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Using the cloud

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For Bryan Kinsella, the cloud strategy is paying off at an enterprise level. So far his team has moved close to 10,000 staff on to Google's email services; another 10,000 will have migrated by the end of the year. "We never went into this to get cost reduction," says Mr Kinsella. It was about "unifying the business... to operate and collaborate on a global basis."

Now he is rolling out Google Sites to share documents across Rentokil and create intranets for both the global company and its many divisions. It's this easy scaling that makes cloud-computing attractive. Insurance giant Aviva, for example, moved all its enterprise content management and business intelligence tools online, using Microsoft's Sharepoint online service. Logistics firm Pall-Ex can grow fast and cheaply by moving much of its IT to UK hosting firm Outsourcery. Universal Music is using the cloud computing services of e-commerce provider Venda to roll out its online store model across Europe. "It's so expensive to build a world-class e-commerce platform, no single retailer can build it by themselves unless they are the size of Amazon," says James Cronin, chief technology architect at Venda.

Competition boosts cloud computing

Cloud computing can be applied nearly anywhere: the small retailer that needs a secure e-commerce website quickly and cheaply; the ferry operator that has huge computing spikes in May and June while 90% of its IT system idle the rest of the year; the fire service that needs extra computing power to predict the movement of forest fires during the summer.

Cloud services range from fulfilling single business functions, say calculating payroll taxes, to outsourcing heavy-duty computing for complex 3-D modelling.

Many firms "have not moved significantly to cloud computing yet," acknowledges Cassio Dreyfuss at technology consultancy Gartner. But he predicts that "more dynamic" industries, "where business models change very fast, where competition is very hard... will move more quickly." Right now, the cloud computing market is worth almost $2.4bn, says Gartner and predicts that by 2013 this will have grown to almost $8.1bn.

Get ready now and map your company's IT needs, says Mr Hollis. "If IT is your company's differentiator you may want to keep it in-house." But most IT is just another service that "can go the same way as other corporate functions like finance, logistics and manufacturing".

 




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