Industry News Desk
Cloud Computing - Game Changing?
Cloud computing makes sense and slowly this delivery model will end up disrupting traditional delivery mode
By: Raj Sheelvant
Aug. 2, 2008 01:35 AM
Raj Sheelvant's IT Strategy Blog
While Large Organizations are slow to adopt SaaS model, SMB (Small and Midsize Businesses) are increasingly using ‘cloud’ computing as the perception of risk has changed according to this article ‘Warily, Small Businesses Look To Cloud Computing’. Also, most small-business owners lack the time and expertise to develop and maintain a dynamic and attractive Web presence, their risk tolerance is higher. With ‘cloud’ computing, SMB gets access to the Enterprise Application with minimal upfront investment. At the same time cloud computing providers get an opportunity to continuously work to perfect this unique delivery model. This symbiotic relation between SBM and Cloud computing providers will make this emerging technology more pervasive in the near future. This in turn will reduce risk and will attract the large organizations to ‘cloud computing’ environment.
So, in the long run, most of the companies (large, mid size or small) do not want to have the overhead cost associated with running a large IT department that is solely involved in sustaining existing enterprise application. The need to upgrade (both hardware and software) as the half life of the technology keeps lowering is going to force the companies to look at cloud computing seriously. The ability to outsource ‘commoditized’ IT infrastructure and contextual IT applications (like payroll, HR etc.) will enable the companies to focus on their core competency. More importantly, the IT department within the organization will be able to focus on aligning IT to the business needs. IT can focus on building applications that will create/sustain companies the core competency. So, cloud computing makes sense and slowly this delivery model will end up disrupting traditional delivery model.
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