Most Companies Lack Plan to Take Advantage of Cloud Computing, Resources to Develop One, TPI Research Shows

• Sourcing expert gives 5 reasons every company needs Cloud Computing strategy now

HOUSTON, October 13, 2010 ― Only 5 percent of companies have a Cloud Computing strategy while just 20 percent have the resources internally to develop one, according to a survey of more than 140 global IT decision-makers conducted by TPI, the largest sourcing data and advisory firm in the world and a unit of Information Services Group, Inc. (ISG) (NASDAQ:III), an industry-leading information-based services company.

According to TPI, there are five reasons why organizations need to develop a strategy now to take advantage of Cloud Computing’s disruptive impact on technology:

1. The iPad Effect on Business: The enormous popularity of the iPad has not only been lucrative for Apple, it has also shown the world how the rapid adoption of Cloud Computing by consumers is putting enterprises on the spot. As executives and employees have grown enamored of the iPad and its ability to access services from the Cloud with ease, they are increasingly attempting to use them for work. To avoid the risk and confusion created by individuals going around the IT department with their own ad-hoc implementations, organizations need a plan for supporting Cloud Computing widely.
2. Need for Cost Control: While the “Great Recession” may have subsided, uncertainty about the speed and timing of an economic recovery is keeping the pressure on organizations to reduce costs and limit investments until business demand returns. TPI Research has found that the ability to more tightly manage IT spending is the number one reason clients are interested in Cloud Computing. As budgeting for 2011 begins, organizations should be preparing to leverage this disruptive technology to reduce costs and capital expenditures and align future spending with value.
3. Pricing Confusion: In theory, the Cloud Computing market is pay-as-you-go. But in practice, it can be hard to discern just what you will pay and just what you will get. Pricing and terms vary widely, and there is no standard methodology for service level agreements. The business models for public, private, hosted and hybrid solutions are all different, and figuring out the best deal for your organization will require enterprise-wide planning, research and testing, all of which takes time.
4. Changing Landscape: There has been a flood of new Cloud-based offerings coming on the market recently, while intensification in merger-and-acquisition activity has caused major shifts in the service provider community. Organizations should be thinking of their Cloud Computing strategy as a roadmap that will help them navigate this increasingly cluttered landscape and arrive at the right set of vendors and solutions for their needs.
5. Only the Beginning: Cloud Computing only works as well as an organization manages it. The key to achieving the benefits it promises is with an integrated, centralized IT Service Management (ITSM) system dedicated to demand management, capacity management and service integration. The only path to such a system is through proactive strategic thinking well in advance of implementation. Migrating a service to the Cloud is only just the beginning.

“Cloud Computing is widely seen as the next evolution of IT services, yet only a fraction of organizations have a strategy for dealing with it,” said Kevin Smilie, Partner, TPI Cloud Computing Business Solutions. “Developing a plan to take advantage of this game-changing innovation in 2011 should be at the top of every CIO’s agenda.”

The TPI Cloud Computing Business Solution Unit advises clients interested in moving IT and business process operations to the Cloud as a way to reduce costs, improve flexibility or create scale to achieve their business objectives. With more than 270 years combined experience in IT consulting, including some of the industry’s largest Cloud Computing implementations, this team is uniquely positioned to provide companies with objective guidance on best practices for the identification, acquisition, transition and management of private and public Cloud solutions. To learn more, visit http://www.tpi.net/Hot/cloud-computing.html.

About TPI
TPI, a unit of Information Services Group, Inc. (ISG) (NASDAQ:III), is the founder and innovator of the sourcing advisory industry, and the largest sourcing data and advisory firm in the world. We are expert at a broad range of business support functions and related research methodologies. Utilizing deep functional domain expertise and extensive practical experience, our accomplished industry experts collaborate with organizations to help them advance their business operations through the best combination of business process improvement, shared services, outsourcing and offshoring. In 2010, the International Association of Outsourcing Professionals ranked TPI no. 1 in its Global Outsourcing 100: World’s Best Outsourcing Advisors. For additional information, visit www.tpi.net.

About Information Services Group, Inc.
Information Services Group, Inc. (ISG) (NASDAQ:III) was founded in 2006 to build an industry-leading, high-growth, information-based services company by acquiring and growing businesses in advisory services, including strategy, implementation and management, and market information, including market measurement, analytics and related product and services. In November 2007, the company acquired TPI, the largest sourcing data and advisory firm in the world. Based in Stamford, Conn., ISG has a proven leadership team with global experience in information-based services and a track record of creating significant value for shareowners, clients and employees. For more, visit www.informationsg.com.