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What is Cloud computing replacing

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The emergence of cloud computing has turned around a lot of things in the core structure of an IT company. The full impact overall is yet to be completely felt. More and more companies, IT dependent sectors, Government organizations and almost every other field that has an IT department is now actively trying to move to cloud if not already moved to cloud.

IT expenditure trend

The more public cloud services are adapted and sold, the more traditional software and hardware vendors are shrinking. Even though the change started a long time ago, it is getting evident only recently. A global technology outlook, Barclays, has come to the same conclusion that for every $1 that is spent on cloud infrastructure; several dollars are exiting from IT end-markets. This in a way effects global IT expenditure.

451 Group, a research firm mentions that IaaS revenue for cloud providers like AWS (Amazon Web Services) will go from an annual rate of 57% to reach $10.2 billion. A lot of experts predict that Enterprise technology powerhouses could see a low in revenues because of cloud computing take over.

Even though companies such as these are already working with the cloud, they do so at the expense of traditional businesses that they were known for. In certain cases, for $1 of cloud revenue they are able to book, they may end up losing $2 in their traditional software and hardware businesses.

What cloud is hitting at are:

  1. Corporate data centers
  2. Expensive software upgrades
  3. Pricey computer hardware

Companies that exist only by the traditional enterprise software development and systems integration will see their world change. System integrators also usually struggle with on premises integration for on premises use since their clients find cloud architectures more reliable. As long as traditional IT businesses shift their offerings and skills in good time, they will not need to see losses. This is why there is a spike in demand for trained cloud engineers.

What remains?

What will continue to remain are the bare basics and operational functions – the fundamentals of design, architecture, security, operation, management and assurance. These are the same – whether one uses traditional localized data centers or public cloud services. The sourcing and the mechanics certainly change but a lot of operations remain, in a way that the rest of the work force may not even feel the silent but significant shift that their company just went through. IT job aspirants can certainly cash in on this by getting industry oriented cloud computing training. Cloud computing certainly is a great career choice for the present and the future!


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