How CIOs Can Benefit From Cloud Computing

by Preeti S    Nov 04, 2014

data security

Though cloud has become business as usual, the opportunities in its adoption are aplenty. The ‘cloud first’ strategies are gaining traction even as companies are moving select capabilities to the Cloud for cost-effective business solutions. 

An IDC report commissioned by VMware titled ‘Empowering Organizations in a Software Defined World’, states that software defined approach to managing IT will result in savings of an estimated US$4 billion between 2014 and 2020 in India, and it would be $5.5 bn from 2003 to 2020.

“Cost saving is one of the benefits CIOs can derive by implementing Cloud strategies,” says Balaji Rao, VMware, director, sales. In an exclusive interview with CXOToday, he said IT disruption, with emergence of technologies like big data and cloud, has changed the role of CIOs. They are required  to become more of business oriented. “There is a need to align business with technology. The CIO can optimize IT and resulting costs saved can be utilized to build other business abilities,” says Rao.


As the demand from businesses increases, the cloud requirements are evolving by the day. IT disruption is creating new challenges as well as opportunities for enterprises. With rising demands, everyone expects scalable and agile technology solutions, says Rao, adding the fundamental challenge is countering the legacy architecture and ensuring customers carry those legacy platforms. 

IDC expects that cloud spending will account for half of software, server and storage spending growth.   

“While cloud allows deployment of dedicated resources, CIOs need to work around how that can be used to support key applications,” he says.

Meanwhile, the IDC survey also identified the following technologies that the C-suite has shown interest in understanding and learning more about them– Integrated and Converged Infrastructure, Software Defined Networking and Storage, Open Source Cloud and Software Defined Data Center.

Software defined data centers are the norm for many enterprises. “With hyper converged infrastructure, the ability to consume infrastructure is rising. What is essential is how cloud vendors will maintain a level simplicity in understanding customer requirements,” said Rao.

There is a demand for agile services to build a cloud ecosystem – bringing together various complex components together for a cloud system. “The best cloud strategy would be a proper balance of hardware and software defined architecture. Software defined systems are more of commodities like servers, and manning software requires different capabilities, but it is more agile than hardware defined systems,” he says.

Automation of systems has provided better visibility as systems are monitored in real-time and infrastructure delivered in automated fashion. “In the process, the costs will come down,” says Rao.

Cloud adoption is expected to see new innovations in the wake of emerging technologies like Internet of Things and wearable computing. It seems the CIOs are already taking note of it, as an IDC survey, quoted by Forbes, says by 2016, 80% of CIOs will deliver a new architectural framework that enables innovation and improved business decision making.