Saving money is nothing compared to beating your competitors to market with a better product.
This is the revelation that’s rapidly taking hold in the enterprise CIO’s office. Until very recently, most enterprise IT leaders would tell you that their primary goal in moving to cloud computing was related to cost reduction, primarily through server consolidation. Occasionally, you might find an adventurous CIO talking about infrastructure automation and end-user provisioning.
Now, these CIOs are beginning to realize what SaaS providers figured out several years ago: the real benefit of cloud computing lies in business transformation, not cost compression.
This dawning realization is what’s led us to build two sessions about the practical implications of cloud disruption at Cloud Connect Silicon Valley next month. In the first session, we will look at the tools and techniques driving the cloud disruption. In the second, we’ll present new business models and case studies from enterprises who have used cloud to accomplish goals that were impossible with traditional IT organizations.
First, a panel of IT leaders and thought leaders will survey the tools and techniques enterprises are embracing to accelerate their time to value in cloud deployments while improving the ability of user communities to drive new streams of competitive differentiation by developing, testing, deploying and iterating applications faster than ever before.
Rather than looking at edge cases and exciting but unproven technologies, the panel will focus on cloud technologies and tools that are available, proven in production environments and ready to deploy. Randy Bias of Cloudscaling will talk about the disruption of open source projects, while Keith Shinn from Fidelity will give an example of his organization’s transformation through implementation of OpenStack. Niall Dalton from Calxeda, will talk about disruptive hardware innovations such as ARM processors.
Our goal is this first part is to give participants a high-level understanding of which tools are solid choices for their enterprise cloud deployments.
In the second session on disruption, we’ll take a closer look at specific examples of organizations that have embraced cloud technology AND new IT organizational protocols to unleash the creative potential of their internal users to build, launch and iterate new apps faster than ever before.
Enterprise executives who have done this will share their stories, and participants will hear how these leaders helped their organizations first understand and then embrace the agility, flexibility and dramatic time-to-market compression that cloud enables. We’ve asked Anand Palanisamy of PayPal to talk about the increased agility and development cycle compression that has helped make his company more responsive to customer needs and competitive threats.
Building sustainable competitive advantage through a transformation in business model assumptions is the real benefit goal of cloud migration. That’s why we built two sessions dedicated to the topic. Come, and hear about it for yourself, or watch for a mid-April summary of what the speakers shared about using cloud technology to align the IT service delivery process and help their organizations launch flexible new business models that drive new revenues and profitability.

I suspect that not many CIOs were completely blind to the time to market benefits of cloud & SaaS offerings over the past few years. Rather, those with an interested to adopt cloud still had to live within the political and budget constraints of recession thinking. Whatever they did they had to be seen to conform with corporate recession strategies. So cloud was justified for cost reasons, whatever the underlying motives, and enabled CIOs to meet their targets.
If you are now truly seeing an increase in CIOs openly discussing cloud benefits of competitive business development I feel might be a strong indicator that there is an increase in boardroom optimism. If open discussion of change for growth goes unpunished maybe its because others in the boardroom are now looking for that growth and CIOs have a new set of KPIs to meet.
Not so much a revelation of cloud as a baromoeter of boardroom optimism?
That would be terrific news for everyone – not just cloud advocates!