CIOs must manage the challenges of sourcing in the cloud to gain the best returns

Cloud computing has moved rapidly from being the subject of an interesting but theoretical debate to one which is a realistic option for many companies. Yet, in exploring its potential, it is vital that CIOs take the time to find the right provider and service package and ensure that they understand the full implications of this very different commoditised service provision.

There are three essential tasks that CIOs need to undertake if they are to maximise the benefits of sourcing services from the cloud: 

1) Secure effective cloud governance arrangements

The starting point for a cloud service provider is a rigid ‘take it or leave it’ model. That makes procurement easier and drives down costs but makes governance even more important. The organisation itself will hold the governance and most companies will still need a formal operating model that sets out clear accountabilities for technical issues, with agreed service levels for performance and set liabilities if things go wrong.

2) Understand the requirements for interoperability in the cloud

The nature of cloud services means that most organisations will end up running hybrid systems. This makes it vital to understand the challenges of interoperability and integration between legacy architectures and the new cloud provision.

3) Consider the implications for service delivery

Moving to a cloud approach requires significant technical and business change, giving rise to a number of service delivery and capability issues ranging from security management to capacity planning and cost control. The retained organisation needs to understand and manage these challenges effectively.

The cloud is here to stay and there are real benefits to be secured from it but these will only be achieved if organisations get the governance, architecture and service delivery right from the beginning.

PA has more than 25 years of experience of helping companies secure the right sourcing solutions in an increasingly complex environment. That range of experience and expertise means we have a detailed understanding both of the technology underpinning cloud and the particular challenges of managing suppliers in a fast-changing environment.

To explore how PA's experts can help you maximise the potential of cloud computing, please contact us now.