Published on the 08/09/2015 | Written by Donovan Jackson
Cloud computing isn’t a technology discussion, it’s a business driver…
While general consensus on the value and applicability of cloud computing may have been reached by those within the technology industry, there is a new front opening up on which the advantages need to be brought across. That’s according to Keith Archibald, Revera’s head of innovation.
Speaking at 2015 NZ Cloud Computing Conference which took place in Auckland yesterday, Archibald said the industry needs to do a better job of articulating the benefits and advantages of cloud computing. “A major challenge facing businesses today is differentiation. What differentiates one company from another is how quickly it can customise and deliver new capabilities to market, does it have agility, can it fail fast without spending a lot, can it defend against disruption and be a disruptor. It isn’t business as usual and value doesn’t come from ownership, but from intellectual property.”
After drawing attention to the advantages of cloud computing familiar to those in the IT industry, Archibald said New Zealand businesses are ‘not doing great’ at cloud computing, saying just one in three are using it (a fraction which IDC’s research director Adam Dodds would dispute). “We need to move away from cost [as the sole advantage of cloud] and hype. Cloud is a business enabler, and not an IT technology [sic]. It’s a business model and ‘degeekification’ is required.”
Archibald said there were still structural issues between the tech department and the rest of the business, making the point that technologists are likely to readily agree that services can be priced per second if so desired – but noting that those in the finance department might be surprised by that.
“Cloud computing is a little bit like climate change; people on either side have a vested interest in arguing it. However, unlike climate change, you can assess cloud computing yourself by trying it.”
He added that those against cloud computing typically produce TCO models flawed in favour of on-premise technology deployments.
OneNet CEO Michael Snowden said the cloud is a platform for innovation which can potentially drive massive global GDP growth and advocated moving as much to the cloud as possible. “Think about your organisation’s core competencies, the things you do which add value. There are only three or four; if you think you have ten, take another look.”
He commented on the advantages of the ‘as a service’ approach to procuring non-core competencies with interesting examples, noting that anything can be offered as a service, including, ‘tyres as a service’ to the freight industry or ‘thrust as a service’ to airlines. “When ownership [of tyres or jet engines, or anything else] is vested in the manufacturer, knowing the cost means the ability to price better.”
