Let’s refer back to the list we included in the first post in this series:

1. Define the enterprise architecture – how the systems fit together to provide the business solutions that the business units demand,
2. Manage the delivery of code for specific software packages – as part of cross-functional business/IT teams that will be run by the delivery managers situated within business units, and
3. Provide system and infrastructure support for those solutions that are developed.

If you’re a critical reader, you probably noted that the last two items in the list above can be outsourced effectively, and you’re absolutely right. These services are commodities; they can be provided by outsourcers and generally don’t require specific industry vertical knowledge. That lies in stark contrast to number 1 in the list above, which is not something that can be outsourced… Why?

What roles does your IT organization play? Is that list of roles aligned with what its list of roles will be in 2015… or even 2013? The answer – more than likely – is no. Your IT organization will change rapidly in the next few years, and Cloud computing will be both an enabler for and a direct competitor to the IT department of the future.

This is the first in a three part series. First, we’ll talk about how IT organizations will change in the next five years… and why. Second, we’ll talk about the growing role of enterprise architecture and why it will become the central function of IT departments moving forward. Finally, we’ll talk about Cloud-based solutions… and why they can be both enablers for IT change and competitors to solutions offered by IT departments. First, let’s discuss how IT will change in the coming years.

The “Cloud” is the subject of an unbelievable amount of hype. Pragmatism is seemingly dead in the technology world; it’s been replaced by an endless stream of hype that is in no way connected to reality… I thought that perhaps that was just a product of the trend toward ERP systems in the late 90′s or the moves toward tighter application integration in the early part of the last decade. Now, sadly, I see that we simply cannot stand to be pragmatic in our assessments of new ideas and new trends. So it is with cloud computing.

Many of today's cutting-edge companies are looking to leverage cloud computing where possible - to build customer-facing apps, CRM apps, Professional Services automation, etc. However, those same companies are simply not comfortable outsourcing some of their applications - such as order management, warehouse management, and critical banking or trading applications - to the cloud.  This stands to reason; these systems are either part of these organizations' set of differentiators or are simply too difficult to place outside of their "four walls".