This was first posted on businesscloud9 in July 2012
It puts IT in the hands of the external specialists working inside the Cloud . And by centralising IT and the skills, costs can be reduced, risk can be reduced, and businesses can focus on their core skills giving improved time-to-market and business agility.
But where does this leave the customer’s IT department? Can they all go home or do some of the roles remain, or are there actually new roles created? Will we have the skills needed for this new environment?
Let’s look in more detail at some of these roles and the impact that the extreme case of moving all IT workloads to external Cloud providers would have on them:
Strategic direction is still important in the new environment. Business Technology and Governance Strategy is still required to map the Cloud provider‘s capabilities to the business requirements. Portfolio Management & Service Management Strategies have increased importance to analyse investments, ascertain value, and determine how to get strategic advantage from the standardised services offered by Cloud . However, the role of Enterprise Architecture is significantly simplified.
Control is still needed although the scope is significantly reduced. IT Management System Control retains some budgetary control, but much of its oversight, coordination and reporting responsibilities are better done elsewhere. Responsibility for Portfolio Value Management & Technology Innovation is mainly handed to the Cloud provider.
At the operational level, Project Management is still required while Knowledge Management has reduced scope but best practices and experiences will still need to be tracked.
The scope of IT Business Modelling is reduced as many of the functions in the overall business and operational framework are no longer required.
There are changes in administration control. Sourcing Relationships and Selection is critical for the initiation and management of relationships with providers. Financial Control and Accounting will continue to manage all financial aspects of IT operations. HR Planning and Administration is still required, but the number of people supported is reduced. Site and Facility Administration is no longer needed.
All of the operational roles in IT administration have increased importance. IT Procurement and Contracts as well as Vendor Service Coordination are needed to manage the complex relationships between the enterprise and Cloud provider. Customer Contracts and Pricing is needed for the allocation of Cloud costs to internal budgets as well as providing a single bill for services from multiple Cloud providers.
Service Delivery & Support
The main casualties of the move to Cloud are the build and run functions. The Service Delivery Strategy will remain in-house, although once the strategic decision has been made to source solely from the Cloud this becomes largely redundant. Responsibility for the Service Support Strategy moves to the Cloud provider.
Service Delivery Control and Service Support Planning also move to Cloud provider, while the Infrastructure Resource Planning functions are likely to be subsumed into the Customer Contracts and Pricing administration role.
Responsibility for Service Delivery Operations and Infrastructure Resource Administration moves to Cloud provider. However the help desk and desk-side support services from Service Support Operations remain essential activities for initial level 1 support, but beyond this support will be offered by the Cloud provider.
Governance is a critical capability, particularly around maintaining control over SaaS adoption. Integration of services will be a challenge, but perhaps this will also be available as a service in the future. Relationships with partners and service providers in all guises will become increasingly important.
There is a potential issue with skills. With many of the traditional junior roles in development and operations moving outside the enterprise, it’s hard to see how candidates for these new strategy and coordination roles will gain the experience they need. Academia therefore has an important part to play in ensuring that graduates are equipped with the right skills.
1. Most current job roles remain, although many have reduced scope or importance.
2. Fewer strategic roles are impacted than control or operational ones.
3. Build and Run are the main functions which move to the Cloud providers.
4. Planning and commercial skills are key; linking the IT department more closely to the business
In my next blog post here I discuss Delivering the new skill sets needed for cloud.