Cloud on Desktop

Cloud computing means more than simply saving on IT implementation costs. Cloud offers enormous opportunity for new innovation, and even disruption of entire industries.

Voices from the cloud: Apple's Siri uses cloud to do its thing. 

There’s no question that most businesses have been trying out cloud computing in one form or another in recent times.  A new reportfrom The Economist Intelligence Unit and IBM finds that among 572 business leaders surveyed, almost three-fourths indicate their companies have piloted, adopted or substantially implemented cloud in their organizations – and 90% expect to have done so in three years. And the number of respondents whose companies have “substantially implemented” cloud is expected to grow from 13% today to 41% in three years.

However, most companies have not yet recognized cloud’s full potential. “Although cloud is widely recognized as a technology game changer, its potential for driving business innovation remains virtually untapped,” the report observes. “Interestingly, while our research clearly reveals organizations intend to rely on cloud to enhance their business capabilities, only 38% cite cloud as a leading priority for the entire company. Rather, cloud is still viewed by many as an IT solution, with 62% citing cloud as a leading priority for their IT organizations.”

The potential of cloud computing extends far beyond the walls of the IT department, report’s authors, Dr. Saul Berman, Lynn Kesterson-Townes, Anthony Marshall, and Dr. Rohini Srivathsa, all with IBM, suggest. “Our survey results suggest that organizations are just beginning to understand the power of cloud to help drive business innovation. Only 16% of survey respondents currently utilize cloud for sweeping innovation, such as entering new lines of business or industries, reshaping an existing industry or transitioning into a new role in their industry value chain.”

Interestingly, the authors recommend that companies evaluate whether their cloud strategies should involve becoming a cloud service consumer or a provider of cloud-based offerings – or include elements of both. Cloud platforms make it viable for organizations to play both roles, blurring the lines between consumers and providers, IT and non-IT companies — and this may be the most disruptive element of all.

The Economist-IBM report provides some shining examples of companies that are employing cloud computing to not only cut IT costs, but also play a role in disruptive innovation: