Cloud computing set to be the ultimate recession technology

1 min read

Businesses are increasingly likely to adopt cloud computing services as the recession bites, according to a study by international telecoms consultancy BroadGroup.

The organisation finds that companies are increasingly “desperate to seize on technologies that will accelerate service delivery, reduce costs and offer competitive advantage”. It also suggests that the cost arguments for moving to cloud computing are becoming more measurable and concrete. “Big-iron providers of IT products and services are beginning to identify cloud as a priority, and the surge in consumer adoption of cloud computing through the use of Yahoo! Mail, Flickr and Google Docs, collectively demonstrate … the progress of cloud,” says the firm. In fact, BroadGroup sees cloud computing as the ultimate recession technology. “For companies doing development, it cuts costs while also making it possible to bring new products and services to market quickly. “For companies that are considering deploying enterprise software, it can offer potential savings of up to 25% of the total cost. And for Internet service providers and data centres, cloud raises the prospect of both huge new markets and also significant new competitors.” Additionally, its report suggests that uptake of cloud will continue to change as new players emerge and product developments, such as VMWare’s Virtual Datacenter Operating System (VDC-OS), are deployed. “Much remains to be played out, but in the meantime Google App, for example, and Amazon Web Services are standout products,” it suggests.