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Embotics Cloud Management Blog

The IT Crossroads

During The IT Crossroadsthe past few decades perhaps no C-level position has undergone as many changes in expectations, approaches, and philosophies as that of the Chief Information Officer. The CIO is constantly challenged not only top keep abreast of an ever-changing landscape of technologies, but also to keep up with changes that affect the business as a whole. To keep up with fast moving competitors, CIOs need to ensure that their organization is increasingly agile and is able to rapidly deliver high quality, secure applications and services. But delivering in this way is not always in line with the annual budgeting process and can be especially conflicting with the fixed resources that IT has available. 

Frequently, when we talk to people in IT, they tell us they’re completely sidelined by groups and individuals in other departments who take matters into their own hands, with line of business managers pulling out a credit card to get services directly from a cloud service provider. This “shadow IT” or “stealth IT” can be done via self-service portals, often with very little commitment from the customer and with consumption-based contracts where they pay for what they use. But all too often, it’s possible for them to get a surprise bill at the end of the month that’s several times more than they planned for, and sooner or later, they ask for IT to take control of these rogue instances.

This trend has put IT at an important crossroads, changing themselves from an allocation model to a consumption model while also maintaining or improving the organizational governance standards. And to do this effectively, it therefore has to take on two roles.

First, they must transform into a cloud service provider (CSP) so that they can compete for new business internally within the organization. Providing a clear differentiation from the public providers, and finding ways to be competitively priced, and present a bill for services consumed, or at the very least using “showback” to drive the business to be accountable for the resources it consumes.

The second role that IT needs to embrace is that of a broker of cloud services, becoming a trusted advisor to the business by presenting options and helping them make the best choices for services regardless of whether they are delivered from IT or from a public cloud provider. This prevents shadow IT, and all the issues that come with it.

One of the ways that IT can ease its transformation to a cloud service provider is by embracing a cloud management platform. By providing a self-service portal to the users in the business units, where the underlying systems are created is abstracted from them, and the workloads being provisioned can be intelligently place the load on either the private or public cloud by the CMP.

Cloud management software can also provide the means of providing chargeback or showback so that the business has clear visibility into the cost of services and can therefore make informed decisions about where to source these services, and the real cost to the business.

To see how Embotics vCommander can help you make the transformation, check out the solution center.

Topics: Shadow IT Chargeback & Showback IT Transformation