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SPECIAL REPORT

Cloud Computing

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The Why of Cloud

The cloud will change IT as nothing before it has. It may end up removing the last vestiges of the captive IT organization that "owns" its enterprise as surely as the enterprise owns IT. CIOs are right to start addressing it now. They can't afford to be caught unaware by it, no matter how and when they choose to incorporate the cloud into the enterprise.

Is Cloud Computing One of Your Key Initiatives? More on this Key Initiative  

Key Initiatives organize Gartner's vast resources to help you achieve demonstrable business results efficiently and cost effectively.

Cloud is a style of computing where scalable and elastic IT-related capabilities are provided as a service to customers using Internet technologies. Intense hype surrounds cloud computing, making it difficult to understand vendor options and strategies.

We recommend IT leaders follow these five phases when investigating this initiative:

Build the business case

Link the Key Initiative to the overall drivers or objectives of the business. Gain support from senior business leaders and senior stakeholders. Set a baseline for assessing the impact of the investigation. Estimate costs and resource requirements.

Develop the strategy

Align the investigation with the business strategy, and show how it can deliver business value. Show how the investigation might lead to changes that will affect your business environment. Work with key stakeholders to identify business needs.

Assess readiness

Identify the budgetary, staffing, technology and other requirements necessary to prepare the business for the investigation. Develop a total cost of ownership analysis framework. Review established policies for assessing risk and managing governance.

Pilot or prototype

Identify a group to pilot, or develop a prototype for the investigation. Develop and communicate detailed requirements. Manage the pilot/prototype. Assess and communicate the results.

Gain approval

Analyze findings of the readiness assessment and pilot or prototype effort, and revise the strategy and business case accordingly. Present findings of the investigation to senior stakeholders and business leaders.