World is changing: digital transformation is in progress
The use of Cloud computing model for business application is on going. The digital transformation of companies moving to a Cloud Computing model is a reality and the Cloud market now grows three times faster than the hardware and software infrastructure (source Synergy Research Group).
Digital transformation started with The adoption of a Software as a Service (SaaS) model by consumers for applications such as online music, webmail or social network. This “As a Service” uses have emerged in companies with business applications such as customer relationship management for sales teams mostly without any implication of the IT department.
Impact of Cloud models on business IT
50% of the IT business expenses are made today outside the IT department by the “Lines Of Business“. SaaS model accelerate the adoption of both technology and services for an operational function in the customer side but sometimes with a poor integration with the information system of the Enterprise.
Now, this is the information system of the enterprises that tends to migrate under this mode of operation. With the Cloud computing the enterprises outsource the technical management of their infrastructure (hosting, servers, software, applications), in order to have shared, standardized and dematerialized solutions, available from the networks by employees at anytime and anywhere. On these platforms, CIOs focus on business applications transformation.
Return on value
Cloud computing has change drastically the financial model of IT services. Costs are more and more driven in OPEX mode has charges and less in term of CAPEX (investments).This is a good thing for the balance sheet of the enterprises and is an easy way to see what are the rcosts in front of the services provided.
Companies are less and less considering the IT department as a cost center that needs to be brought closer to measurable financial gains (ROI). The trend today is to measure all the contributions made by the managed applications, such as customer satisfaction or employee efficiency, in order to have a global approach to the benefits of services rendered : this is sometimes named ROV : Return On Value…