SAP SPECTRUM: Experts say that the cloud represents a new chapter in how enterprises can better use IT. Why do they believe that?
Mark White: There are three broad answers to the question. Number one: they want economic advantage. In fact, you might say they have a preference for operating expense over capital expense or they have a preference against a large upfront payment, which cloud, particularly public cloud, offers.
The second answer is speed to solution or scale of solution. The head of HR might say I need the resumé screening site up next week, not three months from now. Doing that with the internal IT team can take weeks or months. But in the cloud, it only takes hours or maybe days. The third answer is efficiency of resource. Let’s use an SME example. SMEs are the most aggressive and complete adopters of public cloud services today because in the cloud they have access to solutions at a level of sophistication or capability that they can’t afford to implement internally.
William Briggs: Those are examples of faster and cheaper. The third part of this impossible triangle is better. Better, cheaper, faster. What cloud allows is a democratization of services – and so the small provider now can reach a much larger marketplace. Taking this one step further: three small providers could collaborate and go to the market as a single large provider. So our motto here is that cloud is technology evolution.
Free download: Read the complete article in SAP SPECTRUM Issue 1 | 2011.