Your submission was sent successfully! Close

You have successfully unsubscribed! Close

Thank you for signing up for our newsletter!
In these regular emails you will find the latest updates about Ubuntu and upcoming events where you can meet our team.Close

Open cloud computing: mergers and aquisitions


on 26 September 2012

This article was last updated 8 years ago.

Welcome to our new blog series. Over the next couple of months (at least) we’re going to take a look at the open cloud and what it means for businesses like yours.

We believe there are lots of benefits to a genuine open cloud solution. And we’re going to start with a subject that always comes up in tough times: mergers and acquisitions.

Don’t be shy to let us know what you think.

Mergers and Acquisitions

In August Thomson Reuters CIO Jane Moran might have been forgiven for exhaling a sigh of relief. Although she had done the hard work in integrating the IT organisations of two global business information giants following a 2008 merger, it took four years until these expenses were finally wiped from the company results, contributing to a strong increase in earnings per share.

As the Reuters’ case proves, mergers and acquisitions give IT a chance to shine with strategic and tactical contributions. Equally, they can expose IT strategies unable to adapt. Too many businesses take IT integration lightly during mergers, according to Forrester principal analyst George Lawrie. In a 2010 report he says merging companies struggle to achieve a sought-after enterprise-wide view from mutually incompatible systems.

That’s why CIOs need to be involved in merger discussions early to avoid integration nightmares. And they should be prepared for possible takeovers even if no discussions are currently taking place. It’s just good practice.

Cloud’s Silver Lining

Part of the problem in combining IT organisations is incompatible applications managing a range of business activities including HR, finance or enterprise resources. CIOs may choose to adopt one or other of the existing incumbent systems, or migrate both to a new option. Sadly any of these approaches can result in ugly data management problems and exceed the capacity of supporting infrastructure. A question emerges: can server infrastructure be consolidated into fewer datacentres?

Cloud computing’s inherent agility may provide part of the solution. By expanding out to a public provider, applications can rapidly get the additional capacity they crave during mergers. Similarly, applications hosted on an internal cloud infrastructure can benefit from the resources freed up when redundant apps are retired.

But to get the most out of cloud computing in during merger periods, CIOs may want to consider the technology underpinning the cloud and whether it can keep up with rapidly changing business needs.

Where infrastructure, platforms or applications are hosted in the cloud, using open interfaces and common platforms can allow organisations to build solutions that integrate public clouds, private clouds and current IT systems.

Beware closed cloud standards

CIOs should be wary of proprietary standards because they may not help during period of change. Vendors use their own APIs, image formats and storage formats, which mean their clouds are fundamentally incompatible with anyone else’s. It can be complex and costly to change cloud suppliers or push workloads out to public clouds.

Businesses building their cloud infrastructure on an open platform that uses de facto industry standards such as OpenStack will find it easier to move between private cloud platforms or push workloads out to public clouds during a merger programme.

Bloomberg research shows finance available for M&As has reached its point highest since 2008. It’s another reason why CIOs should consider the benefits of open architectures during the deployment on cloud technologies, whether or not a merger is currently on the cards.

Of course, mergers and acquisitions are just one form of change. It’s just one reason why the flexibility of open cloud standards provide the agility that modern businesses require.

In our next installment we’ll take a look at the impact on time to market.

Want to receive this content direct in your inbox? Register here.

Ubuntu cloud

Ubuntu offers all the training, software infrastructure, tools, services and support you need for your public and private clouds.

Newsletter signup

Get the latest Ubuntu news and updates in your inbox.

By submitting this form, I confirm that I have read and agree to Canonical's Privacy Policy.

Related posts

VMware alternatives: discover open source

Are you looking for VMware alternatives? Think open source – the world’s leading software portfolio. Open-source software enables you to build fully...

OpenStack with Sunbeam for small-scale private cloud infrastructure

Whenever it comes to a small-scale private cloud infrastructure project roll-out, organisations usually face a serious dilemma. The implementation process...

Canonical joins the Sylva project

Canonical is proud to announce that we have joined the Sylva project of Linux Foundation Europe as a General Member. We aim to bring our open source...