Feeds

Is IT stuck with cloud busting budget structures?

Still dreaming of orgone?

High performance access to file storage

Freeform DynamicsComment A lot of noise is currently being generated around Cloud Computing and flexible IT infrastructures based on virtualised platforms.

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In many organisations these out of date budgetary models may also interfere with attempts to manage IT resources as a whole rather than on the application or project terms that dominate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.

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.