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Planning Cloud ROI and Transformation – VMware special, part 4

vmware2This post  is sponsored by the VMware Online Forum 2013.

This is the fourth and final part of our executive series on Cloud-enabled Business Transformation via VMware technologies.

cioTo conclude the series we’ll focus on the overall transformation framework: When IT teams and business executives get together, how can they plan and execute a Cloud computing strategy from the ground up?

IT Value Transformation

The headline resource from VMware to answer this question is this study commissioned from the IT Process Institute, their white paper: ‘IT Value Transformation Roadmap‘ (24 page PDF).

In this document they offer a blueprint for a Cloud Maturity Model, a ladder of maturing capability that you can compare your organization to, and use as a framework to plan your own business transformations, where:

“This cloud computing strategy brief presents a virtualization- and private-cloud-centric model for IT value transformation. It combines key findings from several primary research studies into a three-stage transformation road map.”

In short this is an ideal strategy blueprint for any existing VMware customers – It proposes a 3-Step maturity model that begins with virtualization and grows into full utilization of Cloud computing across three stages of:

  1. IT Production - Focus on delivering the basics and proving value for money.
  2. Business Production - Utilize technology to better optimize business processes.
  3. ITaaS - Fully embrace utility IT as a Service, and leverage technology for enabling new service innovation.

This corresponds with an increasing maturity in the use of virtualizastion, SaaS and other Cloud architecture principles and external services, that begins with where most customers are now, mostly half way through phase 1.

Becoming a Transformational Leader – Start your journey

It also corresponds with a journey for the CIO as well – From operational manager of a cost centre with poor value for money perceptions, through to a boardroom-level change agent who is directly driving new profit-making initiatives.

Specifically the paper makes the point that this evolution results in the CIO being recognized for delivering strategic IT value:

What is strategic IT value? Strategic IT value is demonstrated when IT plays a key role in a company’s achievement of overall business strategy. In other words, when IT is keenly focused on business outcomes and plays a significant role in optimizing and improving core value-chain processes. Or, when the IT organization drives innovation that enables new technology-enabled product and service revenue streams. When IT is effective, results can be measured by improved customer satisfaction and market share gains.

In contrast many CIOs can find themselves in somewhat of an operational corner – Responsible for keeping the lights on but perceived as a poor value-for-money cost base for doing so.

The IT Process Institute describe how CIOs can break this constraint cycle and shift from a cost focus to delivering strategic value for the business, through this three-step progression.

Our series of articles also mirrors this same progression:

  • Outsource IT operations – Cloud providers like Rackforce in Canada are increasingly broadening their service offering to become more of a managed service provider, able to help customers shed low value operational IT via outsourcing. 

The IT Process Institute also offers an Online Assessment – This tests your organization against this three-tier scale. You can determine your current position on the Cloud Roadmap and then engage with experts to plan the additional steps to advance your maturity towards these strategic goals.

vmware2

Then attend the VMware Online Forum 2013 to learn more…

The post Planning Cloud ROI and Transformation – VMware special, part 4 appeared first on Cloud Computing Best Practices.

Read the original blog entry...

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