Tuesday, January 18, 2011

Cloud Computing Primed For Expansion

In 2010, HfS Research and the London School of Economics surveyed over 1000 organizations about their outlook on Cloud Computing in the business software sphere. The results clearly show that top level executives are buying into the concept of the cloud in record numbers. What’s interesting is that CEOs and COOs appear to be even more excited about this technology than CIOs are. They view the benefits of outsourcing portions of their IT infrastructure management and tapping into the Best of Breed applications available as the result of low-cost software development as key for promoting more cost-effective business practices.

This doesn’t mean IT executives are hesitant about adopting cloud-based software. In fact, according the HfS survey results, 1 out of 3 CIOs anticipate using a significant portion of their IT budget on cloud based business services in the coming year. Mid level IT managers are a little less eager to see their organizations make the switch. This might be because the need for employers to keep managers on staff to supervise low level IT personnel will decrease as more day-to-day maintenance functions are outsourced to cloud providers. Organizations may be looking to pare down their IT staff to a few good strategic planners and savvy trouble shooters. This, in turn, may make things easier for HR by reducing the demand for a steady stream of IT hires (a field where demand often outstrips availability of talent).

What Do Leaders Find Attractive about Cloud Services?

Both general business executives and CIOs are attracted to the cloud for many reasons.  However, interest from non-IT executives is particularly high when it comes to the following benefits:

• Faster implementation of mission critical, best in class software applications that would have been unavailable or too difficult to access using a legacy system

• Less reliance on IT to create custom applications that support business goals

• Money spent on IT actually being used to improve business processes throughout the organization

Emerald Software Group has been keeping up with the latest trend by making applications such as Universal Onboarding available on one of the industry’s leading cloud platforms. You can read more about the benefits of the cloud approach to onboarding over at Chuck’s blog.

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