Thomas Bittman

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Thomas J. Bittman
VP Distinguished Analyst
18 years at Gartner
29 years IT industry

Thomas Bittman is a vice president and distinguished analyst with Gartner Research. Mr. Bittman has led the industry in areas such as private cloud computing and virtualization. Mr. Bittman invented the term "real-time infrastructure," which has been adopted by major vendors and many… Read Full Bio

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Private Cloud and Hot Tubs

by Tom Bittman  |  February 28, 2012  |  3 Comments

snow n iceSitting in my hot tub with my wife in central Wisconsin in February made me think about private cloud computing. Why? I was perfectly comfortable where I was, but I knew that eventually I was going to need to get out and make a run across the deck through below-freezing temperatures. I was going to need speed and agility. Which, of course, is the same reason for implementing private cloud computing.

ROI isn’t always going to be in terms of reduced costs. Sometimes it’s about improved quality of service. Sometimes it’s about agility. Sometimes it’s about all three. IT tends to think about IT investments in terms of cost-recovery, which is a wonderful thing. But the biggest benefit of private cloud computing is not going to be lower costs. Yes, automation can eliminate rote manual tasks and save operational expenses, but automation isn’t free. The biggest benefit of private cloud computing is agility. As in, business agility. As in, an investment that helps IT’s customers do more, faster, experiment more often, ramp up, ramp down, beat the competition, grow the business.

The business case for private cloud really requires the business to be involved. If the business, for some reason, sees no value in speed and agility, private cloud is likely a wasted investment. I’ve seen examples of private clouds deployed by IT without business involvement, and then – surprise, surprise – no one used it. Cloud Fail. I’ve also had IT organizations come to me saying they weren’t going to build private cloud services because they couldn’t reduce IT costs in the process. That’s doing a disservice to business customers who might be willing to invest to improve IT services in certain areas.

The good news is large IT organizations seem to get it. In a December 2011 poll at the Gartner Data Center Conference in Las Vegas, attendees were asked, “What is your main driver in moving to private clouds?”. 59% said “agility” – only 21% said “cost”. These folks get it. Sometimes you need to improve the bottom line with lower costs. Sometimes you just have to get from the hot tub without getting frostbite. Or get inside and lock the door before your wife can make it there. Priceless.

3 Comments »

Category: Agility Cloud Future of Infrastructure Private Cloud     Tags: , ,

3 responses so far ↓

  • 1 Alan Priestley   March 6, 2012 at 7:30 am

    Increasing business agility has to be the driving force behind IT moving to a more cloud-centric mode of operation – irrespective of whether it’s using a private or public cloud infrastructure. There’s been a lot reported as to why IT and the business won’t utilise cloud – security and loss of control being some of the key issues – but as the cloud industry matures these barriers are going away. A better understanding of why a business needs to utilise cloud also helps, especially in defining SLAs, both with the cloud service provider and the business units.

  • 2 The IT Pro - Pam Baker - Cloud ROI: How Much & How Soon?   April 10, 2012 at 4:50 pm

    [...] Bittman says that there is a value shift away from cost reduction and toward speed and agility. In Private Cloud and Hot Tubs, Bittman says, "IT tends to think about IT investments in terms of cost-recovery, which is a [...]

  • 3 Its (not) all about the Benjamins | In the Cloud   May 7, 2012 at 9:04 am

    [...] The last question is one of the most important ones you must ask yourself before embarking on any sort of cloud deployment project.  Deploying a private cloud or moving some operations to a public cloud is not free.  There is a cost associated with this as well as ongoing operating expenses.  So if it’s not going to produce a mountain of extra cash with the cost savings, why bother with the cloud or virtualization in the first place?  Distinguished Gartner analyst Thomas J. Bittman broaches the subject in a recent blog post. [...]

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