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The Cloud Continues to Impact IT Realities

Many financial analysts are currently writing about the recent slump in the technology sector as key indicator companies such as Microsoft, Google, IBM and Dell, struggle to figure out the change in the way businesses are buying technology. As earnings slip, growth slows or declines, mergers and acquisitions tumble and overall venture capital for technology is down by more than 7%. Technology stocks are dragging down the overall market; many wonder if this just a temporary wrinkle in the blanket … or another new normal.

Rightly so, the acceptance of cloud computing is being listed as one of the top three factors for the current tech market slow down. Simply put, when companies move their data center into the Cloud, much less “stuff” is purchased. As this trend continues certain technology manufacturers will need to adjust and position new products and services that address Cloud Service Providers more closely, including product acquisition methods that align with CSP’s monthly revenue streams.

A Cloud Strategy Works Regardless of Current Business Condition

Companies, regardless of current business condition, are finding real and powerful benefits of the migration of their systems to a Cloud Service Provider. And as cloud computing is more often becoming the preferred method of a company’s go forward IT strategy, more and more examples of benefits are being detailed.

While each company’s business condition is as individualized as fingerprints, some general benefit observations can be made.

Business Positioning for Maintenance or Survival

  • Lower cost of operation without sacrificing performance
  • Liberation of capital to be used for a higher purpose
  • Addition of available IT resources at no additional expense

Business Positioning for Growth or Acquisition

  • Greatly increased strategic agility and flexibility
  • Reduction of risk associated with IT and growth activities
  • Refocus of resources for development of competitive advantage

Business Positioning for Sale

  • IT due diligence performer, moves to state of the art without capital expense
  • Facilitates acquiring company migration of systems into acquiring company’s environment

Business Positioning for Closure

  • Maintenance of records as company works through business or court requirements
  • Provides separation and protection of data

Most quality Cloud Service Providers have a list of case studies for all the above categories. Regardless of current business condition…the Cloud can offer some real advantages.

Innovation and Growth…Not Infrastructure

Forbes recently reported that one of the biggest advantages of the Cloud is that it holds the potential to accelerate innovation. When all our portions of the data center are moved into the Cloud, resources are liberated. By refocusing the money and people resources, the enterprise can jump start innovation activities using resources that were previously trapped in support of the premise based systems.

Research from IT industry analysts affirm that Fortune 1000 companies have already moved one out of three mission critical applications to the Cloud with more to follow. The developers of these mission critical apps are dialed into the Cloud because of the double down benefits of speed and agility in which it provides.

Cloud Computing … Infrastructure as a Service has moved past the discussion of elementary knowledge and into the “Nuts & Bolts” of how to implement. Meetings, seminars and articles no longer start with “Let’s begin with defining the Cloud.” Gartner recently reported expected growth of Infrastructure as a Service (IaaS) growth more than double by 2016.

The growth and acceptance of the Cloud within the enterprise is the result of the successful outcomes as business moves to the Cloud. While each company benefits in ways as unique as the case study written about them, the overall conclusion is consistent. The enterprise, by moving to the Cloud, is able to do things that they simply could not do prior to their move and focus on innovative activities that provide real growth for the company.