Oracle calls for bosses to give shadow IT issue more attention

Allowing lines of business to purchase their own cloud services causes all sorts of problems according to Oracle

The idea that spending on cloud products and services has been diluted away from the IT department to lines of business is something that the channel has been dealing with for the past couple of years.

Oracle has specifically looked at the trends in cloud adoption and discovered that 60% of businesses let business units make purchasing decisions, which leads to data silos, duplicate purchases and even mistakes in some technology acquisitions.

Having highlighted the problem that results from an uncoordinated cloud purchasing strategy the vendor looked for reasons why it was happening and pointed the finger firmly at funding, with many customers blaming traditional models for hindering innovation.

The conclusions from the Oracle research is that customers need to change their IT funding models if they are going to take advantage of cloud computing. It will also put the traditional channel contacts in the IT department back in charge of the corporate cheque book.

“The issues companies face with their cloud resources are less to do with the technology itself and more to do with a lack of synchronization across lines of business. Decision-makers in each department are increasingly making cloud purchasing decisions without involving the CIO due to the ease of procurement," said Johan Doruiter, senior vice president of Systems, Oracle EMEA.

The consequences if the current situation is left alone is that the growth of shadow IT, the cloud services purchased without the knowledge of the IT department, will continue unabated.

"Without one IT point-person to unify their cloud investment strategy companies will continue to struggle with individual departments tugging time and resource in opposing directions," added Doruiter.

“CIOs must work more closely with line of business leaders to ensure IT is supporting innovation. They must serve as ’cloud navigator’, collaborating with each department to manage cloud procurement issues, cost and risk and ensuring that all lines of business are working towards a common cloud strategy," he added.

Oracle is encouraging the CEO and CIO to become the force of unification for cloud spending and that call comes at a time when most resellers would agree the shadow IT issue has caused them some problems in terms of reaching pockets of budget across a customer's business.

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