Back in 1724 Edward Ward famously noted that death and taxes are the only two certainties in life – had he lived in the present day he may well have added the adoption of cloud computing to this list. While 2014 may not feature in the history books, it has, nonetheless, been an important year in which cloud continued its steady march into the mainstream. The majority of companies are now committing to the technology model, basing their long-term business strategy on the benefits it can offer. It’s been a slow process but organisations have begun to cut through the myths and hype surrounding cloud computing and understand the value – and limitations – it presents.
Although we can expect the rise of cloud to continue unabated into 2015, businesses are starting to ask new questions about its impact on working practices, IT security and data availability. So, here are my reflections of the cloud’s developments over the past year – as well as some predictions as to what we’ll be talking about over the next 12 months.
Market maturity
Cloud computing has emerged from its awkward adolescent stage. As recently as three years ago cloud-based providers would expect to be placed on a tender with several on-premise competitors; today organisations are increasingly stipulating that any solutions must be delivered via the cloud. Most industries and market sectors within the UK have joined the cloud-first mindset, keen to take the cloud route whenever the option is available.
Looking forward, the cloud-by-default approach will continue – serving as a wake-up call for businesses that are yet to make their first foray into the “as-a-service” computing market. At this point, if your business still doesn’t have a cloud strategy then I have to tell you: you’re at least a year behind the competition.
IT culture
I’ve already discussed cloud computing’s role in making businesses of any size more agile and I believe the cloud will continue to have a significant impact on the way businesses deploy their IT solutions. Throughout 2014 we’ve seen an increase in hyper-growth organisations – companies which can react to market events and opportunities at an unprecedented rate – with the cloud playing a central role in their success. By offering immediate access to data, businesses can make better strategic decisions expanding into new markets and taking advantage of short-term selling opportunities.
Of course, change strategies can only work if the organisation can keep up. In the last year we’ve found that many IT departments are planning with considerably shorter deployment times. In 2015, we’ll see businesses foregoing the traditionally year-long IT implementations plans, instead expecting to roll-out new, critical applications in a matter of months or even weeks. Providers must be ready for this change.
Shadow IT
Shadow IT, the scourge of the chief information officer (CIO), has been a key issue of 2014. With end-users finding cloud services more accessible than ever before, IT spending without the CIOs knowledge has increased. Technology is now so crucial to every aspect of business it’s no surprise that decision-makers are finding ways to purchase the applications and services they want to use. It’s a trend that shows no signs of slowing down, with Gartner predicting that by 2017 chief marketing officers (CMOs) will be spending more on IT than CIOs. On one hand, departments are able to work in the way they find most efficient. However, it can leave organisations at risk of data leaks and losses through the use of unapproved suppliers.
The flexibility of cloud services offers a double-edged sword for CIOs and they will need to take steps to not simply curtail this freedom but nurture it in a productive way.
Over the next year, I believe that we’ll see IT departments begin to move against shadow IT by shifting focus from an end-user centric model to becoming a service provider. IT departments will look to provide a framework that provides freedom for individuals to explore their own working practices.
Cloud concerns
The post-Snowden landscape has seen no slowdown in the adoption of cloud computing, though it has left organisations concerned over the location of their data. These worries will take on a new shape in the next year as businesses begin to raise the question of responsibility for data security: who is accountable, end-user or supplier? The imminent EU data protection regulation should also help raise this debate up the boardroom agenda.
It’s an exciting year ahead, with the cloud’s influence set to grow as it continues to play a pivotal role. The freedom and agility it offers organisations will help in unlocking new, creative business models that can better serve consumer needs – a benefit that we are only just beginning to appreciate.
Ian Stone is the managing director of Anaplan, UK and Ireland
Read more stories like this:
• Advertisement feature: EU data protection reform: 12 things businesses need to know
• From net neutrality to copyright: media law trends for 2015
• Social media and the law: tips for businesses
To get weekly news analysis, job alerts and event notifications direct to your inbox, sign up free for Media Network membership.
All Guardian Media Network content is editorially independent except for pieces labelled “Brought to you by” – find out more here.
