Mar
2
2010

Where are We in the Cloud Computing Paradigm Shift?

An article by Steve Bobrowski

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I’ve written in the past that change is something to embrace, not fear. Reaction to change is a particularly interesting thing to consider with cloud computing because it has the potential to disrupt the status quo and modify business models in countless industries from software, entertainment, energy (smart grid), and many more.

The book Software Engineering – Agile Software Development Evaluating the Methods for Your Organization by Alan S. Koch. has a thoughtful section in Chapter 6 called “Changing work patterns.” The section includes an illustration with the caption “Responses to change” that is meant to show the general phases of Agile method adoption by software developers and their energy level at various stages.

Response to change, from "Software Engineering - Agile Software Development Evaluating the Methods for Your Organization" by Alan S. Koch

I think this illustration is also useful to consider in the context of the current cloud computing paradigm shift. Here’s how I would apply it to our current situation.

Status Quo

The status quo, on-premise IT resource providers, rule the world. Some more recent examples would be Oracle, IBM, and Microsoft on-premise business software products.

Denial

Cloud computing products begin to appear and gain traction, and quite predictably, the status quo ignores that it is relevant. Some examples would be the appearance of Salesforce.com CRM, Yahoo! Mail, and other SaaS apps, coupled with the aforementioned status quo companies being slow to react.

Resistance

Cloud computing gains momentum because customers want it. The status quo now recognizes cloud computing, but actively resists and attempts to invalidate cloud computing because it is disruptive to their comfortable way of life. The best example I can think of is Larry Ellison ranting “all it (cloud computing) is, is a computer attached to a network. What are you talking about?!”

Bargaining

Status quo companies begin to see that resistance is futile, and attempt to catch up with leading cloud computing innovators. IBM and Microsoft are two examples of the status quo that has made significant investments in moving toward the cloud.