The Economic Impact of Cloud Computing
Grazed from IT Business Edge. Author: Michael Vizard.
As the presidential campaign gets into full swing in advance of the November election, there’s obviously a lot of focus on the employment outlook. While the accuracy of the numbers that the Department of Labor posts are dubious at best, there’s no doubt that the employment picture could be better. A lot of factors go into determining what the employment picture actually winds up being. But one factor that a lot of folks don’t seem to be appreciating is the role IT and cloud computing are about to play in reshaping in the economy.
While most of the employment chatter these days about cloud computing centers around the impact this shift will have on people working inside IT, the reality is that the impact on people working outside of IT is going to be exponentially greater. Once a company starts moving IT into a third-party data center, it’s only a matter of time before entire business processes start heading in that same direction. Once business process outsourcing starts to occur in volume, it becomes apparent pretty quickly that one smaller group of people in the cloud can automate a process or task that used to be performed by 10 times as many people working in 10 different companies. As that trend continues, it’s not like those jobs moved somewhere and will come back one day; they just simply disappeared into the cloud…


The database category hasn’t been all that exciting over the past 20 years, with market leaders Oracle, IBM, Microsoft, Sybase (now SAP trading off incremental updates every year or so. But that period of stasis ended with the advent of cloud computing, open source software and big data — a perfect storm that reinvigorated the field.