Following the last blog post, a reader asked, “Why is my IT department reluctant to leverage Software-as-a-Service / cloud computing?”

I attended an excellent webinar hosted by Peter Coffee of salesforce.com that inspired the last post.  In the webinar, Mr Coffee surveyed the reasons the audience was reluctant to adopt cloud computing.  A common response was “security and control”.  I was surprised since cloud applications generally leverage thin client architecture that offers more security benefits than traditional on-premises Smart client or thick client architecture.  With thin client architecture, all data is stored at the server level and never cached on the accessing desktop, laptop or mobile device.  When appropriate safeguards are in place such as encryption, forced strong passwords and a SAS 70 certified data center, the risk of data loss in the cloud with thin client architecture is minimal.  Conversely, on-premises applications typically leverage Smart client and thick client architecture that store data on the accessing device.  As such, the risk of data loss from on-premises solutions that leverage older architectures is greater than a cloud solution.  For security, governance, risk and compliance organizations that leverage incident reporting, case management, dispatch and guard tour software where user counts often exceed 300, the risk of data loss inherent upon relying on older architecture is greater than the risk of data loss in the cloud because the number of “at risk” devices is exponentially larger.

Even more puzzling, the audience cited “control”.  Business users have never controlled traditional on-premise solutions – programmers and consultants have.  With configurable platforms available in the cloud, business users have been given unprecedented control of applications they use on a day-to-day basis.  Moreover, executive sponsors gain additional control in the cloud because they can exit the cyclical budget chaos of traditional on-premises solutions.  Software realized as a service (SaaS) minimizes up-front costs and delivers predictable future costs.  The executive sponsor buys function, not infrastructure (see chart from Mr Coffee’s presentation).  With the benefits of using the provider’s most current software version, the executive sponsor experiences a higher level of satisfaction because he develops a working relationship with the provider who is motivated by the prospect of a long-term predictable cash flow.

To answer the question, IT departments are reluctant to leverage Software-as-a-Service in the cloud because it requires they cede control to business users and deliver information security compliance rather than application and infrastructure.  As a business user, I prefer customer support delivered by a solution provider because I’ve experienced the broken IT customer support model.