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The Official Blog of Max Effgen

Thoughts on the enterprise cloud

Max Effgen, February 24, 2009

Computing is moving to the cloud.  The names may change and the technology may be different; however, this idea is not new. See Martin Greenberger’s Essay dated 1964. Recall mainframe timeshares, application service providers, “on demand” or more recently the “as a Service” marketing tags. The current iteration, Cloud Computing (real-time, scalable resources available via the Internet), is a fulfillment of the idea that computing power could be a utility.

The enterprise can take advantage of this trend by understanding their core differentiators and the business processes that affect that differentiation. In short, what makes a company great. Enterprise, computing, in any form, has always been about value to the core competency. In considering cloud technologies for business processes, you must answer the following questions:
1) Is this a core competency? Will the top line suffer if this is not implemented?
2) What skills and infrastructure are required? Just because the process or technology is in the cloud does not mean that you will not need someone who understands it.
3) Viability of provider: Value, Due Diligence and Trust. How do they match up?

Return on investment (ROI) has been and will continue to be a key driver for technology purchases. Lowering IT costs is always a consideration and even more relevant in the current economy. A major consideration for any IT Department will be the core business. Take the often cited clock maker. Building the clock is core. Telling the time is not core. E-mail is critical to any business, but it is not necessarily core. Given the options on the market, a cloud offering might make sense, but make sure you answer those questions.

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Max Effgen

Max Effgen

Builds and grows technology companies as an entrepreneur and angel investor backing early-stage companies in AI, health and wellness, ultra-low power radio, and enterprise software. Snowboarding, baseball, swimming, running, coaching, photography, backpacking and skyscraper stair climbs happen off the clock. Also, I am a SABR Contributor, live in Seattle and from Chicago.

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