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Smart Enterprise: Greater Expectations

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product opportunity," says Mike Pearl, Cloud Computing Leader at consultants Pricewaterhouse Coopers. "But with the cloud, the technology is there and they're able to get that idea to market more quickly, get feedback more readily, and capitalize on the opportunity — all without putting this very long investment and develop- ment cycle between the organization and its customers." Now, with IT able to expand easily out to the cloud for benefi ts such as additional capacity as needed, CIOs no longer need to purchase new servers or redo their networks. Besides the cost savings, it also means that IT can move away from doing low-value tasks such as patching systems and moni- toring events — and focus on innovative work such as creating new services and designing effi cient processes and quality assurance around those services. To make this new IT model work as effec- tively and effi ciently as possible, CIOs will be required to think innovatively, experts say. CIOs will need to continually evaluate their IT services, not only thinking about internal versus external suppliers, but also evaluating relative costs, quality and risk. Supply chain experts recommend that CIOs adopt a strategic lifecycle plan. Such a plan should include these IT components: ■ Planning: CIOs evaluate and priori- tize their entire portfolios of on-hand IT resources and services. Then, based on business demand, they can take the fi rst steps to the cloud by virtualizing servers and building a secure internal private cloud. CIOs who have already taken these steps may be ready for a hybrid cloud, which can make the most of internal systems and architecture while also taking advantage of external providers. ■ Evaluate Constraints: While all CIOs face resource constraints on budgets, staff and infrastructure, with the new IT supply chain model, they're no longer constrained by in-house resources. A balance of internal automation and virtualization — and the use of external service providers — can make former constraints virtually moot. ■ Compose Services: The paradigm shift in IT is reshaping CIOs into brokers of IT services to the business. In this component, CIOs ensure that the composition of ser- vices — whether from internal or external resources — can be directly tailored to meet the specifi c requirements of the business. ■ Security: Availability and performance of IT service providers, whether internal or external, must be measured, evaluated and, if necessary, fi xed. To do so, CIOs should implement solutions that manage and measure these attributes from end to end. ■ Deploy: CIOs can provide their busi- ness units with a cherry-picked catalog of approved IT services, effectively enabling the business units to become self-service consumers of IT. CIOs should also consider deploying experienced cloud management service providers to help enable a fully functional, dynamic IT supply chain. ■ Quality Assurance: Standards for quality must be set, measured and ensured with all third-party providers in the cloud, just as with internal IT resources. When working with third parties in the cloud, CIOs must also apply and enforce their own internal standards, as well as appropriate industry and government regulations. ■ Deprovisioning: No system is forever. So when CIOs want to ramp down a service provided by an internal or external provider, they'll need a plan for the data they've put there. Also, after a project winds down, CIOs need ways to quickly ramp down any utilized internal applications, staff or hardware. While all the components are impor- tant, CIOs needn't work them in sequence. Instead, they can pick and choose where to start. The new IT supply chain may also change the role of both the CIO and IT itself. In fact, the fl exibility and effi ciency of the cloud could dramatically change the way the IT function works. The CIO would no longer be the IT equivalent of a factory-fl oor worker who assembles pieces. Instead, the CIO would become, in essence, a designer of the factory, manufacturing process and supply chain process. This would be a much more strategic role, one that dramatically strength- ens IT's partnership with the business. A report published earlier this year by IT analyst fi rm Gartner supports this view: "CIOs see 2010 as an opportunity to acceler- ate IT's transition from a support function to strategic contributor focused on innovation and competitive advantage." In the report, DATA: CA Technologies, 2010 The Transformation of the IT Supply Chain From STATIC, where each IT service has its own infrastructure: To ABSTRACTION, where IT retools for the future ... operating systems are decoupled from physical hardware ... and architectures, vendors, processes and more are rationalized: To AGILE DELIVERY, where composite services are built from cloud sub-components from multiple suppliers ... and where highly automated systems assemble the services for individual customers — and distribute them through the cloud. Service Provider Service Consumer Service Provider Service Consumer Service Provider Service Consumers Service Provider Service Provider Service Provider Service Provider Service Provider Service Provider )'('SMART ENTERPRISE 15

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