Cloud Ave: Rethinking IT Transformation for the Cloud

InsightaaS: Cloud Ave. is a site that examines cloud through both a technology and a business lens. In this post, Scott Bils, a partner at analyst firm Everest Group, and leader of the firm’s Next Generation IT practice, shares his perspective on why cloud has changed the ground rules for IT transformation, and what to expect in the future.

As cloud computing matures and success models emerge, enterprises are now getting serious about using cloud to drive IT transformation.  JP Morgan Chase, Toyota, GE and other leading organizations are moving beyond incremental costs savings and are using cloud and next generation platforms to drive innovation, growth and competitive advantage.  Unfortunately many CIOs and their advisors are attempting to take a traditional, legacy approach to cloud-enabled IT transformation that fails to account for new realities.

IT transformation is certainly not a new concept, having been around for at least the last decade or so. Though transformation efforts traditionally have been launched to improve IT / business alignment, they typically have served more as window dressing for IT cost cutting. Traditional approaches to IT transformation are characterized by multi-year programs generally based on a four-step approach…

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