Introduction

Many of the great things in the history of our civilization have been achieved by the independent will of a determined soul. But the greatest opportunities and boundless accomplishments of the Knowledge Worker Age are reserved for those who master the art of “we.”

Stephen R. Covey, from the foreword of the 2004 edition of The 7 Habits of Highly Effective People

About three years ago, I began writing about the convergence of three major technology trends that I believed would radically transform the role of the modern CIO.

The trends were cloud, mobile, and social computing—in that order.

Today, I would add advanced business analytics to the mix of converging trends. And I might subtract the cloud.

Why remove the cloud? Well, I don't think it's fair to call the cloud a trend any more. The word “trend” suggests a kind of impermanence. Despite its vaporous name, cloud computing has solid foundations. It is no longer mostly hype or fiction. The cloud is real. It is a fact of life.

Gartner, the world's leading information technology (IT) research and advisory company, wrote in 2011 that “almost half of all CIOs expect to operate the majority of their applications and infrastructures via cloud technologies.”

If we accept that cloud computing is here to stay, then it makes sense to get a firm grasp on what the cloud is and what it isn't.

“Almost half of all CIOs expect to operate the majority of their applications and infrastructures via cloud technologies.”

What it isn't is the end of IT. Why? Because the cloud is just another form of IT. As you know, IT technology tends to be additive. For example, when companies began using client-server technology, mainframes didn't suddenly vanish. The same thing happened when companies started buying PCs—they didn't throw away their client-server platforms. Some processes run better in mainframe environments, some processes run better in client-server environments, and some processes run better in desktop environments.

Part of the CIO's role is helping people figure out which technologies and which platforms do the best job of delivering the results that people need to achieve their business objectives.

Clearly, there are some parts of your IT portfolio that you will probably never put into the cloud. And there are some parts of your IT portfolio that you will happily send into the cloud.

So the big question isn't: Will you or won't you use the cloud? The big question is: What will you use the cloud for?

A New Business Model

Many of my friends and colleagues have expressed sincere skepticism over the cloud. Typically, they say the following:

“The cloud is not new technology.”

“Most of the cloud is hype.”

“The cloud will never provide the security we need.”

To be fair, most of what they say is true—to a certain extent. Two foundational elements of the cloud—virtualization and networks—have been around for many years. So it's fair to say that a large chunk of cloud technology is not new.

I'm not really in a position to judge whether the cloud will live up to the hype surrounding it. Only time will tell. In today's media-rich culture, all new things are accompanied by irritating amounts of hype, and the cloud is no different. Suffice it to say that some of the hype is legitimate and some of it isn't.

Concern about the security of data in the cloud is mostly valid, but it assumes that the cloud in question is the public cloud and not a private cloud. We'll talk more about the differences among public, private, hybrid, and community clouds later on. For the moment, let's agree on two points. First, security is a relevant issue. Second, the type of cloud matters because some types offer more security than others. So making blanket statements about cloud security is like saying “I don't like laptops because of the security issues they pose.”

Despite the uncertainty around the cloud, I am sure of one thing: The reason for learning about the cloud isn't because it represents a phenomenal new technology. The reason for learning about the cloud is because it represents a phenomenal new business model.

My instinct tells me that a lot of business leaders have already figured this out. And there lies the danger for the CIO: If you don't get on top of the cloud, the business will go around you and develop its own cloud strategy.

It's happened before, and it can happen again. Personally, I would prefer to see CIOs leading the charge.

“Thoughtfully Progressive”

My friend John Hill is not a wide-eyed optimist. He's smart, thorough, and rational. He is a former chief technology officer at Siemens, the global electronics and electrical engineering powerhouse.

“Most of us are inherently conservative and resistant to change. So we need to make a conscious effort to test the cloud, try it out, and find out where the benefits really are.”

When I asked him to describe the best way for CIOs to approach the cloud, he paused for a moment before saying, “Thoughtfully progressive.”

Not surprisingly, John's take on the cloud is . . . thoughtful and progressive. Here's what he told me:

The cloud is similar to other parts of the IT landscape. The real issue isn't the availability of the technology. The real issue is the availability of skills and knowledge. For CIOs, that means doing pilot programs and allocating resources to evaluate the practical benefits of the cloud.

Most of us are inherently conservative and resistant to change. So we need to make a conscious effort to test the cloud, try it out, and find out where the benefits really are. Now isn't the time to bet the farm; now is the time to build skills and knowledge.

We'll hear more from John in subsequent chapters. He is one of many CIOs who generously shared their thoughts, insight, and wisdom with me as I wrote On Top of the Cloud. Essentially, this book is a collection of stories about smart, talented, and experienced CIOs who are trying to figure out the best ways to take advantage of the cloud and make it work for their organizations. I invite you to read their stories and learn from their experiences.