The quote came from an interview with Silicon.com during this years CloudForce event in London and, overlooking my indignation at being called “veteran CIO”, I stand by it 100% .

The undeniable fact is that in this time of budget pressures, many companies are looking to cut their costs by moving to the cloud and that may well be possible but only if you avoid the inevitable expansion of activity that will come as a result of this move. You see once you create new capacity, demand will always grow to fill it – its as sure as eggs are eggs (though I never quite understood what that phrase actually means).

If you don’t believe me then its worth considering the observation that  “Technological progress that increases the efficiency with which a resource is used tend to increase the consumption of that resource”. Ironically its not a quotation from some Cloud guru but is actually called “Jevons paradox”, first postulated by William Stanley Jevons back in 1865. As I blogged earlier – nothing changes, everything stays the same – pretty much.

Anyway here’s an extract from the Silicon interview

Veteran IT chief Ian Cohen has other ideas – telling silicon.com that any company looking at moving to cloud computing purely as a way of saving money should “forget it”.

Cohen is speaking from experience. As group CIO of Jardine Lloyd Thompson (JLT) he is helping the global risk management and insurance broker to make greater use of cloud-based services, such as Salesforce.com’s CRM platform.

When businesses shift to cloud services, the oft-talked-about savings won’t last, Cohen said, as any reduction in cost or overheads is quickly swallowed up by fresh demand for IT services. ”If you go into cloud thinking you will save money, forget it. What invariably happens is that you create more efficiency and headroom. However, demand that previously could not be met can now be enacted and thus your activities simply increase to fill the available resources – be that time, people or infrastructure,” he told silicon.com at Salesforce’s recent Cloudforce conference in London.

“People will be using your systems to do more. That’s the killer sell as to why people should be looking at cloud: the ability to flex your enterprise into a more extensible model at light speed.”

Cohen also cautioned that shifting operations to the cloud is not straightforward for any business – there will always be resistance and challenges, particularly for a heavily regulated business such as JLT.

“It’s early days. We are working around some of the issues with some of the naysayers and a lot of it is around security and audit, all the usual cloud stuff,” Cohen said. “A lot of concerns are still around data location, traceability and auditability. It’s still a challenge if an auditor comes in and simply asks, ‘Where is the data? Let me see it’.

“We are a regulated business so we have to be more prudent than some other organisations but that doesn’t mean we can ignore cloud technologies and the opportunities they offer.”

“I get somewhat disturbed by the term “cloud.” All the marketing and vendor hype surrounding it is confusing what should be a very important debate about the underpinning technologies and what they can do for your business.

All good CIOs know that they have to be, first and foremost, business leaders. But we are business leaders who have an area of expertise, and we must be able to apply that expertise — which is in how technology enables our businesses. That blend of business and technology acumen is now more important than ever.

The technology that underpins what vendors are calling “cloud computing” is rapidly maturing and does offer some interesting new opportunities, but I believe it’s important not to get carried away here.

It’s not a paradigm shift. It’s not a whole new world. It’s just change. It’s the same kind of change as when we went from the abacus to the mainframe, from mainframe to client/server, and so on. We live in a change industry. Change is what we’re all about, so there’s nothing out of the ordinary in that respect.

I am, however — as we all should be in these tough times — interested in the capex/opex shift that comes from utilizing these technologies, because I think it represents the possibility for a fundamental change to some of our business models.

I am also interested in the potential it has for removing some of the entry barriers to new markets that might otherwise have had a high capital-intensive set-up. And I am very interested in how the technologies will allow us to blend parts of our own infrastructure with the infrastructures of specific partners and public services.

But rather than talking about types of “cloud” — public, private, hybrid, whatever — we should be asking: Do these new models fit with our current sourcing decisions, be they hosting or hosted? And the answer is, in many cases: They absolutely do.

As CIOs — and increasingly this is a truly hybrid role — we need to focus the debate around the economics of our businesses and the appropriateness of the technologies to meet the strategic intent of our companies.

But we must not get wrapped up in the marketing spin and hype. We must focus on the practical aspects. CIOs and the rest of the technology profession have had a hard enough time acquiring sufficient language to engage in business discussions with business customers.

And now our profession — particularly the supply side — comes along and creates some nonsense term for what is actually, underneath, a very valuable and very business-critical technology.

I am worried that the reality of cloud can’t match the hype because it has been hyped out of all proportion. Also, just because it’s “the cloud” does not mean the basic disciplines of technology operations or sourcing can be ignored — they can’t.

So let’s focus on what the technology can do. And, like all new technologies — although in this case the concept is not that new — you need to dip your toe in the water and try it.”

• Follow Ian Cohen on Twitter: @coe62

So sang Robbie Williams in his introspective stadium anthem – Strong.

It’s an interesting thought – do you actually know your own strengths and weaknesses or, more importantly, those of the people you lead. I choose these words carefully because I don’t necessarily mean what people are “good” or “bad” at because that can often be very different.

Think about that for a second. Isn’t there something that you do – that people think you’re “good at” – but frankly if you never did that activity again it wouldn’t be a moment too soon. What would you call that ?? Well, many who believe in strengths development would actually call that a weakness. Any activity that leaves you feeling depleted or drained is a weakness. Conversely an activity that enthuses you, invigorates you – one that when your involved in it time just flys by … that would be a strength

Why the distinction – well for years we’ve all been a bit remedial. We appraise (and actuality also educate) people on the false premise that we are there to fix what we see as their weaknesses (or what’s bad) in the hope we’ll develop strengths or improve performance. The problem is that this rarely works.

Jeez, have you had a good appraisal recently ?? More often than not its 5 minutes of discussing what went well and then 55 minutes of “identifying areas of development”. Oh please – by that very action you’re characterising someone by what they’re not rather than focusing on making more of what they already are. That doesn’t mean you can ignore weaknesses, particularly when they impact ones strengths, but it’s all about were you focus to get the best outcome for everyone involved. Indeed, the research shows people make their greatest leaps in performance when building on their strengths… so why do som many still focus on the complete opposite. We spend our time trying to turn bad into good. Its nonsense. If you invert bad – you get ‘NOT BAD’ which is very different to good great or excellent.

And more than ever in this profession we call technology, we need ‘excellent’ !! That’s excellent engagement and communication skills when working with our colleagues, our staff and most of all our customers – ‘not bad’ is not enough. So we need to get better at identifying people’s strengths and getting them to do more with them.

In the coming years, though many would say “right now” as well, we need a new generation of enthusiastic technology leaders who can engage in new dialogues, articulate new possibilities and listen for the new opportunities in a whole new way. We need them to tell stories and paint pictures about how the new disruptive forces of technology can transform business. These wont be the techie, bits and bytes, propeller head conversations of the past and they will need people with a whole new vocabulary; people for whom driving these conversations into positive and tangible outcomes will be their most dominant strength. The power of the relationship will be the dominant factor in creating the solution, not the technology.

So where are these people ? Do you have them ? and if not, then where are you going to find them ? I wish I had the answer – I don’t – but I can give you a clue about what to look out for…. it might just have something to do with people’s strengths.

http://www.theonion.com/video_embed/?id=17693
New Apple Friend Bar Gives Customers Someone To Talk At About Mac Products

The interview found its way into a report that is available here >>> EIU Article

Interestingly (or not – depending on your views on these things) it morphed into a panel discussion that is now up on their website. The webcast was set out to “….discuss how CIOs are driving innovation in their organisations today, amidst continued budget stringency and in an uncertain growth environment.

• How will continued cost discipline affect IT-led innovation?
• Who are now the CIO’s most important and effective allies as champions of innovation?
• Has the recession weakened employees’ and managers’ resistance to change?
• How central are social media and cloud computing to innovation initiatives today?

OK it doesn’t quite have the cut and thrust of BBC Question Time but you can see how we all got on

… or click here for the webcast and content  >>>  EIU Webcast

Enjoy and, as usual, please feel free to post comments, retweet or whatever.

The starting point, says Jardine Lloyd Thompson CIO Ian Cohen, is to understand your personal attributes (or strengths)  and those of your team rather than focussing on potential weaknesses and trying to fix those. “You cant ignore weaknesses but an outstanding leader will focus on their strengths – and those within their teams – and look to exploit them. For example , they will seek out their natural communicators – the ones who have a talent (or strength) for building great relationships – and orientate them to towards their customers so that thay can do even more with that talent. Effective dialog, in business speak (not techno babble), is your currency and you need people who have this as their strength.

“We spend way too much time trying to turn people into something they are not and fix their weaknesses,” he says. “It’s complete nonsense to think that fixing something bad will create something great. If you take ‘bad’ and just invert it – you get ‘not bad’, which is light years away from ‘great’. Find the activities that strengthen you personally, and the people you lead, and look to do those activities more often.”

When it comes to personal capabilities, Cohen is well aware of his own strengths. He says he “happens to be good at technology” because of the chronology of his career and an employment path that has included senior IT positions at media giants Associated Newspapers, Financial Times and Lloyds TSB.

Technological nuts and bolts
However, Cohen is also open enough to recognise that an aptitude for IT is not necessarily his most important individual asset. “For me, focussing on the nuts and bolts of technology doesn’t make the working day whiz by. Sure I know how stuff works and increasingly the hybrid CIO is going to have to stay abreast of how things work (our customers are becoming far more tech savvy), but it’s not exciting emotionally,” he says.

“My real strength – the activity that strengthens me – is creating an environment where bright people can do great stuff. I’m a story teller; painting pictures about what might be possible through the exploitation of existing and new technologies. That’s when time races by and I’m at my most animated and enthused.”

That sense of creation is something Cohen believes is a core feature of an outstanding CIO. Top technology chiefs, he suggests, will recognise how different members of the team contribute to the organisational whole: “You need to orient people, and the business, around individual strengths. You need to know how to combine people to create more effective teams and to develop next-generation leaders.”

If Cohen is right, helping to make the most of your – and your team’s assets – is crucial for the successful CIO. But what does the boss think? What type of skills does the CEO want from his or her CIO, and how can an IT chief develop the leadership skills that constitute an outstanding executive?

Customer awareness and project skills
For Vin Murria, CEO of Advanced Computer Software Group, strong customer awareness and an ability to deliver projects are of paramount importance.

She is an experienced business leader, having previously been CEO of CSG and chief operating officer at Kewill. Drawing on her experiences, she suggests the CIO’s job is really no different to the CEO’s.

“We’re both here to help deliver benefits to our customers. It’s just that, in most cases, the CIO is great with technology and the CEO is more attuned to the business,” says Murria. Sceptics might suggest that the second point is the difference.

Too many CIOs lack ofbusiness acumen. But it does not have to be this way, suggests Murria – and a new cadre of business-savvy IT executives are coming through.

“It’s not so much the technology bent, it’s the commercial recognition that helps them prove why it is worth investing in new IT,” she says.

Development of the next generation
Like Cohen, then, Murria recognises that technical aptitude is just one tool in an outstanding CIO’s kitbag. And like Cohen, she also says a top executive will prioritise the development of the next generation: “IT has really created the foundations for its own success but you have to be constantly thinking about what you’re going to do next,” she says.

A focus on the career ladder comes naturally to recruitment specialist Tim Cook, who runs the CIO practice for Russell Reynolds Associates (RRA), a search firm with more than 300 consultants based in 40 offices around the world.

Cook receives regular briefings from CEOs about the type of CIO they are looking for. And such searches, he says, are often framed by the question: “What does outstanding look like?”

When it comes to answering the question, Cook says CEOs often frame their description in communication terms: “We want someone that’s one of us; someone who can talk about the business and be part of the business,” he says, referring to the specific language of business leaders.

Strong business communicators
CEOs do not talk about technology but they do talk about specific IT issues. Cook says UK bosses talk about how technological innovation can be used to address modern business concerns. Here, they might talk about collaboration or the way technology can be used to communicate with customers across multiple channels.

“CEOs are looking for people with strong communication skills. They’re looking for negotiation and the ability to push back. It’s difficult to learn later on in life. Get on top early and you’ll have more chance to move your career on,” he says.

“Business executives won’t care about the specifics of technology. CIOs need to frame the business case in terms of profit and loss. And talking in terms of business outcomes will clearly be helpful. CIOs need to talk the language of business and some are now making that transition.”