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Cloud understanding introduces new opportunities

The ongoing adoption of cloud services in the private sector is changing how organizations recognize the technology's ability to meet long-term corporate demands. In the past, the cloud was initially identified for its cost-saving and pay-as-you-go pricing model, helping organizations survive the macroeconomic crisis. Today, however, decision-makers are seeing the cloud for a technology that supports agility and flexibility.

An IDC study recently highlighted these evolving perspectives, noting that many executives today also accept the cloud as a new process delivery model for more than just IT, as the technology can be advantageous for the entire organization. Analysts said the momentum of Infrastructure as a Service offerings like virtual private cloud solutions is providing companies with a new perspective into how they can develop and launch innovative applications across multiple departments.

In addition to the ongoing use of virtual private clouds, the proliferation of IT and cloud infrastructure vendors is driving the IaaS market, IDC reported. This movement is encouraging decision-makers to see the benefits behind hybrid offerings, which combine both on-premise and hosted infrastructure services. It also drives the "outsourcing 3.0" mentality, in which most corporate tasks are carried out in the cloud.

"Cloud service future ubiquity will mean that it will permeate the sourcing strategies of CIOs and business unit managers alike," said Raj Mudaliar, senior analyst IT services at IDC. "The use of externally sourced businesses and IT services from 'the cloud' will form the basis of an outsourcing 3.0 period and will provide an extensive portfolio of services from which innovative solutions will be constructed from."

A separate study by a leading computing agency highlighted how the cloud will continue to change corporate business models and strategies as decision-makers become more familiar and comfortable with the technology. This is because companies are recognizing the cloud's benefits beyond the financial realm, as it can support long-term flexibility and agility to introduce major changes throughout the enterprise.

In the coming years, this recognition will drive the cloud market forward and encourage firms that have yet to adopt the cloud to at least consider doing so. As a result, the private sector as a whole will become more efficient, improving customer relationships and increasing revenue.

By taking the time to learn more about the cloud, executives can read between the lines and see benefits that other organizations may not recognize, opening up new doors to gain a competitive advantage.

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