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type solution within its armoury that it describes as a ‘business<br />

process cloud’, which is a multi-tenancy solution. It only hosts<br />

TCS customers who are using the same software. Applications<br />

likely to be hosted on this cloud solution include the likes of<br />

finance and accounting, order management, and HR software<br />

products.<br />

This highlights how the traditional ITOs are to some extent<br />

encroaching on the services offered by the newer cloud providers.<br />

The lines are inevitably blurring somewhat. It is a similar<br />

story at JDA that developed a cloud proposition 12 months ago.<br />

outsourcing IT feature<br />

Joseph King, senior vice president of<br />

cloud services at JDA, says it is a private<br />

cloud that mimics that of Salesforce.<br />

com, but in contrast it is a single-tenancy<br />

environment. It also differs in being part<br />

of the “totality of the JDA offering”,<br />

according to King, which means that it is<br />

only available to users of its software.<br />

Unlike some other traditional ITOs<br />

King has a wariness of the new players<br />

and he warns that their co-mingling,<br />

multi-tenancy models might be “okay<br />

for certain business needs such as web<br />

messaging” but care has to be taken if<br />

they start to broaden their outlook.<br />

“The newcomers were initially aiming<br />

at less critical areas but they are now<br />

starting to get into the customer base<br />

[data]. What other applications that are<br />

run behind the firewall could they look<br />

to put onto their clouds? They are an<br />

interesting play but under the covers I’m<br />

not so sure,” he suggests.<br />

Value vs experience<br />

Although he admits that these new<br />

providers offer a good value service he<br />

says the benefit of the traditional ITOs<br />

is the years of experience that they can<br />

bring to bear on their clients’ businesses<br />

– pointing to the 25-year history of JDA.<br />

But there is some concern, according<br />

to Fujitsu’s Taylor, that the old guard are<br />

finding it difficult to work together with<br />

retailers to put long-term strategies in<br />

place, such is the pace of change of IT<br />

developments in the marketplace – partly<br />

as a result of the emergence of the<br />

cloud, which is without doubt a serious<br />

disruptor.<br />

Capgemini’s Skilton says there is also<br />

the issue of uncertainty within the EU<br />

around cloud adoption that is centred on the lack of training,<br />

lack of awareness of different standards, the safe harbour of<br />

data and privacy, as well as the terminology that is used by the<br />

different cloud providers. “This terminology debate will run and<br />

run,” he suggests.<br />

There is undoubtedly plenty that needs to be made clear<br />

and clarified to retailers about the cloud and quite possibly<br />

the people best placed to deliver this are the incumbent ITO<br />

providers. Provided that is, that they offer thorough objectivity<br />

and have embraced a future that, however you choose to define<br />

RS<br />

June - July 2012 RS 43

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