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Organizations are driving multiple benefits by shifting to the cloud

The Relentless Rise of Cloud Computing

Cloud computing is growing relentlessly and this is affecting every sector, including nonprofit and education. The common challenges of lacking time, resources, and expertise are preventing social impact organizations from making the most of cloud computing, but that doesn’t mean you can avoid the impact. The cloud market is expected to grow at a compounded annual growth rate of 19% to 2022: 

Source: https://www.statista.com/statistics/477702/public-cloud-vendor-revenue-forecast/

 

So what does that mean for your organization? 

Death of the Data Center  

The relentless growth of cloud computing has profound implications for data centers. Gartner predicts the death of the data center: It predicts that by 2025, 80% of enterprises will shut their traditional data center. As of the close of 2018, 10% already had. This will drive the continued growth of cloud computing.  

Source: https://www.gartner.com/en/newsroom/press-releases/2018-12-04-gartner-identifies-the-top-10-trends-impacting-infras 

The shift to the cloud is affecting all organizations – not just those that have run data centers. It’s affecting every day businesses, government departments at all three levels and SMEs (small and medium sized enterprises).  

Cloud offerings give clients better security. When he was CEO of Cisco, John Chambers used to frequently say: “there are only two types of companies: those that have been hacked and those that don’t know that they’ve been hacked.”  

Small organizations can’t afford to have the high salaried experts on staff to be 24/365 monitoring network threats. Working in the cloud provides FAR higher levels of security leaving hackers to target networks that are easier to compromise.

The Role of IT Professional is Shifting
IT professionals are no longer focused on cabling, patching, and virus updating. They can and should be focusing on more strategic areas – working with departments to add value for the organization.

Provisioning
In a normal organization a new project will have to requisition a new server. And then wait weeks for it to be set up. If the pilot project goes well it can expand. If it doesn’t the organization then has to dispose of the asset. With the cloud a new project can be up in hours, expand as needed, or be collapsed back to nothing.

Canada’s Critical Not For Profit Sector
Canada’s nonprofit sector generates over 8% of the nation’s GDP – more than the entire retail industry – but only 11% of nonprofit staffers say their organizational approach to digital is “highly effective”.

Interesting Insights

Prius Effect
Cloud offers to give clients real-time systems. Giving people real time feedback can be a big driver of organizational improvement. On a personal level here’s an example: real-time feedback for drivers on their fuel consumption can increase fuel efficiency by up to 15%. It’s called the Prius Effect – named after the Toyota Prius. Once drivers were given real-time feedback on fuel consumption fuel efficiency immediately improved.

Success Factors
To be successful in the future, organizations will have to have the 4Fs as noted by Rosabeth Moss Kanter when she was the editor of the Harvard Business Review: fast, flexible focused and friendly. The cloud allows organizations to provision new projects in hours instead of weeks, compared to the traditional data centre model. It allows for far more flexibility: a test or pilot can be up the same day, run and then be either shut down or expanded as required. For IT professionals, it is a far more friendly environment to work in, finally, it allows IT professionals to focus on what is important – enhancing the capacity of departments and improving organizational processes as opposed to focusing on IT infrastructure.

Jim Harris is the author of the Blindsided which focuses on disruptive innovation. The book is published in 80 countries worldwide and is a #1 international bestseller. You can follow him on Twitter @JimHarris or email him at jim@jimharris.com

See Jim speak at Fuel Good on January 30, 2019. Get your tickets today.

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