Cloud Computing: The Third Wave

We are at the edge of the third wave of Information Technology (IT). Following the advent of the the Personal Computer and the Internet, Cloud Computing is going to be the next great disruption of business enterprise. The term refers to the use of physically-remote computers, accessed through the Internet, for IT functions. it can refer to the most basic "utility" functions such as storage, to software programs, eg virus protection, to processes, like payroll, to full services, like building custom applications. It is more than just outsourcing to save costs. It requires a top-down assessment of business processes, such as logistical channels (think overseas manufacturing), distribution or marketing. These are strategic issues for any company that require input from the entire management team. It changes the IT department to the "Business Innovation" department. It is going to be an essential competitive tool for small to medium-sized businesses.
Consider this story told by Honorio Padron of Hackett Group, a process improvement group. He tells of a small drug company that had to compete with the multi-billion dollar majors. It did this by using cloud resources to develop a smartphone application that allowed doctors to look up the drugs they prescribed online using the company's own informational database. By leveraging cloud resources, the company rolled out the app in weeks, without even having to develop its own IT capability, at 10-20% of the in-house cost. Being closer to the doctors is good for their business.
For your generation, the cloud will represent a natural evolution of forces you have already adopted in your personal lives: anyone can connect to any information with any device. Social media sites combined with personal mobile devices on the job will blur the lines between personal and business. Ultimately, business is about connecting people and this technology is just the means.
It is hard to predict the future winners and losers of this. Large companies with powerful IT departments, may be too slow in adaptability. Will growth in heavy data generators like law firms, oil and gas exploration companies and engineering firms be based more on their ability to master their information using cloud technologies than their technical expertise? Will companies that use cloud expertise to measure their financial health outcompete their rivals who don't? Do companies that use the cloud to run their company's adminstrative infrastructure of finance, sales and marketing, be able to be concentrate on their core competencies? Yes, but like all disruptions, the outcomes won't be obvious until after the fact.
So how does one prepare for this future? You do have to be technology literate. Whether you are the most avant-guarde artiste or a civil engineer, understanding technology is essential. After that, you have to understand your business and how it creates and delivers value. This means you must have critical thinking skills. These are not trivial to come by, because they require a way of seeing yourself and the world around you with honesty. You have to always embrace the dissenter; you best learn through reconciling disagreement. You have to know yourself and the people around you. Social IQ matters. I don't know where you can reliably learn these things. I've started to lose my faith in universities. Companies certainly have the knowledge and honesty, but can't allow time for leisurely exploration of ideas. Perhaps certain post-grad programs come the closest to the ideal. Until we know, the best you can do is read the WSJ everyday and come to the Republican Club.