By Erik Sherman

After only a few short years, cloud computing is poised to cross the line from technical curiosity to a viable resource for many modern IT infrastructures. But as early adopters know, achieving the full technical and business benefits from cloud computing requires new ways of managing IT. That's because CIOs today are creating heterogeneous IT production environments that combine traditional IT infrastructures with private and public clouds, and delivering computing as a service. According to early adopters, CIOs who wish to enjoy all the benefits this heterogeneity can deliver will need new IT management tools and practices.

Cloud computing is entering the mainstream in large part because it offers CIOs several significant benefits. These include lower operating costs, increased scalability, faster implementation, and better engagement between IT and the business. All are benefits any CIO would welcome.

But perhaps the most important value is that CIOs can now think of computing as a more dynamic resource: CPU cycles, bytes of storage, or virtualized network I/O are no longer chained to applications. Instead, cloud computing is about tapping pools of capacity and only drawing down as much is needed. If a given application requires more computing power, IT can simply add that additional power, rather than buying a whole new server.

"Cloud computing technology has created new options for the peak load," says Marty Sunde, Senior VP for Global Infrastructure Management Services and Customer Data Integration at Acxiom Corp., a Little Rock, Ark., provider of global interactive marketing services and infrastructure management. "In the past, it was not technically or financially feasible to consider a short-term period or specialized rental to satisfy a business need. But in the future, businesses of all sizes will have viable options."

Indeed, cutting-edge CIOs are beginning to make cloud computing work. Ten percent of global enterprises are now planning cloud systems, finds a Kelton Research survey, and in the United States that figure is nearly 25 percent. And between January and September of 2009 alone, cloud computing planning and testing activities rose by a stunning 320 percent, Kelton found. Looking ahead, another recent survey, this one conducted by Evans Data, finds that nearly half of all IT developers expect to deploy enterprise applications via private clouds within the year.

Taking cloud computing technology to the next level requires new management strategies and network management tools. For example, when Inteva Products, a Troy, Mich., maker of automobile interiors, spun off from Delphi Automotive in March 2008, CIO Dennis Hodges knew that cloud computing would be part of the move. "Improving alignment between IT and business needs is the top item for CIOs every year," Hodges says.

Part 1 – Getting Started With Cloud Computing

Part 3 – Securing the Cloud