This research note is one of series of documents describing KuppingerCole’s basic positions and providing insights into IT Service and Information Security Management. It describes the varieties of Cloud services and delivery models, the principal risks associated with Cloud computing and how the Cloud fits within the IT service delivery options for an organization. It relates the Cloud back to the basic building blocks of IT service delivery which together form the basis for effective organization of IT departments.
The Cloud provides an alternative way of providing or procuring IT services and offers many benefits including increased flexibility as well as reduced cost. It extends the spectrum of IT service delivery models beyond managed and hosted services to a form that is packaged and commoditized. In KuppingerCole’s opinion, Cloud computing isn’t a strategic question for IT or business. It is just an alternative way to obtain or provide the services that business requires. It needs to be considered together with other alternatives using standard criteria such as risk, security and efficiency. Cloud computing will co-exist with other IT service delivery models and in KuppingerCole’s view integration and orchestration will be key challenges.