Archive for November, 2009

Going Green in the Data Center

November 9, 2009

In the last several blogs I wrote about the prevalence of outsourcing to reduce cost within the Enterprise. I would like to take a brief look into another method of cost reduction which is gaining momentumand that is the “Green Data Center through Virtualization” and “Cloud Computing.”

IT is in the middle of a fundamental transition from the rigid traditional data centers toward a more responsive model where needs are met far faster and more efficiently. Over the past several years, many IT departments have committed to virtualization as a solution to the spiraling energy costs and inflexibility plaguing corporate data centers. By running applications on virtual servers and consolidating underutilized hardware, data centers can get maximum value from their equipment. By utilizing the existing servers in the Data Center in a virtualized environment the cost of energy utilized to run, cool and operate the data center can be impacted. 

While virtualization helps companies reduce energy costs and improve agility there is another step that can be taken (with care) by introducing cloud computing infrastructure solutions in to the environment. Cloud Computing is a form of computing in which all applications, information and resources are managed in a virtual environment. The term cloud computing and specifically the use of the word “cloud,” means to represent the nature and structure of a cloud. Cloud computing involves virtual hosted environments allowing users to connect to the services being hosted over the internet.

With that said, cloud computing is not for everyone, but is does pose an interesting solution to going Green with in the data center.

Rather than increasing the number of servers and storage in the data center even within a virtualized environment, a new cloud computing model will allow companies to get out of the computing infrastructure business–where appropriate–retaining only the portion that is essential to the enterprise. As the cloud environment becomes more mature and secure, purchase decisions will be framed by asking: Should we be really be doing this ourselves, or can someone else do it better and at lower cost?  Essentially it is another type of outsourcing.

In the end, the best way to think about this is probably to view it as being yet another type of application deployment architecture. If the challenges that cloud computing is facing today, such as security, can be overcome then CIOs have another tool to reduce overall IT costs and contribute to the “Green Data Center” Concept.

Is there a role for the CIO in Business Process Outsourcing?

November 4, 2009

In my previous posts I spoke about outsourcing and offshoring as it pertains to IT. But what about business pocess outsourcing (BPO)? Is there a role for the CIO to play in this decision?

The answer is very simple and unequivocal – YES. Today, though the decision to outsource / offshore business processes may not be taken by a CIO, but the CIO has a significant role to play in the decision.

The role that the CIO plays in this decision is centered around the availability and access to the information for the department that is being outsourced. Information Systems are the backbone of BPO. By implementing the right Information Systems to automate business processes and creating a technology environment that can be modulated. BPO will not succeed if it is not backed by a strong Information Systems.

By implementing the right software applications / products, the CIO plays a significant role by providing transparency to the business owners on the near real time performance by the BPO Service Provider.

Without the contribution from CIO and his team, the actual BPO arrangement is more than likely face some difficulties.