Is IT stuck with cloud busting budget structures?
Still dreaming of orgone?
There is no doubt that the technologies to be found at the heart of these types of solutions have matured considerably over the course of the last couple of years. However, both face significant challenges before any of the currently available offerings can be fully exploited by organisations.
For Cloud computing, chief amongst these concerns is the readiness of mainstream organisations to trust significant proportions of their essential, and hence incredibly valuable, corporate information to platforms and suppliers over whom they have little control and who might hold the data wherever they wish. Such a leap of faith is today beyond consideration in many business scenarios.
Now if we instead consider using cloud-like solutions that are operated by the organisation itself, there are far fewer objections to overcome and this "service delivery" approach to IT is already finding favour. But beyond these considerations there is another, far more challenging, issue to be addressed for both for the cloud approach to IT service delivery as well as to the concept of employing a truly virtualised, flexible IT infrastructure to support business operations across the entire range of services delivered, and this concerns the models of IT budgeting in common use today.
Most IT departments operate on the basis of budgets that are fixed in advance for the following year. The budget may be added to on a project by project basis but by and large the major areas of expenditure are identified in advance and funding limits put in place. It is readily apparent that such IT financing models are ill-equipped to cater for much variability.
In many organisations these out of date budgetary models may also interfere with attempts to manage IT resources as a whole rather than on the application or project terms that dominate infrastructure equipment acquisition today.
It is clear that traditional models for IT budget setting and management are focussed squarely as cost control metrics. This is not suitable if the potential flexibility inherent in fully virtualised IT infrastructures are to be realised and, by no means incidentally, thereby be utilised to deliver the full business value potentially available through effective IT usage.
Against this background, organisations must begin to show they can migrate to value based IT funding to be in a position to reap maximum business benefits that modern IT should, and can, deliver. This poses challenges that far exceed anything posed by even the most complex IT technology project.
Freeform Dynamics is a community oriented industry analyst firm. It is The Register’s research partner and all of its published output, including reports based on large scale telephone research and feedback from the Reg Technology Panel, is available free of charge from www.freeformdynamics.com.
Sorry mate - been around here for years and years. I added my second comment just in case anyone reading my first comment assumed that I was solely a Kate Bush pedant who didn't know where the "orgone" reference came from.
Which does beg the question, did Kate Bush just get it wrong, or did she deliberately say "still dream of Organon" in order to avoid having trouble with Reich nutjobs if she used the word orgone?
OK, so there's no IT angle here, but I reckon such speculations are at least as useful as some of the overblown cloud computing hype that sometimes gets foisted upon the world by the overexcited nerd squad... :-)
Sigh... What a load of tripe...
Hate to put it this way, but the article is just usual tripe we get to hear every time something new and cewl comes along. Just because we are doing the latest coolest thing on earth we for some reason cannot follow any financial discipline and budget requirements. Sorry, I have heard that about agile, web 1.0, wap, J2EE and a whole lot of other things. I keep hearing it about Web 2.0 and now about cloud services at the moment. And to put it bluntly it is a load of bull.
In all cases the actual underlying reason has universally been the fact that developers have no idea how their application scale and are scared to admit it so they start wimpering about open-ended budgets.
OK, to be honest here, a matter of fact, it is not their fault. It is the actual underlying process (it is actually something that is mentioned in every good UML/Unified Process book). Moving to agile has not changed that either.
Neither are cloud services. They can still be run the same way as any IT project as long as there is an idea of how they scale capacitywise. All that is necessary for that is to finally admit that the software development paradigms we got stuck with on behalf of consultants working for Ericsson (UML, OO) and Crysler (Agile) are WRONG. Granted, this will spoil the coke sniffing habit of one consultant too many, but it is the actual place where a software project should start - resource utilisation modelling, benchmarking and scalability constraints. In fact for this Cloud is probably _MORE_ compliant to the IT budgeting process than any other approach.
Neuro Linguistic ProgramMIng. AIGames for the Whole Family.... Snow White Album.
[b].... with Pandoran Applets Supplying Desserts[/b]
"In fact, is anyone actually going to get around to inventing anything new in this industry? " .... By Adrian Waterworth Posted Thursday 18th September 2008 08:38 GMT
Yes ... and the Invention is Immaculate Source.
Can you Provide IT with the Anything Similar/Compatible/Compliant for Adding Zest to ITs Controlling Powers?
>> And much of the hubbub that grew up around the orgone idea was eventually debunked as a load of old cobblers. Which will hopefully be the ultimate fate of a lot of this cloud computing nonsense,
Congratulations! You appear to finally "get" the reference in the tag line. On behalf of everyone here, I would like to welcome you to The Register. Enjoy your stay, and try not to strain yourself too much trying to figure out the witty quips from the writers in the future.
Any links to further reading?
Thank you Tony,
I managed to find your original blog on freeformdynamics after only a small rummage around the site. I couldn't find any deeper analysis though.
Can you provide any links to further articles on this subject, especially comparisons of IT funding and budget control models?
Thanks if you do, no problem if you don't.