TRIGGER: How much can IT Operations (ITO) reduce staff with cloud computing?

SETTING: Many ITO leaders are confused about the impact of cloud computing on staffing. Providers often tout staff reduction as a key benefit of cloud computing, which can be misleading. Here we examine the impact of cloud computing on ITO staffing.

SUMMARY: Cloud computing leaves ITO leaders with full accountability for service delivery to customers -- as it diminishes the ability to control the infrastructure directly. Cloud offers the potential to enhance business agility, innovation, and revenue growth, but you may find your staff is optimized for managing systems and components directly and may not be ready to manage services indirectly as required of many cloud offerings. You may discover that rather than staff reductions, you need to create new roles with new skills. You must consider this since cloud vendors are not as apt to describe these "hidden" costs, as they are the promise of staff reduction. To quantify staffing changes in the context of moving to cloud computing you need to identify your staffing requirements. Develop stress tests that exercise your existing service management capabilities -- staff, processes, tools, and values -- as you evaluate cloud utility and warranty. Regardless of any staff reduction from cloud computing, you will most likely need to adjust your ITO talent -- and this may require significant staff changes, including additions.

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KEYWORDS: Cloud Computing, business agility, staff reduction, stress tests, staff reductions, staff changes, service management, service delivery, accountability, infrastructure, warranty, innovation