The next BriefingsDirect composable cloud strategies interview explores how changes in business organization and culture demand a new approach to leadership over such functions as hybrid and multi-cloud procurement and optimization.
We’ll now hear from an IT industry analyst about the forces reshaping the consumption of hybrid cloud services and why the model around procurement must be accompanied by an updated organizational approach — perhaps even a new office or category of officer in the business category.
Here to help explore who — or what — should be in charge of spurring effective change in how companies acquire, use, and refine their new breeds of IT is John Abbott, Vice President of Infrastructure and Co-Founder of The 451 Group. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.
Here are some excerpts:
Gardner: What has changed about the way that IT is being consumed in companies? Is there some gulf between how IT was acquired and the way it is being acquired now?
Abbott: I think there is, and it’s because of the rate of technology change. The whole cloud model is up over traditional IT and is being modeled in a way that we probably didn’t foresee just 10 years ago. So, CAPEX to OPEX, operational agility, complexity, and costs have all been big factors.
But now, it’s not just cloud, it’s multi-cloud as well. People are beginning to say, “We can’t rely on one cloud if we are responsible citizens and want to keep our IT up and running.” There may be other reasons for going to multi-cloud as well, such as cost and suitability for particular applications. So that’s added further complexity to the cloud model.
Also, on-premises deployments continue to remain a critical function. You can’t just get rid of your existing infrastructure investments that you have made over many, many years. So, all of that has upended everything. The cloud model is basically simple, but it’s getting more complex to implement as we speak.
Gardner: Not surprisingly, costs have run away from organizations that haven’t been able to be on top of a complex mixture of IT infrastructure-as-a-service (IaaS), platform-as-a-service (PaaS), and software-as-a-service (SaaS). So, this is becoming an economic imperative. It seems to me that if you don’t control this, your runaway costs will start to control you.
Abbott: Yes. You need to look at the cloud models of consumption, because that really is the way of the future. Cloud models can significantly reduce cost, but only if you control it. Instant sizes, time slices, time increments, and things like that all have a huge effect on the total cost of cloud services.
Also, if you have multiple people in an organization ordering particular services from their credit cards, that gets out of control as well. So you have to gain control over your spending on cloud. And with services complexity — I think Amazon Web Services (AWS) alone has hundreds of price points — things are really hard to keep track of…
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