ISG Research with HCL: Targeted, Discrete Cloud Initiatives Most Effective

Analyses of client engagements identify key success factors and objectives

Cost reduction remains top priority as buyers become more skeptical of market hype

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Mar 26, 2013, 09:26 ET

STAMFORD, Conn., March 26, 2013 /PRNewswire/ -- Information Services Group (ISG) (NASDAQ: III), a leading technology insights, market intelligence and advisory services company, today released a joint white paper showing that a step-by-step approach to cloud adoption focused on specific service areas or functions is most effective for large organizations.

The analysis, jointly authored by ISG and HCL Technologies, examines how organizations are integrating cloud-based services into traditional operational environments, assesses industry- and company-specific objectives, and employs case studies to illustrate various cloud scenarios and client priorities.

"As enterprises take a gradual approach to cloud adoption, traditional IT delivery models remain highly relevant," said Stanton Jones, Analyst, Emerging Technology at ISG, and one of the report's authors. "The most effective cloud deployments tend to be discrete initiatives focused on specific business requirements and workloads."

The analysis also found that clients are becoming savvier about cloud offerings – and more leery of vendor claims.

"Market hyperventilation regarding the potential benefits of cloud computing is giving way to a more reasoned approach," said Kalyan Kumar, VP & Chief Technology Architect, HCL Technologies – ISD, and the report's co-author. "Clients perceive correctly that implementing cloud solutions is not as easy as cloud suppliers suggest, and are picking and choosing specific business problems, then identifying the appropriate cloud service and deployment model to adopt."

The analysis includes the findings of a survey conducted by HCL of over 40 of its global clients during the past 12 months. Clients were asked to prioritize from among four potential outcomes from a cloud initiative: cost reduction; scalability; consolidation; and service improvement. The results are shown below, by geography.

"Cost reduction – always an imperative – remains the dominant objective driving cloud adoption globally," said Kumar. "In addition, cloud platforms provide the option to cost efficiently pilot new processes and applications, freeing up critical capital to invest in growth areas."

Case studies included in the analysis detail how both ISG and HCL have worked with clients to define objectives and achieve results from cloud initiatives. In many instances, the projects delivered a range of benefits, such as, for example, significant cost savings coupled with process improvement and increased agility through moving to a standardized environment.

The analysis also examined the constraining impact that business requirements, industry regulations and poorly defined standards have had one cloud deployment.

"Cloud options and benefits are limited for customers requiring hardware-based separation of critical data," said Jones. "Moreover, in many industries regulatory requirements have failed to keep up with technology advances. As a result, many IT organizations seeking to adopt cloud-based services are currently constrained by outdated regulations."

The complete white paper, titled "Adding Cloud to the Service Delivery Mix: Business Drivers and Organizational Considerations," can be downloaded at http://www.isg-one.com/knowledgecenter/whitepapers/private/papers/White_paper_-_Cloud_Delivery_ISG_HCL.pdf.

About Information Services Group
Information Services Group (ISG) (NASDAQ: III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 800 employees and operates in 21 countries.

For additional information, visit www.isg-one.com.

SOURCE Information Services Group (ISG)