From Cloud Illusions to IT Realities: The Truth That CIOs Really Need To Hear

Cloud computing has become a cornerstone of modern IT infrastructure, offering scalability, flexibility, and cost-efficiency. However, it's not without its challenges. IT leaders often find themselves in recurring conversations with their CIOs when dealing with cloud computing and organization staffing strategies. Given that it is time to share and hopefully educate the decision makers as to what is at stake along the cloud journey, we will explore some of the common questions and responses that arise in these conversations, akin to the "5 Whys" technique, to shed light on the issues faced and possible solutions.

The "5 Whys" is a problem-solving technique that originated from the Toyota Production System, a methodology for improving manufacturing processes. It is a simple yet powerful method for identifying the root causes of problems or issues by asking "why" repeatedly, typically five times, hence the name "5 Whys."

The primary goal of the 5 Whys technique is to get beyond the symptoms of a problem and uncover the underlying causes. By asking "why" multiple times, you can dig deeper into the issue and identify the causal relationships that lead to the problem. It helps to avoid addressing only the surface-level symptoms of a problem and instead focus on solving the underlying issues to prevent the problem from recurring.

While we won't go that length of getting to the root problem, the concept was worth defining as a point of reference moving forward. The following are some common questions we repeatedly hear in working with our clients in their digital transformations via cloud computing:

CIO Question: Why has our performance decreased when running on cloud hardware?

IT Response: It's crucial to understand that the shift to cloud computing often comes with a trade-off between cost and performance. In an effort to minimize expenses, we opted for the minimum hardware configuration, which inevitably leads to performance degradation compared to on-premises setups. To address this, we should reevaluate our resource allocation and consider a more balanced approach that prioritizes both cost-efficiency and performance.

What really is being said...
"Well given that you the keeper of the finances chose to put a premium on cost over value and chose to go with minimum level resources on our hardware configuration, we will see some degradations as compared to an on-premises setup...performance like everything comes at a cost."

CIO Question: Why does it take so long to troubleshoot and diagnose performance problems when running our ERP application in the cloud?

IT Response: Cloud environments can pose challenges in terms of transparency and telemetry. When we encounter performance issues, our staffing decisions has us depending on external resources, often offshore or cloud provider support, which can be less committed and slower to respond. The lack of direct control over the troubleshooting process can lead to delays and customer dissatisfaction. To mitigate this, we should consider investing in enhanced monitoring tools and in-house expertise to regain control over diagnostics and response times.

In other words...
"Well given that going with cloud takes away a significant amount of transparency and visibility of telemetry of system diagnostics we are forced to work with partner resources (typically offshore and therefore not 100% committed to the organization) and/or work with the cloud provider where they can control the messaging of what they respond with, a typical scenario involves submitting a ticket, waiting for a scripted response, having several follow-ups to further convince there is a problem, meanwhile the clock keeps ticking with customer complaints, disruption to operations, and disgruntled end users."

CIO Question: Why don't we have the same level of telemetry and visibility into performance problems as we did with an on-premises solution?

IT Response: Cloud providers often limit visibility to encourage customers to purchase more resources. This can be frustrating for our team and hinder our ability to diagnose and resolve issues promptly. To address this, we should negotiate for better access to telemetry data and performance metrics in our service level agreements (SLAs). We must also invest in third-party monitoring solutions to gain more control over our cloud infrastructure.

Let me shoot it to you straight...
"Well given that you the keeper of the finances chose to put a premium on cost over value and chose to go with minimum level resources on our hardware configuration, we will see some degradations as compared to an on-premises setup."

CIO Question: Why does it take significantly longer to complete projects now that we have our ERP application in the cloud?

IT Response: The decision to outsource or offshore support to vendors has introduced challenges, including a lack of commitment and availability of resources. This approach often requires more resources and micromanagement. The focus on cost over value has led to inefficiencies and extended project timelines. To rectify this, we should consider reevaluating our staffing strategies. Investing in more dedicated and in-house talent can significantly improve project efficiency and success.

Going off the record...
"Well since we decided to outsource or offshore most of our support to vendors who simply don't have our organizations best interest in mind as part of the broken ERP support model, we are now seeing that it takes approximately 4 offshore resources to come remotely close to the productivity of a full-time fully committed employee, so there lies the problem...once again your focus on cost over value, and naively buying into the nefarious slippery partner sales speeches has us relying on resources that have limited availability, language translation challenges, and ultimately need heavy micro-management and extraneous documentation for any chance to get the solution right the first time."

CIO Question: Why is it that our partner resources take longer to complete projects and require so much micromanagement?

IT Response: It's a straightforward issue - our partner resources often overpromise and misrepresent to merely secure a contract, leading to a misalignment between their capabilities and what they can deliver. Consequently, we end up investing significant oversight in their on-the-job training and experience, resulting in rework and project delays. To address this, we should ensure a more rigorous partner selection process and consider long-term relationships with partners who share our commitment to project success.

Full disclosure...
"Plain and simple, they misrepresent their capabilities to fulfill the primary objective to get a signed contract, meanwhile behind the scenes there is significant on-the-job training going on which requires significant oversight on our part resulting in rework and project delays."

CIO Question: Why do we have so much turnover in the areas of IT, specifically software developers and solution architects?

IT Response: The high turnover in IT, particularly among software developers and solution architects, is primarily due to our lean approach and the overemphasis on cost reduction rather than value. We've leaned heavily on Commercial Off-The-Shelf (COTS) applications and vendor support, to the extent that experienced professionals with the desired skills and talents do not wish to be confined to managing vendors or overseeing inexperienced and incompetent resources. This lack of fulfilling work leads to attrition, which ultimately affects our project quality and timelines. To mitigate this, we should reevaluate our staffing strategy, focusing on in-house expertise and providing opportunities for these professionals to work on meaningful, value-driven projects.

Sometimes the truth hurts...
"Primarily because we are so lean because once again we focus too much attention on cost instead of value, we have gone with so much COTS applications and the associated vendor support that it has gotten to the point where are vendor partners have partners...experienced professionals with the talent you seek, do not wish to be relegated to just managing vendors and sitting back watching inexperienced and lethargic resources deliver poorly architected solutions, there is simply no passion and energy in being a bystander...talent dies when it is not used, thus we choose to go where our talent is recognized and put to use."


The challenges faced by IT leadership in the context of cloud computing and staffing strategies are multi-faceted. While cost management is important, it should not come at the expense of performance, efficiency, and staff retention. Balancing cost considerations with the need for value-driven solutions, investing in monitoring and diagnostic tools, and reevaluating staffing strategies to retain experienced talent are critical steps in overcoming these challenges. By addressing these concerns, organizations can ensure the successful adoption of cloud computing and maintain a motivated and skilled IT workforce.

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