892RA Switched-on: Cloud IT is Now About Business Velocity
For the past several years, the emphasis on most Cloud IT (i.e., SaaS, IaaS) acquisition and deployment by user enterprises has focused primarily on reducing costs and internal process improvement. One of the key selling points for enterprises of all sizes has been the ability to rapidly deploy without significantly affecting IT capital outlays. These factors alone could account for the vast majority of Cloud acquisition and deployment by user enterprises.
Within the past 12-18 months, however, Saugatuck has seen a dramatic and compelling surge in enterprise Cloud adoption and use by large enterprises – not only at the “fringes” of the business solution portfolio, but increasingly at its “core.” In many ways, this is being driven by factors beyond those that drove first-generation growth. The rapid, almost rampant, adoption and use of Cloud IT today is driven by an accelerating desire and demand by business executives to transform and improve their abilities to do business. Saugatuck has used the term “IT velocity” to help articulate the infrastructure and services aspects of this trend (874CLS, Can the Cloud Help Enterprises Achieve “IT Velocity?”, 14Apr2011). Based on analysis of our most recent research among enterprise and SMB executives and managers, we are adding the term “business velocity” to the Cloud lexicon as well.
Leading-edge Cloud buyers and users today seek something well beyond the traditional business benefits of Cloud noted above. Leaders are strategizing on, and investing in, Cloud to achieve business and IT transformation.
The net for Cloud buyers and providers is this: The Cloud opportunity is not just about the consumption of SaaS business solutions or IaaS storage or compute services. Cloud is about the transformation of enterprise business, and the increasing speed of that transformation.