Cloud // Software as a Service
Commentary
5/10/2013
12:46 PM
Tom Petrocelli
Tom Petrocelli
Commentary
Connect Directly
RSS
E-Mail
50%
50%

When IT Doesn't Choose Applications

Choosing and purchasing business applications continues to move to the business side of the house. Here's what to expect in the new world order.

3. IT's Role Is Changing.

This, for IT, is an "adapt or die" moment. IT is becoming less about implementing technology and even more about helping their organizations find innovative ways to use tech to achieve business goals. The IT professional's role is moving from a technologist to a business strategist. Over time, many of the technology development, maintenance and deployment roles will be performed by the software or cloud infrastructure vendors and not in corporations. This is -- and one has to be wary of such assertions -- surely a paradigm shift.

4. Hardware Will Shift With Software.

Because hardware exists to make software possible, it will go where the software goes, in this case to cloud providers and software vendors. This will drive two changes for hardware vendors. First, a portion of hardware customers will change from corporate IT to software vendors and cloud service providers. Because the software vendors take responsibility for the infrastructure they -- or cloud infrastructure partners -- will be buying more of the hardware in the future. Second, the infrastructure they deploy will need to be on a very different scale than is typical in corporate IT, capable of managing an enormous number of users. For cloud software vendors to make money, they need to aggregate as many customers as they can. The infrastructure will be on an Internet scale, not on a corporate scale.

5. Security, Regulatory Compliance, Availability, Privacy Will Still Be Problems.

When someone buys from a cloud application vendor, there needs to be a lot of trust -- trust that the vendor will maintain a highly secure, highly available environment; trust that there will be a way to place a legal hold on data and ensure regulatory compliance; trust that the software vendor, now holding mission-critical information, will continue to support the application the company relies on or won't simply go out of business.

This is another instance where strategic IT is critically important. IT professionals are the ones who have the training, experience and knowledge to ask the right questions and assess the answers. They know whether a particular application aligns with all of a company's needs, not just the surface needs of a functional unit of the business. The non-IT buyer might not consider these factors and instead buy an application that doesn't really support the business.

Knowledge workers are feeling empowered enough by their experiences with sophisticated consumer software to buy business applications at work, sometimes with the blessing of the IT department. For managers especially, waiting months for an IT-delivered solutions seems a waste of time when they can get most of what they need in a browser from a cloud application vendor. And the risk of purchasing your own cloud applications continues to diminish as large enterprise business applications such as SAP, Oracle, and Microsoft continue to make their top business applications available using a cloud subscription model.

The non-IT buyer trend will continue into the future and have a profound effect on the relationship between IT, vendors and end users. IT will always be relevant as the technology guides for the companies, providing strategic advisement. It will especially be needed to evaluate vendors on technical dimensions and help ensure business-technology alignment.

Programmers will always find a place designing and writing specialized code and building integration points between applications that vendors do not provide. For many in corporate IT, however, their role as technologists will diminish.

Software vendors will need to understand their new customers better. This is true for vendors who need to understand more deeply the non-IT buyer and hardware vendors adapting their products, service and sales practices to giant cloud companies where downtime means not one angry company but thousands.

There is still time for IT to manage this transition. IT policy needs to address the inevitable knowledge worker-empowerment issue. Creating guidelines to allow safe buying habits will certainly help. Corporate application stores, which allow knowledge workers to choose preapproved applications that are safe and secure, are either nonexistent or unknown to knowledge workers. IT should consider establishing and promoting these app stores because they represent an obvious method of meeting both the needs of the corporation and the needs of knowledge worker.

Finally, creating a partnership between knowledge workers, vendors and IT is essential to stemming chaos in future corporate business applications. IT has the opportunity to take the lead and become the internal partner that empowered knowledge workers and companies desire.

Previous
2 of 2
Next
Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
JimC
50%
50%
JimC,
User Rank: Apprentice
5/25/2013 | 3:56:22 PM
re: When IT Doesn't Choose Applications
"...deploying on-premises..."

Thank you for not making the increasingly common error of leaving off that second "s". The buzzword/term "on-prem" is wedging its way into the IT vernacular, which is acceptable as long as people know the correct, shortened word.
Ramon S
50%
50%
Ramon S,
User Rank: Apprentice
5/14/2013 | 11:18:44 AM
re: When IT Doesn't Choose Applications
Until now it was IT's job, but I found that in most companies IT is unresponsive or slow at best, then picks a solution that is the cheapest on the market and meets only a very limited amount of core features. IT is forced to buy by price and often lacks the understanding of what the business unit really needs and doesn't bother to find out. IT is unfortunately a carbon copy from the Dilbert cartoons, a service preventer rather than a business enabler. Just recently, I had a need for a 1TB external drive. It was impossible to get through IT despite us all working for a well to do multimillion Dollar company. The twist was that it had to be from Dell and that we could not use the specials from other vendors that would have cut cost in half. Next time I ask for an entire rack of servers, at least the effort will be worth the results.
Mike_Acker
50%
50%
Mike_Acker,
User Rank: Apprentice
5/14/2013 | 10:43:59 AM
re: When IT Doesn't Choose Applications
what planet are you from Tom? IT has never selected applications: IT installs the software it is told to install
8 Steps to Modern Service Management
8 Steps to Modern Service Management
ITSM as we know it is dead. SaaS helped kill it, and CIOs should be thankful. Hereís what comes next.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - July 22, 2014
Sophisticated attacks demand real-time risk management and continuous monitoring. Here's how federal agencies are meeting that challenge.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.