Learning Points from 6 Months of Life in Cloud Computing

Over the past six months I have taken a diversion away from my normal discipline of Enterprise Architecture to build up a Cloud Computing practice for my current employer. My focus has been on Google, Amazon, Microsoft and Force.com rather than my more normal Zachman, TOGAF, governance and architecture models. As a result I haven't posted much on enterprise architecture recently but I have learned a great deal. One of the most important things I have learnt is that many enterprises are really not ready to move to the cloud in any meaningful way. Yes, they might run the odd pilot to test the water but the implementation costs of most cloud projects mean that the ROI is just not there in the short term. The recognition that they can reduce their operational costs significantly in the longer term doesn't seem to be important enough quite yet.

Another learning point for me is that even allowing for the potential cost savings in the longer term, the leveraged platform nature of many cloud solutions means that there will be enough of a requirements gap to make most enterprises think twice before moving to the cloud. Often, it isn't the functional requirements that cause the problem, it is non-functional aspects like compliance, privacy, service and data location and even data sovereignty concerns that create the real adoption barrier. No doubt this will change over the medium term but it won't be this year.

Looking further ahead, I can see organisations initiating pilots this year but I can't see any large scale corporate adoptions until the tail end of this year and probably more so in 2010. In my view, the perception of the enterprise is that the cloud is just not quite there yet...

Google Launches Google Apps Reseller Program

With the recent release of Google's Google Apps Reseller Program and the improved economics that goes with a reseller model, I predict we will see a flood of companies offering Google Apps configuration, maintenance and support services.

This is good for Google and good for people who are considering moving over to Google's leveraged platform as the reseller margin will allow vendors to differentiate themselves with value add services whilst still being able to make a reasonable profit. What this means for the more established players in the market remains to be seen. When any product or service becomes a commodity, established players move upmarket to focus on the strategic side of the market. The only bit of the market left that has a high margin business model!

Enterprise Architecture in Troubled Times

It will be very interesting to see how the next chapter in the global financial crisis pan out over the next few months. In bad times it makes sense to spend time and money on Enterprise Architecture as there is an inevitable increase the need for reduced cost, consolidation, standardisation and integration within enterprises. In reality however, Enterprise Architecture is often one of the first casualties as consultants are retrenched, staff numbers cut and the focus moves on to tactical cost cutting and cashflow generation. The pressure to reduce cost often results in naive cost reductions that don't really make sense in the long term.

We could learn a lot from Warren Buffet and his quote “Be brave when others are afraid and afraid when others are brave.”. Spending time and money on enterprise architecture in bad times is a bold and brave move but probably one that will create a market advantage in the short to medium term. An advantage that will create a real differentiator when those who were afraid eventually become brave again.