Organizational and Business Paradigm Shift:-

Most businesses have an IT department that looks after central applications such as mail servers and web servers. The more business-related IT is performed locally by the business units or groups that deal directly with delivering a product or service to the customer. So you have a hub-and-spoke model wherein the centralized IT acts as a hub and the various business groups work autonomously in the periphery as spokes. If the central IT function is unaware of applications used by the various units or groups in the business, then those applications and their computers tend to be classified as shadow IT. If something were to go wrong with such an application or the computer hosting it, then there would be a problem in terms of support ability. A strong central IT department would refuse to support shadow IT whereas a weak one would support it at the cost of extra effort and money expended at learning about the system. In any case, shadow IT represents a potential Due to its non-standard nature, security violations as well as additional costs. For companies, the shadow represents the risk of business there.When more applications are available through cloud work, business entities are likely to increase the re-wrap on the shade because the cost of expenses will decrease, such as 10 figures. Because of a large scale of analysis provided by Cloud Computing, the ability to re-organize and support shadows will again reduce the qualification skills, And this will be a contributory factor in reducing shadow IT costs. Thus almost all the IT used in a company is bound to become cloud based. The central IT department, in order to survive, will need to evolve and become a cloud service broker. Doing this will ensure that the business departments will be enfranchised to work in a semi-autonomous centralized structure as far as IT is concerned. This will fur – there ensure that shadow IT becomes mainstream IT and so will no longer be classified as shadow IT. As a cloud service broker, the central IT department would become a special-ist branch of the purchasing department, since most of the IT and computational resources would be bought as services or used on a pay-as-you-go basis. The increased commodification of IT due to cloud computing and related technologies will make this more possible as the technical skillset requirement to use and purchase IT diminishes, as shown in figure 10. The IT department’s function will evolve to one that maintains cloud service contracts with cloud service providers, whose services would be listed and described in a cloud service catalog that the IT department would maintain. How would the IT department then measure the value of a cloud service? How would it compare various pricing schemes from different cloud service providers in order to select the services to be made available via its cloud service catalog? We consider these questions in the next chapter where we discuss price and value models

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