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That said, the move itself must not incur additional cost, Tanner warned. “You should be doing cloud from a [cash] net neutral position, if not less,” he explained. “IT directors do not want to risk the wrath of the board by asking for more money for cloud computing.”

Transformation does not stop when the migration is complete, he added. Buying organisations should require that their supplier improves the service continuously, and Tanner recommended making explicit provision in the service level agreement to ensure that this is the case.

Change management

Managing change in any services engagement is difficult yet vital. Mike Hill of IT advisory group Itica Consulting, told delegates that among other key questions, buying organisation must be clear on how they can make changes to a service before any contract is signed.

Hill warned that the pay-per-use models offered by cloud computing could in time turn out to be a fool's paradise if moving from one provider to another proves too difficult or too expensive. “You've got to make sure that you're able to get out,” he said. “We've heard a lot about how easy it's going to be with cloud, but that remains to be seen.”

During his presentation, Hill highlighted other potential pitfalls of the cloud model such as overspend, poor return on investment and a perverse balance of power between customer and supplier. In addressing each of these problems though, Hill proposed the same solution – good governance by the customer. More specifically, he recommended mapping out who is responsible within the business for dealing with an issue should it arise and its precise path for resolution.

“If there's one thing you need to get right, it's governance,” he explained. “That will help you with any problems. If you're overspending or the service isn't right, as long as you've got the right governance in place, you'll be able to get yourself through it.”

The event was characterised by calls for careful consideration when it comes to cloud computing. But Mark Seeman, product strategy and development director at IT service provider Outsourcery, concluded the day with a reminder of its potential.

“[Cloud] gives small and medium-sized businesses the capabilities of big businesses,” he said. “Those services where cloud is particularly applicable are the ones that make it possible for smaller businesses to deploy these on premise due to cost, complexity of management and available skill sets.”