Cloud service providers understand the constraints of the current network topologies and are working hard to provide a flexible infrastructure that will allow any-to-any connectivity across multiple high-speed paths, minimizing the number of connections to each component of Infrastructure 2.0.
CIOs will need to position to be able to compete with Cloud Service providers or offer distinct advantages. For example, if an application runs on a SaaS cloud provider, but the data coming out of that system is critical for down-stream applications run in-house, it is only necessary to be close-enough to the price – internal services do not need to always be the least cost. CIOs need to be ready to clearly and forcefully articulate the value of tighter integration of applications. However, there will be many Internet-facing or standalone applications where potentially outsourcing could make sense. Internal systems will need to be nearly cost competitive with external services. To ensure that they will have to drive the IT organization as a whole towards the lowest cost IT Infrastructure 2.0, and plan to replace older technologies such as spanning tree or conservative depreciation factors before they impede progress.
Action Item: IT organizations will have to position faster to implement leading edge solutions, particularly for virtualized infrastructures and virtual networks. The internal private cloud should be modeled on best-of-breed service providers, and should include capabilities for self-service and charge/show back.