1. Info-Tech Research Group1 Info-Tech Research Group, Inc. Is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2013 Info-Tech Research Group Inc. Headline / Subhead Vertical Spacing V3.1 Create a Cloud-Enabled IT Organizational Structure The cloud means the end of in-house IT as we know it. Is your IT organization ready?

2. Info-Tech Research Group2 The cloud is currently the greatest disruptor of in-house IT organizations. It demands a new IT model to restore IT’s relevance and prevent IT from being completely disenfranchised. Introduction Mid-size to large organizations that are faced with more and more pressure from the business to increase agility and lower costs, and recognize cloud services as a viable option. In-house IT organizations that own and operate their IT solutions and infrastructure, and are, or will be, transitioning to a predominantly cloud environment. CIOs who wish to optimize their IT organizational structure to capitalize on the growing presence of cloud in their organizations. Determine the likelihood of moving services to the cloud. Identify the timing for moving services to the cloud. Assess the impact of such a move on the structure of your IT organization. Create an action plan to transform your in- house IT organizational structure for the cloud environment. This Research Is Designed For:This Research Will Help You:

3. Info-Tech Research Group3 Executive Summary The cloud is causing the most significant disruption to the IT organization as we know it. The trend to cloud adoption is picking up speed, and as confidence in cloud services and service providers increases, the adoption curve will accelerate. All parts of the in-house IT organization will be affected. IT departments that fail to prepare for this inevitability will find themselves increasingly marginalized while more nimble IT departments take advantage of the trend to create strategic opportunities for their organization. The cloud challenges the conventional “own and operate” IT model characterized by Plan- Build-Run. Historically, IT has controlled the hardware and software in the data center, as well as the delivery channels for connecting end users to data center resources. With cloud, IT is increasingly losing control of its role in application selection and development as the business contracts directly with cloud providers for software solutions, using their own OPEX budget. A new model is needed. The new model – Enable-Integrate-Manage – recognizes IT’s transformation to a service organization. Enable-Integrate-Manage demands a new organizational structure. Some of the roles that are prominent in the traditional in-house IT department will be pushed to the cloud to make way for those that focus on strategy, emerging technologies, service management, architecture, and analytics. The in-house IT department will be smaller. IT must proactively manage the transition. An uptick in the IT workforce and spending over the transition is likely, as well as service disruptions. However, as the transformation takes shape, organizations should enjoy the potential benefits of lower TCO and lower CAPEX, as well as greater flexibility, agility, and efficiency.    

4. Info-Tech Research Group4 Cloud-Enabled IT Model Classic IT functions will disappear to the cloud, and others will gain importance, while the overall size of the in-house IT workforce will decrease significantly. A dramatic shift to the cloud means the end of in-house IT as we know it Strategy & Architecture In-house IT Staff Security Projects In-house IT Staff Development Testing Mgmt. Projects Mgmt. Infra. Support/ Help Desk Operations Service Mgmt. Strategy Business Analysis The biggest impact will be on operational and technical staff, for example, data center staff, project staff (developers, testers, etc.), and help desk staff. Their numbers will be reduced significantly. The size of the circle indicates the relative proportion of staff to each IT function. Current IT Model Vendor Management Big Data Analytics

5. Info-Tech Research Group5 Get ahead of the cloud curve to avoid obsolescence The trend to the cloud is well under way and the importance of the cloud to business is enormous: entering a new market can be done in hours, launching a new product in minutes, and complex testing and development in mere days. And with the ever-increasing “anything as a service,” the options for businesses will grow exponentially. All parts of the in-house IT organization will be affected. Indeed, there is the potential for IT itself to move to the cloud – from a department that manages cloud services to a cloud service itself. If IT cannot move faster and show the business what is possible, it will become increasingly marginalized, and will likely to be absorbed into the cloud and the business. IT leaders need to move their department away from the role of infrastructure builder. This change will be difficult, but it will be worse for your IT department if you do not take the time to prepare. Info-Tech can help you prepare for and manage the change to your in-house IT organization. Clients who follow our advice will have: ◦ A well-considered approach and plan for facilitating the change. ◦ The opportunity to become a strategic business leader, with an essential position in the organization. IT leaders get to choose which outcome they’re going to land on. The IT leader who understands goals (as opposed to tactics) and can harness people might be able to generate the next generation of the IT department. If IT cannot deliver, they will lose the fight. - Ron Schwartz, Partner, Adante Consulting The cloud will reshape the way you do business. Plan for your organization’s adoption of the cloud before it’s too late.

6. Info-Tech Research Group6 Transform your in-house IT organization to remain relevant to the business in the ever-increasing cloud environment Use Info-Tech’s approach to optimize the path to your ideal, cloud-enabled IT organization. Transform Your In-House IT Organization Develop your cloud vision and timeline Assess impact on your IT organization Build your transformation action plan IT needs to have an aggressive plan to drive the transition to cloud services. They must identify where they think the opportunity exists and lay out a blueprint to understand where they start and how they will drive the transition. - Jerry Bishop, CEO and President, The Higher Ed CIO Identify your IT services that are cloud candidates Define the timing for moving them to the cloud Identify the roles that will be affected Determine the number of affected FTEs Design your new organization structure Build the case and plan for change

7. Info-Tech Research Group7 Use the pathfinder below to address specific questions about the cloud-enabled organization QuestionImportance or AnswerSlide What factors are driving cloud adoption? The potential for lower TCO and lower CAPEX14 Perceived issues with delivery of IT services by in-house IT15 A decrease in the burden of internal infrastructure16 Why should IT care about the cloud? The cloud disrupts all aspects of the IT value chain12 With many of the traditional IT responsibilities being pushed to the cloud, there is potential for in-house IT to be absorbed into the cloud and the business 5 IT is increasingly losing control of its role in application selection and development55, 2626 What is the impact on in-house IT organizations? The IT department of the future will be smaller1818, 33, 35, 37333537 New capabilities will be required1919, 2020 A new model is needed to replace Plan-Build-Run2626, 2727 How can I assess the impact on my IT organization? Use Info-Tech’s Cloud Organizational Assessment Tool to determine how your IT organization will be affected 22 How can I determine whether I have the capabilities for a cloud- enabled IT organization? Use Info-Tech’s Cloud Capability Mapping Tool to assess the competence of your staff on four key capabilities needed in your new organization 45 What steps should I take to prepare my organization for the impact of cloud? Create your cloud vision50 Assess your IT organization51 Design your new IT organization structure52 Create your business case54 Develop your implementation plan56 Implement your new IT organizational structure57

8. Info-Tech Research Group8 How to use this blueprint We recommend that you supplement the Best Practices Blueprint with a Guided Implementation. For most Info-Tech members, these Guided Implementations are included in your membership plan.* Our expert analysts will provide telephone assistance to you and your team at key project milestones to review your materials, answer your questions, and explain our methodology. Info-Tech Research Group’s expert analysts will come onsite to help you work through our project methodology in a 2-5 day project accelerator workshop. We take you through every phase of the project and ensure that you have a road map in place to complete your project successfully. In some cases, we can even complete the project while we are onsite. Do-It-Yourself Implementation Use this Best Practice Blueprint to help you complete your project. The slides in this Blueprint will walk you step-by-step through every phase of your project with supporting tools and templates ready for you to use. Project Accelerator Workshop You can also use this Best Practice Blueprint to facilitate your own project accelerator workshop within your organization using the workshop slides and facilitation instructions provided in the Appendix. Book your workshop now by emailing: workshopbooking@infotech.com workshopbooking@infotech.com Best Practice Blueprint Free Guided ImplementationOnsiteWorkshops * Gold and Silver level subscribers only Or calling: 1-888-670-8889 Ext. 3001 There are multiple ways you can use this Info-Tech Best Practice Blueprint in your organization. Choose the option that best fits your needs:

9. Info-Tech Research Group9 Book a free guided implementation today! Info-Tech is just a phone call away and can assist you with your project. Our expert analysts can guide you to successful project completion. For most members, this service is available at no additional cost.* Here’s how it works: 1. Enroll in a Guided Implementation for your project Send an email to GuidedImplementations@InfoTech.com Or call 1-888-670-8889 and ask for the Guided Implementation CoordinatorGuidedImplementations@InfoTech.com 2. Book your analyst meetings Once you are enrolled in a Guided Implementation, our analysts will reach out to book a series of milestone-related telephone meetings with you and your team. 3. Get advice from a subject matter expert At each Guided Implementation point, our Consulting Analyst will review your completed deliverables with you, answer any of your questions, and work with you to plan out your next phase. * Gold and Silver level subscribers only This symbol signifies when you’ve reached a Guided Implementation point in your project.

10. Info-Tech Research Group10 Guided Implementation Points in the Cloud-Enabled Organization project Book a Guided Implementation Today: Info-Tech is just a phone call away and can assist you with your project. Our expert Analysts can guide you to successful project completion. Here are the suggested Guided Implementation points in the Cloud-Enabled Organization project: Section 1: Prepare for the Cloud Revolution Get off to a productive start: Speak with an analyst about your Cloud Organizational Impact Assessment results from step one of the tool. Section 2: Assess the Implications for Your IT Organizational Structure Schedule a call to discuss what your next steps will be after completing the final part of the Cloud Organizational Impact Assessment. Gain insights to validate and prioritize your recommendations. Then speak with an analyst to review your results from the Core Capability Mapping Tool to assist with linking the results of this tool to the Cloud Organizational Impact Assessment and determine future actions. Section 3: Create Your New IT Organizational Structure Have an analyst review your Transformation Plan Template to ensure you haven’t missed anything and to help you fill in any blanks. Our analysts will help you get your implementation plan off the ground. Then speak with an analyst to review your Transition Plan Checklist and uncover any missed steps, and discuss how you can achieve desired results at each step in the process. To enroll, send an email to GuidedImplementations@InfoTech.com or call 1-888-670-8889 and ask for the Guided Implementation Coordinator.GuidedImplementations@InfoTech.com This symbol signifies when you’ve reached a Guided Implementation point in your project.

11. Info-Tech Research Group11 What’s in this Section:Sections: Prepare for the Cloud Revolution Assess the Implications for Your IT Organizational Structure Create your New IT Organizational Structure Key drivers of the rise of cloud services Business benefits of cloud Implications on in-house IT The new IT model

12. Info-Tech Research Group12 Info-Tech Research Group Helps IT Professionals To: Sign up for free trial membership to get practical solutions for your IT challenges www.infotech.com Quickly get up to speed with new technologies Make the right technology purchasing decisions – fast Deliver critical IT projects, on time and within budget Manage business expectations Justify IT spending and prove the value of IT Train IT staff and effectively manage an IT department “Info-Tech helps me to be proactive instead of reactive – a cardinal rule in a stable and leading edge IT environment. - ARCS Commercial Mortgage Co., LP Toll Free: 1-888-670-8889