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The cloud has created a strange division in some companies with some claiming, as you say, that it could possibly eliminate the IT dept and with IT dept's reacting dismissively to these claims. You correctly reject both of these ideas for a more level-headed and moderate approach. The IT dept is not going anywhere, cloud services may be the way forward but people will still be needed to manage servers. On the other hand for some to claim that the cloud will have no affect is also wrong, the cloud will likely have some affect on the nature IT dept's but how great remains to be seen.
Greater than 10 years at least, probably greater than 20 years.
Data keeps getting bigger, internet speeds have not kept up.
6 Votes
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NO!
mbaumli 11th Oct
While the cloud will eliminate some IT roles, it will effectively create others. Some smaller companies might be able to outsource their IT needs, while others might have to create a larger IT staff to manage their "Private Cloud"

This is basically the same argument that I have heard year after year about various roles in the IT industry. I wasn't around then, but when the Mainframes and Mini computers became less important and PCs became the entry point instead of Terminals, Mainframes were going to disappear and people who ran them were as well. They still exist, just are marginalized. But because of PCs, we saw the need for larger IT shops, not smaller ones. Every new management tool is supposed to eliminate the need for IT, but another role opens up elsewhere. Tablets and other devices open up a whole new world of headache and while the cloud eliminates some of the application troubleshooting, it creates entirely new vectors.

Also, having dealt with various cloud application vendors already, the shift in responsibility may sound all fine and dandy, but the reality is, larger vendors seem to create more problems and place less importance on smaller shops for getting business done. Cloud computing in my experience will be the same as outsourcing or off shoring. Especially since they are effectively the same thing. Instead of getting work done or yelling at the local IT staff, management or the appointed contact will spend their time yelling at the cloud provider asking why they can't seem to make their application work properly.

Cloud computing sounds awesome, it isn't. It has just as many IT problems as before, the problem is that it puts a space between IT and the people that need IT help.
Last two paragraphs sound like our experience.
needed to ensure the same basic tasks are organised and done as required - either that or a high level purchasing person has to learn about the same stuff and check it's done as they administer the contract. In short no manpower saving at all, showing the cloud costings are false as the advertising doesn't cover all that is currently done in house .
you have no information technology?

Erm, aaaah, let me think, erm NO

Sheesh
0 Votes
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and the cloud does not mean no control anyway.

How you exercise control will certainly change, but that wasn't my point.

You can't divorce information from the business, you need technology to get information from your data, therefore you need competent professionals to help you do that.

There are of course people trying to sell the fallacy that you can do it without them, but that's not new. There's always some fool you can part from his money,and there are always those who's ethics can stretch to that.

Neither worry me...
2 Votes
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Fad
Vorpaladin 11th Oct
The "cloud" is a fad that will die out after 2 or 3 major security breaches destroy or expose critical / sensitive data of large corporations.
1 Vote
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Fad?
Suresh Mukhi 11th Oct
" I have traveled the length and breadth of this country and talked with the best people, and I can assure you that data processing is a fad that wont last out the year. " - Editor of Prentice Hall business books, 1957

The Editor had turned down a manuscript discussing the science behind data processing and the above was his explanatory statement. The New York Times comments: Fads have a way of sticking around long after those who call them that are gone. [Source: The New York Times]

http://www.makeuseof.com/tag/8-spectacularly-wrong-predictions-computers-internet/
1 Vote
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Fad!
Snak 12th Oct
Like outsourcing, and then in-sourcing, then outsourcing, and then in-sourcing. I'm almost convinced that someone somewhere waits the three years it takes human memory to evaporate and re-introduces an old fad, re-branded as the 'next new thing'.....
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This is why anecdotal evidence is broadly considered unreliable. Simply pointing out that someone mis-called a fad in the 50's does not have any bearing on the validity of my statement. Lots of tech fads have come and gone (PointCast, Clippy, DigiScent iSmell, Flexplay DVDs, etc.). How about a quote from someone saying "I told you so, those really were fads!".

The point is that the idea of letting a 3rd party store your sensitive corporate data and not even having a local backup copy of that data (the definition of "cloud" storage) is FAIL from the outset. But it's the current "hot thing" so some corporate execs are turning off their brains and running with it because their lackeys have told them what a great idea it is.

So what's going to happen? Someone is going to lose their data. Some corporation will lose hundreds of terabytes of intellectual property. This is inevitable. Chances are it will be due to a malicious cracker, possibly an agent of one of the nations actively working every day to crack into systems with the intent of disrupting operations or stealing data. One of these cloud storage companies will have a vulnerability they don't know about, and because they are storing so much data for so many corporations they will be a prime target worth throwing cracking resources at in abundance.

AFTER this event takes place, "cloud" storage will be a dead concept. It is simply too risky to entrust your critical data to a 3rd party, period.

As for "cloud" services, this is simply a rebranding of SOA; it's not anything new. Calling it "cloud" is a fad -- the name will be changed every few years to keep people thinking that something novel and groundbreaking has been created, when in fact it is nothing more than a small incremental improvement of what existed before. An exciting new name makes it easier to trick people into paying a premium for it.
17 Votes
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Top Rated
We Decided To Pass
Thumper1 11th Oct Top Rated
Unknown to me, the lawyers who manage the firm that I am the IT guy for studied the cloud and decided that the risks were not worth the savings. This may and probably will change in the future but for now, we are going to pass on the cloud.
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The law firm I work for has hired a consultant to study the cloud as a solution as well. (Evidently, they thought I was too close to the subject to be objective). They did choose to let me know that they were doing it, and in fact the consultant has picked my brain as to the firm requirements.

I am fairly certain the answer will come back the same as your firms did. "We decide to pass" Especially, since the consultant told me he didn't see this removing my role, but rather expanding it.

I think they are looking at it because they have put off upgrading hardware for several years and they now face the need to spend a lot of money in a short time.
3 Votes
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is one of the main questions when talking about cloud. Of course, you sign confidentiality agreements and all, but fact is your data is accessible by somebody outside your company. That's just an extra risk the lawyers especially dislike.
3 Votes
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"The same goes for managing users and passwords: the responsibility is entirely on the hands of the user. If all your accounts are configured with default or weak passwords, youre running a real risk of someone invading them and stealing sensitive data."

This comment is even more true that ever in a cloud environment. You might be able to get away with an internally hosted application with default or weak passwords if you have your perimiter properly guarded. (Although it is NOT something I would EVER recommend...) You CANNOT get away with this on a cloud hosted app - you WILL be hacked.
-12 Votes
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Why would I need an IT department?
doug@... 11th Oct - Below your threshold / Read Anyway
Let's say I'm setting up my new business and need computer automation.

Well, first I get on Google Apps and set up a domain. Takes about an hour and I have email and office apps.

Then I call up a software vendor specializing in my business niche. They load an image with their software installed on aws.

Done. Where's the IT department?
Not a one man shop, or even a five man shop.

Try a seventy person office with a need to integrate, Phone, eMail, File, Print, CRM (Customer Relationship Management), Accounting, Payroll, three locations, not to mention Document Management, Document Retention, make sure you comply with HIPPA, SarbanesOxley Act, maintain a known good and working backup strategy, maintain networking infrastructure... the list goes on.

If you choose to use Google, there are many potential pitfalls and even possible legal issues, especially if you have to worry about HIPPA or SarbanesOxley. Oh, and have you ever actually tried to get support from Google?

Now tell me you don't need an IT Professional.
like privacy information (names and addresses) and you don't mind risking not having any of it accessible due to Internet access failures.
because all your customer information needs to remain confidential.
4 Votes
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Moderator
Okay
NickNielsen Updated - 11th Oct
Now, one morning you come in to work and find you and your employees can't access either Google Apps or AWS; in fact, you can't even get to the internet. You call your ISP and they say the cable or DSL modem is on line and responsive. In short, the problem is at your business and not at theirs.

Where's the IT department?
it's your business has been effectively shutdown. That's another big issue with "the cloud". No connectivity, no cloud.
1 Vote
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trust
Al_nyc 11th Oct
Would you trust the cloud with your business?
We took our CRM/ERP to the cloud. It was oversold on capabilities. We wanted an integrated system so we didn't have to maintain and integrate 4 separate systems. Now we have our primary vendor, and two sub-vendors to manage so we can keep up our current pace of business (wholesale sales and distrubtion).

Right after implementation we had to add employees, not reduce them. Our bottom line hasn't improved, nor have sales increased after 10 months.

In the "old" days, our IT staff could customized our applications as soon as we could get to it. Now we have to wait on third-party software vendors to make changes.

And without direct access to our data, we are actually at a disadvantage over having our data in house, even though it took more manhours to manage.

I've tried it and wish again for the days of in-house hosting and development.
The cloud absolutely threatens IT. Not because IT isn't needed, but because cloud vendors are telling decision makers that IT isn't needed. I would like to believe that decision makers would be rational but they have proven otherwise over time. That includes upper IT management who tend to be more management than IT. I had a CIO that saw the cloud as an opportunity to eliminate all system administrators over time because the cloud vendor would handle all of that.

Bottom line is that the risk is there because decision makers will not always make rational decisions. IT needs to provide a rational and calm analysis of the pros and cons of cloud computing and make sure they continue to educate upper management on the risks and rewards of cloud computing.

I'm not against cloud computing. There is a lot of potential value to be achieved from it. We just need to be wary of the pitch that they make to the non-IT people about the improved ROI by reducing IT staffing. That's a very real risk that IT departments face even though we know there are significant risks associated with the elimination of onsite IT staff. IT just needs to be willing to work with management and transform itself as needed to make it through the transition to more cloud-based IT services.
6 Votes
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Exactly...
info@... Updated - 11th Oct
Because everyone knows that management NEVER listen to the false claims made by vendor salespeople, right? They never put their faith blindly in them. Ever. Management also ALWAYS asks the opinion of those affected as well, in this case the IT department, because they NEVER assume those people will answer based solely on the basis of saving their own jobs. Nope.

What you'll get is a LOT of layoffs... Then those same companies will try to save face when things go wrong by hiring outside companies to manage their outsourced infrastructure... They'll then eventually re-hire internal people, but they won't be the people that were let go.

So here's hoping most of those find greener pastures in the interim!
0 Votes
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But once the spaghetti starts to ravel, while the ball of twine unravels, it gets harder and harder to put it back together again... Humpty Dumpty knew that, but I think the King and his men were more interested in the free omelet breakfast...
0 Votes
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Either which way, it will be interesting to see what happens.

Especially if company management are correct in saying how the future poses more job opportunities (despite their lack of specifics, which always reassures people that not being reassured is the apparently correct emotional response...)
3 Votes
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reality
paul@... 11th Oct
Forget about business needs.No one wants their porn stash / mp3 / film collection to be administered in Mumbai , Ulan Bator, or Wales.
1 Vote
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The IT department isn't done, but a lot of jobs will be. With technology becoming more self-evident, the cloud and the proliferation of mobile assets, most front line jobs and many backend ones will go away. Cloud providers don't need the level of personnel to run their infrastructure that most IT departments do. The end result will be fewer back-end jobs and desktop support. I think developers and programmers will be immune to this as well as PMs. Of course this will take time, but in 10 years you won't recognize the place as they say.
0 Votes
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Agreed
HypnoToad72 12th Oct
Developers, DBAs, and programmers are in a comparatively good position.

Desktop support = gone or heavily reduced in 5.

Service Desk/Call Center = gone, as the claim in every symposium I've gone to claims the users will have more knowledge and ability to do the support work. Um, good luck on that belief... meanwhile, the symposium they're hosting tomorrow is also talking about how procreating unicorns are the reason why rainbows get made...
0 Votes
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Chuckle
sslevine 16th Oct
You ARE a funny guy! Thx, I needed a good chuckle about the "Over the Rainbow" approach -
The cloud IS the IT department!

Smaller companies (very small) may choose to band together to co-locate their applicatons, security, data on trusted Tier one vendor facilities which are located in a geo-political stable country and not opt for the ISP hosted cloud which typically hosts anywhere.

Of course, the cost of maintaining the status-quo vs cloud hosting will always come into play when making those tough decisions whether to trust another company with your data.

Some companies have reversed their decision host on the cloud primarily because of cost and security. All services provided by their previous IT department were built into the cost of the department whereas when you host in the cloud, every single option is a cost to the business.

The old addage is buyer beware. WIth the cloud no matter what people say, you must be well informed before you make that decision. This is where your current IT department may be of assistance in order to make those decisions.
15 years ago this same article was posted but the tag line was, "Will outsourcing be the end of the IT department?"
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I Agree with this. More and more businesses need their internal IT staff to manage their increasingly complex IT infrastructure. Also look at all these security concerns centered around the Cloud!. And look at the critical topic relating to backups. There is no guarantee that these cloud providers will provide any such service. We should leave "well" alone and let us IT professionals do our work and you the owners continue to make money for your business. We do our jobs well even if most times you do not say thank you but we love what we do and we keep your systems running all year long.
The cloud brings certain benefits and risks. Applications deployed by a competent IT department will be less risky than a cloud implementation, with better integration, better support, better migration path, and comparable cost. If only all IT departments were competent. This leads to the flip side of the coin; certain situations where the cloud compares favorably to the "preventers of information services".

The things that IT departments can do to outperform the cloud are the same things they need to do for long-term survival. With any luck, the cloud will let the business process of evolution kill off the weakest IT departments.
We can all piss and moan, but its happening already. I am a first hand witness of the glazed over eyes of my own IT director saying... "we don't need to worry about backups.. they got us covered" , "can you imagine no more hardware and its only $$/month", and "we don't need A/V on our servers in the cloud"...

Neo, which is it going to be? The RED pill or the BLUE pill ?
2 Votes
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The Cloud
zach3@... 11th Oct
At present I don't see the Cloud as a trustworthy solution to anything. I don't trust it from a security basis and would never use it in any foreseeable future without a complete backup.
3 Votes
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The cloud people say "We can do it all, we do the storage, the backups, and all will be safe, secure, and inexpensive. Nothing can go wrong!"

The Suits hear this, and say - WOW, we can get rid of a lot of people by going to the cloud. We can get rid of those weird IT guys. The money we've saved will help to pad my bonus! What could go wrong?"

The bean counters see this, and say "Wonderful! Not only will this save money, but we'll be able to grow our department by hiring accountants to keep track of our presence in the cloud. We have the spreadsheets to prove nothing will go wrong!"

Asking that question only show ignorance of what will go wrong. People are looking at computing from their narrow blinder driven focus. The Cloud people want to make money of course. The Suits want to get rid of people and increase their take, and the bean counters want to count beans and grow their departments.

Somewhere in the perfect world of the cloud, the idea of computing is lost. The cloud concept won't go away until it comes crashing down around us like the bubble that it is.
in the last few years and taking nearly all the client data into oblivion with them.
To catch your attention, that's why ...

The title of this article should have been "Ways that the cloud is likely to change the nature of the IT department and the roles that it serves" not the takeaway ...

Besides, ur making the assumption that "a virtual server with the same specifications from a public cloud provider" costs the same or less to manage than a physical server minus the maintenance crew.

Don't cloud servers need maintenance? Are cloud vendors going to absorb this cost for you?

I don't think so ..


if you hire , you dont need anyone, and whatever you were going to pay that person becomes cost savings. This naturally leads us to the following question: Will cloud computing be the end of the conventional IT department?
Based on history of IE, before release of any IE Microsoft says that it is stabe and scured, but couple of weeks it will be attacked by so many, so how the Cloud is safe?. How MicroSoft IE is safe and reliable..
Think before commenting anything...
Not to mention most browser security is about securing yourself from those who provide the service....
What really threatens IT is a combination of Google and Apple.

Goggle provides all of the core enterprise services in a cheap, reliable and easy to administer manner. Going Apple on the desktop relives the burdens of Windows administration, and the Apple store/genius bar relieves the issues of equipment failure diagnoses and replacement.

I have successfully run small development companies (up to about a dozen employees) with no IT person at all. What little admin was necessary i could do as CTO. When we needed to test under windows/IE we simply ran a virtual Windows session on the Imac.

But if you rely on windows as your primary business environment, then you need a full time babysitter to keep it functioning.
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