April - 2014 - issue > CIO Insights

The Industry Demands Quick Upgrade into Cloud

Andy Nallappan
VP & CIO-Global Information Technology, Avago Technologies
Tuesday, April 1, 2014
Andy Nallappan
Avago Technologies (NASDAQ: AVGO), based in San Jose, CA, is a global leader in analog semiconductor devices sector. The company, founded in the 1960s, has a market cap of $15.60 billion.

The industry is witnessing many trends, with the cloud being the most significant. Yet, these trends cannot be termed as entirely new, as they have been in existence for a while. The present scenario has a preference for pay-per-use models, as compared to software in traditional model. Other trends include Google Mails, Microsoft Bizspark, AWS and CRM. These trends, more than technology, are towards fixing a vital issue; the fixed cost. In circumstances, where changes in business conditions fail to alter the cost, there is no price- flexibility, this is a biggest challenge in the current IT sector. The inflexibility with respect to cost has forced known IT capabilities such as HR Applications, Infrastructure and Collaboration to get software out of the door. There is the prominent requirement for a flexible scenario with low costs and ability to quickly grow and shrink. There are few other notable trends like social computing, analytics, big data and mobile. The cloud stands out with increased applicability in different sectors. I would say that the most recent trend, more than cloud, is all about how quickly you upgrade to cloud and adapt the technology and how much risk you take. We have our e-mails and document management upgraded to cloud, and we will soon upgrade CRM as well.
The Cloud has to be properly integrated and flexible
The one concern I find regarding several cloud vendors is the inability to provide true and flexible cloud. The industry calls for vendors, able to provide true pay-per-use models, instead of those who merely give assurance. In terms of flexibility, the duration of the tender is an issue. Today, many cloud vendors asks for three year tenure with the client. It is better than the traditional models, which demanded life-time collaboration. Presently, there are no life-time tenders, yet three years remain a pretty long duration, especially considering the preference for constant upgrade. From a moral perspective, to come up with a new and innovative way, vendors have to make us commit to the engagement but not to the numbers.
In terms of functionality, there should be better integration between cloud vendors. There are several tools available, yet, it is a time-consuming act to integrate them. In addition, there should be consortiums of sorts between vendors so that out-of-the-box integrations are possible that enable less maintenance costs.

The Challenges encountered as a CIO

The foremost challenge is to establish a balance between customers and your superiors. CIOs are constantly asked to bring down the costs by their superiors whereas customers demand enhanced capacity, increased bandwidth, better resolutions and devices. It is a daunting affair to come up with methods to meet these requirements simultaneously. Another challenge is with respect to speedy execution of projects. Projects that took years are a thing of the past; the current demand is for shorter projects of six months, three months or even weeks. Patience is growing thin among the people involved in the industry; however, the industry as a whole is not yet ready to meet with this requirement. For instance, in case of network providers, it is a matter of few months to even enhance the bandwidth. Similarly, considering ERP Providers, it takes significant time to put ERPs into production. There is a lack of methodology that can effectively address these demands and match the high expectations. Therefore, it is another greatest challenge to come up such an innovative methodology.

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