Interesting post from Mike Gammage on the current "Cloud" mania overtaking IT:
There's a similar sense of mass delusion, and nowhere more than in the world of outsourcing. A.T. Kearney's Arjun Sethi created a stir last year with The End of Outsourcing As We Know It, arguing that Cloud services will replace existing IT outsourcing within five years. HfS published Cloud Will Transform Business As We Know It, quoting results from its research collaboration with the LSE on Cloud in outsourcing.
The hype about Cloud is obscuring some truths that won't go away. Many of these clouds are going to precipitate as tears before long.
At Nimbus, we've seen a lot of systems implementation failures. Often we're the first process paramedics on the scene. The consultation with the distraught exec usually ends: "So let me get this right - you set about this ERP implementation without a clear understanding of your end-to-end processes, or of how automation would impact them, or a means of effective collaboration for the stakeholders, or a means to publish the new processes in a way that would make it easy for the end users who would execute them, or a governance framework?".
The truth is, of course, that whether it's a Cloud service or on-premise, a successful implementation requires exactly the same rigor.
Ouch.? Definitely a heavy dose of reality.
March 11, 2011