How Cloud has affected the Centralization vs Decentralization of IT

  • Lowered expenses and increased purchasing power — the centralized environment will always provide a business with more buying power at a lower cost by combining all of the needs of the business into a centralized buying pool.
  • Improved productivity for IT staff — IT teams are like any other team, they thrive with collaboration and mutual understanding and respect for each other’s skillsets. It also makes installations and technical resolution(s) easier as you’re addressing a centralized resource.
  • Enterprise-wide information dissemination — the centralized organization will build its network from the center out — LOBs will typically share the same networked resources — such as an ERP or CRM. This avoids the dangers of siloed information that could be critical to another LOB, but without access, there’s no visibility into the information that is available.
  • The ability to tailor IT selection and configuration. When individual departments have IT decision-making power, they can choose and configure IT resources based on their own specific needs. For example, each department has its own servers optimized to run its required applications.
  • More fail-safes and organizational redundancy. Decentralizing makes servers and applications more resilient — and it can do the same for IT networks, too. If each department maintains its own server, one can function as a backup server in case another server fails. (Of course, this type of redundancy would need to be properly configured in advance.)
  • Respond faster to new IT trends. Since departments in decentralized organizations can make independent decisions, it’s easier for them to take advantage of new technology in the cloud.

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