Cloud presents CIO challenge

This is according to technology company Gartner, which says cloud computing and offshoring are becoming mainstream, and are quickly changing the IT market.

“The hype around cloud computing services has increased interest as so then as caution for CIOs trying to determine where, when and if cloud services can provide valuable outcomes for their businesses.”

Ridder points out that cloud computing is driving discontinuity that introduces exciting opportunities and costly challenges. “Organisations need to understand these changes and develop realistic cloud sourcing strategies and contracts that can reduce risk.”

Cloud-driven business and IT services include all types of solutions that are developed, bundled and packaged as outsourcing service offerings for which the business or IT service provider uses one or more cloud computing technologies within the solution's overall architecture, Gartner explains.

These services can be delivered directly by a cloud provider or via a service aggregator for the delivery of pre-engineered and configurable business solutions in a timely and cost-effective manner, the technology firm points out.