Cloud enables firms to outsource IT services

December 13, 2011: The concept of cloud has been gaining momentum as firms can cut cost and enhance efficiency by outsourcing some of their Information Technology functions. Rather than hosting and maintaining all the IT functions by their own, companies can access software, IT infrastructure and data remotely through the cloud.

The cloud helps businesses to reduce cost by cutting down their expenses on purchasing their own equipments and help them to shift towards rental solutions. The firm will need to pay an amount for using the services over the cloud.

Most of them using the internet have been using the cloud services for years. For example, social networking sites such as Facebook, and email services such as Gmail, make use of the cloud to store information and retrieve them as and when needed by the user. The device we use to access Facebook or Gmail do not store the information, but is stored somewhere else and is accessed via cloud.

In the present day, cloud computing is finding increased application in the business world than the consumer world. Most of the companies have started to adopt cloud services at a larger scale, even though adoption is in the initial stages. About 80% of the Companies in the US currently use cloud in some way or the other, whether they are aware of it or not.

Business corporations have invested heavily on software and it is found that 14 per cent of the total spending was for cloud services. It is estimated that spending on cloud services will be reach 25 per cent in the next five years. Gartner, a research company in the area of technology predicts that the revenue from cloud services across the world will be about USD 89 billion an increase from USD 74 billion corresponding to the previous year. Gartner forecasts that the revenue generated will reach about USD 129 billion by the year 2013.

The shift towards cloud computing opens up huge opportunities for the outsourcing companies which offer cloud services and also to IT service providers. Cloud computing will help companies to simplify their Information Technology department, while increasing flexibility. Cloud has made IT outsourcing lot simpler and as a result companies can cut cost by reducing employees in the IT department. Another advantage with cloud computing is the cost reduction as it operates in a pay as you use model.

Businesses are concerned with the security of cloud computing. Experts say that it is impossible to completely eliminate that risk. Mean while some other experts say that improvement in technology will help in reduce the risk by ensuring security.

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