Cloud computing trend
Today cloud computing usage is increasing fast with many companies adapt it as the new way to reduce Information Technology (IT) cost. According to a new industry survey, it also impacts the outsourcing industry sector with 25-32% of outsourcing deals in 2013-2014 relating to moving to the cloud. Cloud computing refers to the storing, accessing data and programs through a network (i.e.., The internet), instead of buying infrastructure such as servers and hard drives, companies can rent them through an outsourcing service providers. The use of cloud helps reducing capital costs of installing computers, services and other machinery equipments.
According to the survey, many customers are realizing the benefits of cloud computing and are ready to adapting this technology but many IT services providers are not ready since their business model is still “stuck” in providing cheap labors in software testing and coding. Only large outsourcing companies have capability to take over IT works with cloud capabilities. The industry survey of 3,000 companies worldwide found that cloud computing, mobile applications, internet of things, computing security, and big data analytics have the highest demand in outsourcing business with market value over $150 billion dollars. A software executive explained: “We noticed high demand in cloud computing in many outsourcing contracts but less demand for software testing and coding. When companies move their IT works to the cloud, they do not need to develop software on their own but let everything provide by the cloud service vendors. This is a unique opportunity for outsourcing companies to capture larger share of the market but it favors large companies because they have the capital to invest in infrastructures, networks, and skilled workers to take over more IT works. Smaller companies who are not moving quickly enough will be eliminated. In this competitive market, if IT services providers are not making serious investments in cloud computing, they are making a big mistake.”
The issue is not just investing in infrastructures but also in develop skilled IT personnel. Due to the shortage of skilled IT workers all over the world, it is difficult to develop enough IT workers to take over IT works. As more companies are moving to the cloud, there will be a huge need for IT system managers who can manage software as a service (i.e., manage, build or move workloads to Cloud); monitor IT systems via a help-desk infrastructure services; control software and system updates as well as manage network and computer security. These areas require skills in IT system management that are not being taught in regular computer science program.
Basically, cloud computing is a new business that is increasing fast and many companies are looking to outsource their IT works to service companies. The transition to the cloud can be a strategic differentiator in the way companies compete. In the business world that is driven by technology, the faster companies can adopt new technology, the better they can gain advantage and gaining market share.
Sources
- Blogs of Prof. John Vu, Carnegie Mellon University
