Emphasis Shifts in Cloud Computing Debate
May 9, 2012
Discussion of cloud computing is likely to move away from whether to adopt it to questions how to management it. That’s the view of Michael Vizard, writing for IT Business Edge. Mr Vizard believes that the adoption debate is largely over, and this hypothesis is borne out by recent IDC research that predicts 14 million new jobs in this sector over the next three years.
Cloud Job Expansion for Midsized Businesses
Small and midsize businesses will see their share of this expansion and will account for about half of the new jobs. Since their size makes them able to respond easily to technological and business changes, these businesses are quickly turning to cloud solutions, something many large businesses have been slower to do. In the main, small and midsized businesses are less constrained by the need to support legacy systems…
There are very few sectors that will remain untouched by the widespread adoption of the cloud, according to the Vancouver Sun report on the IDC findings. Securities and investment services, insurance, professional services, education, manufacturing and retail are generally ahead of the curve when it comes to using cloud based technology. However, sectors more affected by regulation, such as the banking and healthcare sectors and traditional late adopters, such as the utilities sector, may take longer to make the shift.
Managing and Regulating Cloud Services
In The Next Era of Cloud Computing in IT Business Edge, Mr Vizard suggests that a key issue will be how to govern and manage cloud services while retaining the agility that keeps them useful. With the IDC research showing a boom in cloud innovation (and the jobs that go with it) in China, India, and emerging markets, this becomes crucial. Recently, the Global Cloud Computing Scorecard suggested that many countries lack the across-the-board policy framework to support widespread adoption of cloud business. In particular, policies governing privacy and security are not always robust. This lack of alignment could hinder the very productivity and economic benefits that it should enhance.
While in the past, the cloud has been seen as an IT issue, Mr. Vizard believes that this will change as it moves to the point where it changes the way industries work. Instead, he says, the challenge will be to harness the responsiveness of the cloud while keeping IT operating costs under control. This is not a like-for-like equation, as businesses that save on IT costs by moving to the cloud have the potential to increase their capacity to do business worldwide and use some of the budget previously allocated to IT for business investment.
Is Mr. Vizard correct in his assessment? Only in part. Some of the larger midsize businesses may be affected by the same legacy issues as their larger counterparts, which means they are less likely to rush to the cloud. They run the risk of being on the losing side in the cloud competition.
However, those who are already used to a lean, responsive business environment are poised to get the rewards of low monthly costs, reduced labor costs, easy deployment, and a larger operating budget. The resultant improvements in customer service can only enhance growth and profit potential for midsize businesses.