1 In 3 Employees Playing Roulette With Their Companies In The Cloud

here is clearly a massive push towards the adoption of cloud, but it is not consistent across industry sectors or company sizes. But recent research makes scary reading. A survey by TPI, published by ComputerWeekly showed only 5% of CIOs has their cloud strategy in place, and only 20% even have the resources to develop it!!!

But what is more worrying is that end users are taking matters into their own hands. Forrrester Research‘s assessment is that 1 in 3 employees are regularly using at least 2 apps or websites that require a login (ie cloud app) that are unsanctioned by IT. You can understand why. The appeal of the cloud is compelling.

In the absence of a cloud strategy the Citizen Developer or HEROes (highly empowered and resourceful operatives) as Forrrester Research named them are using cloud apps. This is not a good position for the CIO to get into. End users are putting the business at risk with no understanding of the smart questions to ask, let along the validity of the answers given by Cloud vendors.

They are ‘unconsciously incompetent’- they don’t know what they don’t know. Or as Donald Rumsfeld so eloquently put it

“There are known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we know we don’t know. But there are also unknown unknowns. There are things we don’t know we don’t know.”

So, for the 95% of CIO who don’t have a cloud strategy, this should be a wake up call. Until they get ahead of the business users they are letting them put their companies at risk; security, compliance and reputational.

In short they are gambling. And as we all know – the house ALWAYS wins.

If you were a startup today planning your assault on the world – possibly the group huddled furtively in the corner of the Pret-a-Manger where I am typing this – then you would be mad to ever buy a server. everything you need to run your business from a start up to IPO can be consumed in the cloud.

But, if you are a global enterprise with years of investment in legacy infrastructure and applications like SAP and Oracle then a move to a public cloud for 100% of your business will not happen. For a number of reasons; cost, security and job security. Certainly the CIO can use cloud apps to relieve the IT backlog for non-core applications whilst they get their Cloud Strategy together.

Ian Gotts is CEO and Chairman of Nimbus Partners, an established and rapidly growing global software company, headquartered in the UK. He is a very experienced senior executive and serial entrepreneur, with a career spanning 25 years. Ian has co-authored a number of books including “Common Approach, Uncommon Results”, published in English and Chinese and in its second edition, "Why Killer Products Don't Sell" and books covering Cloud computing from the perspective of both the prospective buyer, and the software vendor. Having begun his career in 1983 as an engineer for British Rail, Ian then spent 12 years at Accenture (nee Andersen Consulting) specialising in the project management of major business critical IT projects. During this time, he spent two years as an IT Director, seconded to the Department for Social Security (DSS), with a department of over 500 and a budget responsibility of 40 million pounds.

  • The move to using Cloud solutions is moving very rapidly; faster than most people estimated just 6 months back. I agree, a startup today will not buy IT, but rather use applications from the Cloud. I also agree that an Enterprise company will not move to Cloud offerings over night. Nonetheless, we see clear indications that they are starting to move some of their solutions to Cloud, either internal or external Clouds – or combination of the two. The reason for this is to meet the agility and flexibility demanded from the business.

    Within a range of other sectors, Enterprises will surely look towards Cloud as a platform for the new applications they need today and in the future. If CIO’s of these Enterprises don’t support this and act as the gatekeepers to this process, business users will go directly with potential security and compliance risk, risk of data integrations and very limited guarantees around delivery quality. Please find my latest blog on the future on how Cloud will look within business here: http://bit.ly/9SQat4