This week I am at CA World 2011 with many of my colleagues. One of the prominent discussion topics is cloud computing and how we help customers transform their business using the cloud! Discussions to date have identified that the transformation process is underway to enhance agility while better managing capital expenditure. Organizations aim to use cloud computing to better leverage their scare resources, deliver value faster and better manage capital requirements.

The challenge is there are so many choices and areas where cloud computing can help meet those goals that without effective Project and Portfolio Management (PPM) processes, how can businesses ensure they are focusing on the correct things? For instance the use of effective PPM processes allows organizations to determine the correct balance between multiple initiatives such as server consolidation; number of data centers to retain; which services to focus on delivery through the cloud, etc. It does this with effective talent management and while balancing the projected cost savings and benchmarking performance on an ongoing basis in real-time. Using PPM processes helps organizations manage the entire transformation at every key stage, including:

• Definition of the strategy and goals both in business and IT terms
• Mapping the current and target IT state post-transformation
• Establishing a transition plan and identifying the resources and costs involved
• Managing the execution of transformation projects
• Monitoring and reviewing progress both at a project and program level

In short the use of an effective PPM solution will empower CIOs need to make informed portfolio decisions on which services to keep in-house and which to outsource. IT will also allow the organization to balance technology driven transformation initiatives, e.g. cloud computing and virtualization, that facilitate reduced costs and cycle times with business driven requirements such as social media and mobility.

This decision-making process is an extension of PPM's support for balancing innovation and ensuring focus on strategic initiatives - the secret to agility and value creation - while optimizing existing assets and ensuring faster adoption of the right new technologies and delivery of the right IT services. An objective we would all like to achieve!

Tomorrow, some comments on how to retain visibility and control in the transformation!

For more information on CA World visit the website.