financial sense.

Establish a clear governance structure for cloud computing. Many organizations have rules and structures in place that govern how IT decisions are shared between departmental leaders and IT executives. Use them (and if they don’t exist, create them) to decide who inside and outside the IT organization should be engaged in decisions on cloud computing, and what decision making rights and responsibilities they have.

Inspect what you expect. When dealing with the cloud, service-level agreements are crucial because cloud computing entails reliance on third parties. Thus, choosing a service provider that meets a bank’s SLAs is vital. Furthermore, SLAs are important because cloud services are more measurable and can be shared and orchestrated.
For instance, a bank can replace one service provider with another, depending on its business and IT requirements, and will be able to manage demand and capacity in a very granular level with a flexible sourcing strategy.

Keep cloud efforts on track. Make sure cloud computing receives the focused thinking, planning and follow-up it requires. Identify and address both immediate and longer-term business needs and opportunities that lend themselves to cloud computing, develop a plan for using public and perhaps private clouds, and gain the capabilities the plan requires. Make sure the organization senses and responds appropriately to the impact clouds are having on their operations.

Set the standards for success. Provide the necessary oversight to the IT organization. Make sure goals and deliverables are well understood, and projects are well aligned with business needs. Clarify how the value from cloud computing is to be determined: which quantitative and qualitative benefits are sought? And consider what else constitutes success besides value achieved and projects completed: skills developed, partnerships established, and risks addressed.

Provide the necessary support. Besides financial resources and technical talent, support other activities that will underpin the success of cloud initiatives. For example, organizations may benefit from a community of practice or a cloud program office to develop the skills and share the experiences of people engaged in cloud projects.

Buy cautiously, appraise frequently.
It’s too early to predict who the major cloud providers will be in a few years, what capabilities they will deliver,when they will deliver them, and how well. So when selecting cloud providers, carefully consider whether they have the potential to be a desirable partner in the future. Even after they are chosen, evaluate your partners on their financial stability, as well as their ability to improve functionality and service levels, to integrate data across different technology platforms and cloud services, and to deliver on their promises.

Brian