In a rapid quitter exchange with some esteemed influencers today, it struck me that agility was used as an argument for cloud applications in comparison to on premise enterprise applications.
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And indeed - business agility is quite often used in conjunction, with cloud, indeed so often that a search on both terms leads to over 400000 results on Google:
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So what does agility really mean? A look at Merriam Webster:
Let's go for the above definition labelled as 1 - the ability to move with quick easy grace.
Obviously that depends on the perspective, so let's dissect this a little more below
So it's very clear the more modern system will usually win achieve this, and as cloud applications are more recent and more modern, the end user will be more agile using a cloud application.
Short term the business unit will be more agile, the question is, how will that be after a few quarters, as the opex budget is more limited and the automated processes depend solely on the cloud vendors capabilities.
The story is different, when the IT team is the instigator on moving applications to the cloud, as the expectation should be, that they have done their homework before. By moving applications to the cloud, the net effect on IT resources should be positive in a way, that less resources need to go to application maintenance and support. In that case the IT team increases agility by moving applications to the cloud.
And indeed - business agility is quite often used in conjunction, with cloud, indeed so often that a search on both terms leads to over 400000 results on Google:
So what does agility really mean? A look at Merriam Webster:
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| Courtesy of Merriam Webster, from here |
Let's go for the above definition labelled as 1 - the ability to move with quick easy grace.
Obviously that depends on the perspective, so let's dissect this a little more below
For the end user
An end user does not really care how an enterprise application is delivered to him, on premise or via the cloud. What matters to the end user, is an intuitive user interface and that things can get done, meaning the system is available when needed, it's not too complex to use and leaves time for the real day job.So it's very clear the more modern system will usually win achieve this, and as cloud applications are more recent and more modern, the end user will be more agile using a cloud application.
For the business unit
Business units are often frustrated with the support they get from central functions, in this case IT. The applications are too rigid, do not support the business unit well, are cumbersome to use, standards are restrictive, procurement is a pain etc. By selecting a cloud application and running it for the business unit, the business unit can become more agile, as it will be easier to get things done. And they can pay for it out of their opex budget. But most enterprise applications aren't operating in information and process isolation, so usually the business unit will have to go back to the not so popular IT department for the plumbing work that is there in the aftermath of a business unit based decision to use a cloud application.Short term the business unit will be more agile, the question is, how will that be after a few quarters, as the opex budget is more limited and the automated processes depend solely on the cloud vendors capabilities.
For the IT team
When IT teams are surprised by their business units uptake of cloud applications, it's never a pleasant surprise. Suddenly interfaces, APIs, user information, credentials etc need to be shared that weren't required before. This goes along with a loss in agility, the life of the IT team does not get easier.Unless there are applications that can be de-comissioned and turned off as part of the business unit's cloud decision. But I have seen that seldom be the case.The story is different, when the IT team is the instigator on moving applications to the cloud, as the expectation should be, that they have done their homework before. By moving applications to the cloud, the net effect on IT resources should be positive in a way, that less resources need to go to application maintenance and support. In that case the IT team increases agility by moving applications to the cloud.
For the whole enterprise
When applications are moved to the cloud, the effect on the enterprise's agility is not so easily determined. Let's look at some scenario, when the enterprise will not benefit from moving to the cloud:- The cost of interfaces and security required by the cloud move, is not offset by the benefits.
- Though the cloud applications does not require capex, the total opex payments over e.g. a 5 year time frame exceed the cost of an on premise application.
- The enterprise cannot customize / modify the cloud application in a strategic aspect to make its enterprise run smoother.
- The enterprise looses differentiation in the market place, as many of its competitors use the same cloud vendor and have the same available functionality at their disposal. IT becomes a cost factor and is no longer an investment.
- Regular updates by the cloud vendor do not create value for the enterprise, but prove to be a distraction to users and IT who need to be re-trained and the application needs to be re-configured and validated.
If the above 5 scenarios - and I am sure there are more - can be successfully avoided, then the enterprise will gain overall agility, by enabling its users to use a most likely more modern enterprise software, reducing capital spend in the long run and benefiting from regular updates, that keep the enterprise system in tune with best practices.
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| Taken from http://www.agilityrightfromthestart.com/ |
MyPOV
The move to the cloud is often portrayed as a no brainer for enterprises and improved agility is one of the most used benefits associated with the move. But except for the end user - and also for them only under the parameters of still getting things done - the equation for enterprises is not so clean cut. The restrictions for business units, the IT team and the overall enterprise are more extensive and need to be managed well, to make the move to the cloud a gain in agility and a success for an enterprise. Which is the objective at hand.