Brad Stone and Ashlee Vance recently wrote in the NYT that companies are “Slowly” Joining the Cloud. They’re joining alright, but probably more quickly than people might realize. This is particularly true when one realizes how fast start ups and smaller more agile firms are jumping onto the Cloud bandwagon because it just doesn’t make any sense not to. Here is a direct quote from the article:
When given a clean slate, many new companies have chosen a full embrace of the cloud model, figuring the technology industry has matured to the point were these types of services make basic business sense. For example, Arista Networks, a five-year-old company that makes networking equipment, runs its sales software with a cloud software company called NetSuite, its corporate e-mail on Google Apps, and other Web infrastructure with Amazon.com.
“It’s so much easier,” said Andreas von Bechtolsheim, the co-founder Arista and Sun Microsystems and one of earliest investors in Google and VMware. “For a new company like us, you would just never build a traditional data center anymore.”
And this is where the real story lies. You see while larger organizations might be wary of the Cloud, each day they fail to shift their IT infrastructure to the Cloud is a day the competition is gaining a leg. The same is true for all industries including franchising. Ironically, the ROI for larger corporations adopting the cloud is much higher than for smaller ones from a strictly cost benefit standpoint. From a strategic point of view the ROI is even higher.
Yes companies are adopting the Cloud and for the ones doing it slowly or not doing it at all, they best reconsider their long term viability.