Cloud Services for Business
Some Fortune 500 companies are using the Internet to tap into everything from extra server space to software that helps with the management of customer relationships. The world-wide market for cloud services is expected to reach 149 billion up from 58 billion in recent years. There are ways to save IT costs with cloud services for business.
Cloud services for business = Less rowing… more steering
A noticeable uptake in the adoption of cloud computing by large businesses around the world is occurring. Big brands such as Cisco, Dell, Panasonic, Motorola, for example, are increasing their usage of cloud based deployment.
The most popular cloud services for business
When we look at the cloud, we look at the three legs of a stool. It is predicted that within the next 5 years, corporations world-wide will spend 112 billion dollars cumulatively on one of the three cloud computing components.
There are three components to the cloud:
- Applications as a service (SAS) – Pre-packaged, pre-built complete functionality solutions bought from service providers. Rather than opting to build these capabilities internally, the tasks are outsourced. These include providers such as SalesForce.com and Microsoft.
- Platform as a service – Service in which the provider delivers everything but the application. The option of putting your own application onto the platform is available.
- Infrastructure as a service – Decompose the platform into the enabling components of technology: storage, compute, middle ware. This includes cloud hosting from providers such as Rackspace and Amazon.
All three elements of the cloud will see very healthy adoption and growth in the foreseeable years.
Why is cloud services for business increasing at such a rapid rate?
Savings and increased efficiency.
Big names in the industry who, just due to their sheer scale, are finding it hard to change the most and redirect their huge ocean liners that they operate are seeing the most growth in this area. The scenario in the history of technology is such that the shift to cloud computing can be compared to when businesses started using PCs. The Internet is the catalyst for the shift to cloud computing. The new technology is seen as the next stage in the IT industry. Companies need be paying attention to this large shift. This is a very significant trend in the marketplace. Therefore, companies are scrambling to get on board in order to tap into market demand. Companies are trying to evolve, adapt and adjust to the next stage of evolution within the industry.
What reasons do companies provide for NOT moving to the cloud?
This is a very large shift that is gaining momentum. However, the reality is that these ideas are the minority (not the majority). Some companies choose, instead, to sit on the sidelines. But then again, website hosting isn’t something that you can just do without as a small or medium sized business owner. Large businesses have IT departments. But do you really want to incur the large expense? It’s better, easier, and cheaper to choose a website hosting firm. And if you want your website to stand out, choose green hosting for your site and announce that your business has gone green.
Questions and concerns about the cloud:
Some CEO’s prefer to stand on the sidelines because of the “newness” of the cloud.
How will IT departments change?
The growing recognition that the cloud is the platform. Functionality is going to come to businesses from the outside (from the service provider) is changing IT departments. Due to the movement toward the cloud, companies do not need as many internal IT people. Traditionally, IT people are on staff to write code, manage code, or manage the infrastructure to support internal code.
Less rowing… and more steering
Companies will realize that functional innovation is coming from the external world. Companies will be taking business requirements from executives, end-users and clients. Then, these companies will map these requirements with the service providers. Managing service providers will cause the shift away from technical skills toward management skills. The need for more skills and expertise in managing service providers will increase. Additionally, high-level technical skills from people skilled in cloud services is on the rise.
Management skills as companies shift to the cloud
Finally, this will be a gradual change over the next few years. This shift is a movement away from technical skills towards management skills. Big businesses should not anticipate that this will happen overnight. However, we are seeing the externalization of IT and the cloud is the next generation of that idea.