Barclays envisions that greater corporate use of cloud computing services, will drag down revenue for software suppliers and information technology hardware according to its 2014 global technology Outlook. This study reveals that the cloud will have a deflationary impact and that for every single dollar spent on cloud infrastructure, means that markets in other areas will be reduced by several more dollars. These changes should persist through 2014 and 2015.
“2014 could represent a more disruptive phase for the cloud, which is not just for the Googles, Facebooks and Amazons anymore”
According to the study, the cloud will enable businesses to be significantly efficient and be able to deploy a more streamlined process. Hardware and server players like EMC and IBM will be particularly challenged, while system integrators like Accenture may also struggle with the need for less on-premise integration, as their customers rely more on cloud architectures.
From the report, it is obvious that there will be clear winners who adopt cloud technology as well as losers who hold on to ancient proprietary systems. The report coincides with IT as a service provider (ITaaS) Proxios releasing its Top Five Benefits of Cloud Computing, which details how firms are benefiting from the cloud going forward into 2014.
1. Decreased Total Cost of Ownership
With cloud computing, organizations don’t need to purchase expensive servers or systems and maintain them in-house. Plus, IT no longer needs to focus on the upkeep of in-house systems since the service provider handles maintenance issues, upgrades, patches and more.
2. Minimal IT Support
With a hosted cloud computing model, the service provider handles any issues that may arise, eliminating the need for maintaining a costly IT staff to support the infrastructure. Organizations can easily manage their account, often through a simple Web interface.
3. Business Continuity
Cloud computing keeps a business running even if an emergency or disaster occurs, without loss of data or service. Since company data and software doesn’t need to be maintained on premise, employees can work and provide services wherever there’s an Internet connection.
Cloud communications are a highly flexible technology that can grow and expand along with a business by delivering the technology businesses need, when they need it.
5. Focus on Your Business
Businesses no longer need to worry about excessive costs, ongoing maintenance, upgrades, associated staff and complex management with cloud computing. By freeing up these and other resources, organizations can better focus on their core business.
Image credit via seagate.com
Hayden Richards is Contributor of IntelligentHQ. He specialises in finance, trading, investment, and technology, with expertise in both buy-side, sell-side. Contributing and advising various global corporations, Hayden is a thought leader, researching on global regulatory subjects, digital, social media strategies and new trends for Businesses, Capital Markets and Financial Services.
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