Enterprise CIOs are not going to Step Back from Data Centers Anytime Soon

It is worthwhile to take a break from our recent focus on selling techniques to focus on enterprise software product marketing. The big question, as we see it, is what to make of all the recent press about top manufacturers of IT software like Hewlett Packard, IBM Corporation, Microsoft, SAP and even Oracle talking up cloud computing. Further, some of these same companies — including Hewlett Packard and SAP — have even mentioned cloud computing “strategic” initiatives during their quarterly earnings reports with the public.

We think that cloud computing is at least 90% hype as regards the true Fortune 1000 enterprise market for IT software, services and integrated solutions. Further, we think that this condition will likely continue for at least the next five years and, potentially, 10 years. Here’s why:

Enterprise CIOs have been building secure, 24×7 no downtime on premises data centers since the mid 1970s. Confidence levels approach 100% as regards the usefulness of these data centers. Therefore, what would entice enterprise CIOs to roll the dice on cloud computing, which is simply a variant on the time share phenomenon of the late 1970s and early 1980s? Would it be the equally vaporous Bring Your Own Device (BYOD) trend? We don’t think so. Fortune 1000 businesses have long had the ability to support remote computing with a set of policies and procedures that completely conform to their respective prescribed conditions. There is no reason for compromise on these points. iPhones and tablets, Android phones and tablets and now the Windows phone and soon to debut tablets can all communicate within the approved parameters of remote computing with these data centers. Where lies the need for new applications for the data center to support remote computing?

The above information is offered to assure innovative technology entrepeneurs who are truly looking to “go where no man has gone before”, in other words who want to build promising applications which will require “old fashioned” local installation, to stay the course. We think that on premise solutions will still be in demand for years to come. Further, the almost daily occurrence of security breaches at popular Internet “cloud” services will act as nothing less than a major deterrent for enterprise CIOs to move off of the data center to a public “cloud” application accessible over the public Internet.

We think that the real sweet spot for “cloud” is actually the Small to Medium size Business (SMB) market, which is entirely consistent with the success of time sharing (via minicomputers) in the late 1970s to mid 1980s. Microsoft’s Office 365 and Salesforce.com have certainly demonstrated that the SMB market is desirable and promising. Nevertheless, our focus remains on marketing and selling enterprise IT software to Fortune 1000 businesses and organizations of comparable size in the public sector. If you endorse our view and would like to discuss your specific business needs for improvements in marketing and selling your enterprise solutions, then please contact us.

You may telephone Ira Michael “Mike” Blonder at +1 631-673-2929 to further a discussion. You may also email Mike at imblonder@imbenterprises.com.

© IMB Enterprises, Inc. & Ira Michael Blonder, 2012 All Rights Reserved

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