Cloud Computing will change the way Businesses work!

Technology has always played the role of a disruptive force that has changed business models, ecosystems, or even the world order. This is evident all through out history right from the stone-age to the current age of convergence/mobility. Technology is often a savior during the downward economic cycles as it enables the creation of more efficient business models and ecosystems. Ironically, it also creates unrealistic market expectations that could lead to economic downturn.

The Cloud is another such phenomenon that has stirred up interests and investments in many parts of the world. Research has indicated that the worldwide Cloud services revenue is forecast to reach USD 68.3 billion in 2010 and projected to touch USD 148.8 billion by 2014. A report released by KPMG titled ‘The Cloud- Changing the Business Ecosystem’ provides a comprehensive coverage of the phenomenon called the Cloud, its impact on the industry and its role in the transformation of business ecosystems.

Recently the world has gone through an economic downturn and there is an even stronger need for organizations to improve efficiencies by using collaborative solutions and real time information exchange. The Cloud could therefore be the next big thing with it gaining prominence during the recent credit crisis. The promise of the Cloud possibly lies in the flexibility, scalability and cost benefits made available through the ‘as-a-service’ paradigm.

Speaking at the global launch of the report, Kumar Parakala, Head of IT Advisory, KPMG in India and EMA said, “Technology has the ability to transform the world into the virtual space, enabling endless cycle of innovation. Advanced economies and enterprises have been able to effectively combine technology and innovation to gain a competitive edge. Emerging leaders like India and China are leveraging demographics and technology. Increased adoption of the Cloud could further strengthen their position to compete with the developed world and filling the economic and developmental void.”

The report highlights the need of a strong Cloud strategy for organizations to extract maximum benefit of migrating to the Cloud. It also investigates the drivers and challenges for Cloud adoption. “The Cloud is changing the way IT services / resources are being used and delivered. The Cloud also seeks to assure several techno-commercial benefits to enterprises and users. It’s time for businesses to redefine their business models and business leaders to revisit their IT strategy to better reflect the changing role of the technology deployment”, said Pradeep Udhas, Head of IT / ITeS Sector, KPMG in India.

One of the focus areas of the report was the Cloud’s impact on the industry sectors- Government, Healthcare, and Education. These sectors would benefit the most as the Cloud provides them with the socio-economic reach that they lacked for decades. Similarly, the Cloud promises to deliver affordable, reliable, and flexible computing solutions to SMEs, enabling them to compete more effectively with larger organizations. The report also covers the Indian context together with the tax implications for providing and using Cloud services.

“On the whole, the IT solutions and services industry could significantly change in order to accommodate this new service offering. Businesses have and would continue to adopt the Cloud in order to stay ahead of the curve. The Cloud is not just a passing phenomenon but a reality that has just begun to realize its potential”, added Nitin Khanapurkar, Executive Director, Advisory Services, KPMG in India.


    I have mixed feelings about cloud computing, based mostly on the fact that it would make millions of users and businesses dependent on one system of servers to provide all of their software, storage, and IT needs.

    While this might cut back on in-house IT costs it ignores the fact that any problems with the cloud will be felt on a much broader scale. If your company stores all of it’s data on the cloud and the cloud goes down it shuts down your business. And, if hundreds of businesses are working on the same cloud, all of those businesses would be shut down as well.

    I understand that clouds would be backed up and there would be secondary servers to prevent these kinds of issues, but in the same way that Windows PCs are the main target of today’s hackers due to the high percentage of users using that OS, it would seem that “the cloud”, if adopted at the rate of the projections above, would create a HUGE target for today’s hackers. And with thousands of users dependent on any given functionality of the cloud, any successes they have will be felt by many more people across multiple businesses.

  • PR@ AlmostLikeEverything!

    Yes Rohit you are Right, Cloud computing is the Next Big Thing. Data Centralization has always been a Favorite Topic of Experimentation and research and finally cloud Computing will Be Accomplishing It!

  • Juliemarg

    Several years ago (more than ten) an engineering friend of mine was selling cloud solutions to school districts. Instead of each teacher, secretary and principal needed to become adept at IT, the techie people would keep everything spit spot in the cloud.

  • Small Business Technology Solutions

    An interesting piece. However, I agree with in that the relying solely on the cloud presents a new set of potential problems. Especially for businesses, adopting certain Cloud applications makes a lot of sense, but putting all of your eggs in one basket is never a sound strategy.

  • Online Information Technology Blogger

    I am more interested to know what’s next after Cloud Computing. ;)

  • George & Data security

    Online data backup and recovery options are now popular and good way to backup data and keep very secure. Find a service to work with and which is well reviewed.