The big switch

During my summer holiday i made a trip to Italy where i had time enough to read some books which lay on my bookshelf ready to read. The first book I read was the big switch of nicolass Car, Who also was the author of “IT doesn’t matter“.

In this new book he takes his statement even further when he compares IT with electricity. In the beginning every company has it’s own (small) power plant because power systems (direct current) cannot transport current over long distances. After a wile the shared plants came in, with these plant a few companies shared the power plant, they also standardized the devices consuming the power. But with the discovery of alternating current power can be transported over long distances.

Now the same thing is happening with IT systems, first there where shared service centers, now with Internet technology that is used in many applications  it is possible to “transport” an application over long distances. Some applications are already “standardized” for example sales-force.

My conclusion after reading this book is, this will be the future for office applications but not every thing will go into the cloud (like large ERP systems).

Cloud services will only arise when there are multiple customers for the service, otherwise it is just the hosting of a application. Besides that the customization of cloud services will be a big trick that needs to be done. When you look as SAP implementations nowadays almost every project requires customization to fit in a organization. So when you look at what the cloud can offer you see some standard products like an office suite, mail and calendar. But the full blown ERP like services don’t seem to get big that in the market.

Since small (new) companies can’t afford an customized Application they will be the first to give in to uncustomized services.