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How to Use the Cloud to Become a High-Velocity Business

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Relentlessly Slash & SaaS

Companies need to do what they're uniquely good at. Focusing on one's core competency isn't a new idea -- companies aren't going around making their own office furniture, for example. But in the past five years, companies have realized that this concept also applies to their IT departments. Maintaining your own servers to run packaged apps is increasingly seen as a bad idea, because the economics are so unfavorable. A SaaS software company can amortize its technical operations costs over thousands of customers.

Five years ago was a pivotal moment in business. It's what Al Sargent, senior director, Product, at OneLogin, calls the "cloud awakening," and it's when Marc Andreessen wrote a seminal article in the Wall Street Journal on Why Software Is Eating the World. To be clear, Andreessen wasn't the first person to understand this; he cited a number of businesses that intrinsically understood this and made it a central part of their corporate cultures, including Google, Netflix and Amazon.

What made this article pivotal was that it led business leaders at companies outside of the technology sector to begin to embrace the idea of competing through software. Maybe it was the clarity of Andreessen's writing, or the fact that he published it in a preeminent business publication, but after the article, Sargent started talking to many senior business leaders at mainstream firms asking about the article and what next steps they should take.

These business leaders realized that they need to affect change, and fast. They saw that their internal IT departments were hamstrung from implementing this change, since roughly 80 percent of their budgets were focused on simply maintaining existing systems -- a situation that had been in place for years. So, what were they to do?

Cloud computing emerged as a way out of this dilemma. Companies could bypass their deadlocked IT departments to subscribe to SaaS applications running in the cloud. These SaaS providers provided functionality as quickly as someone could type in a corporate Amex number, delivering corporate agility faster than internal IT could ever hope to.

Fast forward five years, and Sargent states that we now see five trends that are critical to embrace when shifting to cloud computing to increase business productivity.

 

Related Topics : IBM Looks to Redefine Industry Standard Servers, APC, Brocade, Citrix Systems, Data Center

 
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