Canadian companies move to the clouds

Just two years ago, Canada was one of the slowest adopters of cloud computing. But now it is one of the top three globally, according to a new survey from Avanade.

By Dean Olmstead

*This is an expanded version of a summary that was originally published in the September 2011 issue of CAmagazine.

The economic climate over the past few years had a significant impact on corporate IT operations. Being resourceful with already stretched budgets became a standard practice among investors, executive leaders and even customers. This “do more with less” attitude spurred consolidation, outsourced business processes, and an accelerated investment in technologies that shifted costs from large capital expenditures to smaller operational expenses – including infrastructure, platforms, and applications delivered in the form of services.

Today, two years later, IT spending is on the rise according to Gartner and other analyst firms. In a recent global survey commissioned by Avanade, 51%of Canadian companies reported their IT budgets will grow. For the first time in several years, companies are able to shift from a “do more with less” to a “do more with more” IT operation. Companies are adopting new technologies to deliver services and, in some cases, to cut ongoing costs with more efficient IT operations.

Cloud computing as a maturing technology
Now in 2011, we are among the top three adopters of cloud computing, according to the survey.It is evident that companies are demanding that IT be cost effective and flexible, which means greater pressure toward adoption and investing in cloud solutions that will improve efficiency and save money.

Companies are looking increasingly to the cloud to help their workers share information, streamline operations and better understand customers. However, with this cloud maturation, there are also increasing concerns over cloud sprawl – the unmanaged adoption of cloud computing in the enterprise.

Cloud growing pains
Today, many executives report it is impossible to manage all the disparate cloud services within their organization. Purchasing a cloud service without the IT department’s knowledge is not uncommon and respondents say there are no real deterrents. In fact, 29% report there are no ramifications while another 46% say it is little more than a warning.

Why are some people purchasing cloud services without IT involvement? The majority of respondents say it is easier to provision cloud services themselves, while some say it takes too long to go through their IT department. A smaller number reports their company’s cloud policy actually prohibits the cloud services they want to use.

How to manage cloud sprawl
Today, the reality is, just about anyone can purchase a public cloud service via credit card. And often, employees aren't taking necessary steps to ensure data security.

As a result, cloud sprawl highly probable if left unmonitored and can result in disparate company and customer data. So what steps should companies take to get on the right path to cloud governance and managing cloud sprawl?

Define and communicate a clear, user-centric cloud strategy. Managing cloud sprawl requires real cooperation and dialogue between IT and business. An overarching cloud strategy should be defined with all key stakeholders in mind and mapped to business objectives. The strategy must accommodate users’ needs as well as possible, and be jointly communicated from both IT and business leaders to the entire organization.
Conduct a cloud audit. During this discovery phase, IT should collect and survey where cloud is being used in the enterprise and identify potential governance gaps.

Real-world test cases can help identify gaps – interviews with power users can reveal usage scenarios that fall outside mainstream policies. IT and users should partner to identify a resolution that meets the needs of the user while ensuring the security of the company’s data.

Create a migration roadmap. Next, business and IT should work together to create a clear roadmap to migrate current cloud deployments to the company’s cloud strategy. They should also determine which, if any, cloud services should be shut off, and ensure all deployments meet business objectives.
Communicate strategy and positives. Today, most companies (71%) post their cloud policies online. This is simply not enough. To be effective, enterprise cloud strategies and policies must be clear, concise, and regularly communicated throughout the organization.

Companies should also focus on the positives. It is important to regularly reinforce both the company’s cloud strategy and policies by communicating concrete business benefits delivered by cloud services. This includes one-on-one and frequent conversations between IT and employees.

Enforce and refine. Companies should have ongoing dialogue with users to teach them about the risks of using rogue cloud services. From time to time, IT will need to take measures to stop the use of these rogue services. Companies should also revisit their cloud strategies often and adjust based on user and business needs.

By following these steps, IT departments can remain flexible and responsive to customer demands, ensuring the company’s competitive edge. IT professionals should start with a clear plan, sound analysis and proven methodologies and practices. This puts companies on the right path to managing cloud sprawl and ensuring the security of their valuable data.

2011 global research
In March 2011, Avanade commissioned a survey of 573 C-level executives, business unit leaders, and IT decision-makers in 18 countries to learn how technology, particularly cloud computing, is being used in the enterprise. Download the full report.

Dean Olmstead is senior vice president of Avenade, Canada