IT is in the pilot’s seat when it comes to cloud spending

October 31, 2014

One might take it for granted that enterprise spending on cloud computing is under the purview of the IT department. The cloud is largely about information, after all – storing it, accessing it, analyzing it and everything else that requires the use of company data to drive progress toward business goals. And wouldn't it naturally follow that IT would be in charge when it comes to all things information?

Not exactly. The cloud's penetration into all areas of the enterprise have taken a good deal of control and decision making power away from IT and put it in the hands of those other departments' leaders. This contributed to what is known as shadow IT, which TechTarget defines as IT hardware or software that isn't officially supported by the IT department.

The dangers of shadow IT
The consumerization of enterprise IT solutions has given employees a great deal of freedom in how, where and when they can work. The level of convenience and productivity cloud computing offers both employees and employers have made them highly attractive. For this reason, BYOD workplaces are becoming commonplace and are allowing employees to use their own devices and cloud-based services, often independent of any regulatory oversight from IT.

Because the cloud services brought into the enterprise by employees acting on their own may not be up to the standards that the IT department has set, issues regarding security, regulations and performance may be magnified due to other employees' lack of expertise in proper IT procedures.

Fortunately, spending and curation of cloud services for the enterprise is beginning to come more under control of IT.

IT takes over enterprise cloud spending
InformationWeek reported that IT's days in the shadows are coming to an end. Recent data showed that spending on cloud computing increased by 38 percent over last year's mark, with 80 percent of that spending coming from the IT department itself.

This is consistent with the idea of IT acting as a curator of cloud services for the enterprise. In addition to developing in-house IT applications, IT will also create the portfolio of public cloud options from which the rest of the company can choose as they decide how they will work. With IT back in charge of cloud spending, the problems that come with the BYOD workplace can be mitigated through increased oversight.