Five Cloud Myths

I know, this is a BI Blog, not a Cloud Blog but the Cloud is affecting everything and whilst BI in the Cloud will be difficult, it's journey from on-premises to cloud might be long but ... it is inevitable.

In any case, I have heard and would like to dispel the following five myths that I have heard at least once in the last few weeks.

Myth 1. Cloud will Dis-intermediate
I remember a keynote presentation from a presenter I deeply respected on the explosion of the web and how it would bring about dis-intermediation. The logic was sound. Consumers can connect directly with providers so the need for brokers, intermediaries and miscellaneous third parties appeared to be unnecessary. The growth of cloud computing has caused some to predict the same and yet a cursory glance of the services on offer will demonstrate there is no reduction in intermediaries or intermediation opportunity. If a service, offering or product will make things easier for a consumer then they will buy it. It might be comparison, consolidation or simply cheaper prices but if you can add something and make the connection painless then you can come to the party and make money for adding value.

Myth 2. Cloud is Bad for Services
With infrastructure issues 'solved' and the availability of commodity services that fix common problems like tax  and currency exchange calculations some are suggesting that the opportunity for consulting provision will diminish. My educated response to this is 'yeah right' I have yet to meet the business that has solved all the issues and is not looking for any more innovation to reduce cost or get a competitive leg-up. If the simple things are going to get solved in one place then fantastic, we can all move on to innovating and adding real value. We're all tired of solving the same problems so let's get the solutions in the cloud and build some real innovation on top of them.

Myth # 3. Cloud Means Blue Sky
Hmm. Cloud encourages a lot of blue sky thinking. But there are few businesses starting with a clean sheet (if you will pardon the mixed metaphor) There are on-premises systems to integrate, proprietary solutions that will not leave the office without a fight and that's without thinking about how difficult Cloud BI can be given that it involves the complex integration of what is often large volumes of data. And multi-tenanted solutions need everyone to play nicely so those queries from hell need to be reigned in or it stays on-premises.

Cloud is (like Performance Management) a journey that needs careful planning whilst delivering improvements along the way.

Myth # 4. Cloud is ASP
This is usually suffixed with the phrase 'but marketed differently'. Of course, it has some commonality with the principles of application service provision but to dismiss it as 'the same as' is to miss the point as profoundly as  Cloud will change our industry.

Myth #5. Cloud is a Fad
Actually Myth #4 is often rolled out as 'evidence' of just how faddish Cloud is. In fact Cloud is having an impact on all system wherever it is physically located. Users now expect their systems in the office to be as easy to use and visually appealing as the web sites they use at home. In fact they do both in both locations. Cloud has also set the expectation that all systems will be available on all devices. It's not mobile or desktop anymore, it's a range of devices.

As final evidence that Cloud is not a fad, it's clear to me that to be a successful cloud vendor, like Salesforce, then you have to continue to show value month after month or your users will go elsewhere. As Phil Wainewright, CEO of Procullux Ventures put's it ... software used to be a holiday romance but cloud requires a long-term relationship. If that means I am married to Marc Benioff then I might need to re-think the analogy but there is no doubt that Cloud vendors need to play the long game.