Who wants to wait two weeks for 10 signatures when they need IT equipment now or have a great idea for a business service? No one -- and that's why business units are moving past their IT department to cloud computing services, causing CIOs consternation. The solution to this problem is another C word: change.
"There's no doubt that IT will see incredible change with the cloud," said Mike Grandinetti, managing director of Southboro Capital LLC in Sudbury, Mass., who frequently moderates cloud events. "I think the IT department shrinks. People that were server-huggers before have a lot fewer servers now." As a five-time entrepreneur, Grandinetti knows that certain people thrive on change. In the IT space, the ones who thrive will become better service providers.
Getting to that level of letting go "requires a cultural change that does not happen very easily -- and is much harder for professionals than for end users," Vouk said. "The resistance that we have encountered over and over again is trying to convince people that IT jobs are not going away, but that they're going to be more productive in providing services than lugging computers around."
A change in IT skills
At the MIT symposium, talk centered on the soft skills -- communication and trust -- needed for this organizational transformation. "It's a people issue," said Trae Chancellor, vice president of enterprise strategy at Salesforce.com Inc., based in San Francisco. "It's making people aware that they have opportunities. [The cloud] is an enabling technology for IT."
Sanjay Mirchandani, CIO of EMC Corp. in Hopkinton, Mass., who, along with Chancellor, spoke on the MIT symposium's cloud computing services panel, said EMC is opening up a raft of new job titles to support cloud efforts: application architect, security architect and process engineers, to name a few. "You've got to make people in IT understand there is tremendous opportunity," he concurred.
Inevitably, however, there will be shrinkage, according to Jeff Kaplan, managing director of Thinkstrategies Inc., a consultancy in Wellesley, Mass. "IT grew because of the complexities," he said. "With fewer complexities, there is less demand" for traditional IT skills. However, there will be need for new skills in terms of evaluating and using cloud technologies and services, different kinds of software development, and business analysis and vendor management, he said.
For one company on the MIT symposium's cloud computing services panel, the change in IT didn't happen amid a tide of fear, but in a stampede to become part of the excitement. "We have 11,000 developers, technologists and scientists, and their embracing of the cloud was tremendous," said Michael Kirwan, CIO of Yahoo in Sunnyvale, Calif. "We had to put a process in place because everyone wanted to jump on day one, and it was necessary to tamp down some enthusiasm as opposed to an uncontrolled migration."
Managing clouds of IT change
Panelists at both the MIT CIO Symposium and the State of the Cloud conference had specific advice for IT executives managing the change that comes with cloud computing:
- It's important to be engaged with the business teams so you're not surprised by their provision of cloud services, said James McGlennon, senior vice president and CIO of Liberty Mutual Group, an insurance provider based in Dover, N.H. "I don't have a problem with them using whatever it is. We have cloud services; it's the next evolution of things that have been there forever."
- The cloud demonstrates "what an important part communication is to the CIO job," said Anne Margulies, CIO of the Commonwealth of Massachusetts. "Communication is essential at all levels, including the vendor community" so they don't bypass the CIO and sell directly to business units. "Communicate with users and executives," she advised. "It's a relationship-based job."
- "In some cases, we let people fail," said North Carolina State's Vouk. "People did their own clouds, set up VMware and discovered there was nothing to manage it. Then they came back and said, 'I'm sorry.'"
Let us know what you think about the story; email Laura Smith, Features Writer.