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Cloud Computing Can Innovate the Business Model and Will Create New Jobs

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An IBM study proposes six cloud computing enablers for the business model innovation, while an IDC paper estimates that cloud computing will create 14M jobs worldwide by 2015.

IBM has conducted a study on how businesses currently use cloud computing and their plans for the future from the perspective of its impact on the business model used. The research involved 572 business and technology executives spread around the globe and it was published under the title The power of cloud. Driving business model innovation (PDF).

The IBM’s study cannot be seen as representative for the entire IT landscape, but it does offer insight on what large enterprises are doing regarding cloud computing. 13% of the respondents said they already have implemented some cloud computing solutions, and 21% are in the process of adopting one, while 38% are piloting one, a total of 72% of the large corporations surveyed. This number is supposed to grow over the next 3 years up to 90% showing the dynamics of this market, as depicted in the next chart:


Although a large percentage of the respondents considered cloud computing a technology game changer, “its potential for driving business innovation remains virtually untapped”, concludes the study, outlining six business enablers that could innovate the business model:

  1. Cost flexibility – Shifts fixed to variable cost and allows “pay as and when needed” model
  2. Business scalability - Provides flexible cost-effective computing capacity to support growth
  3. Market adaptability - Enables faster time to market and supports experimentation
  4. Masked complexity - Enables expanded product sophistication and allows for more end-user simplicity
  5. Context-driven variability - Enables user-defined experiences and increases product relevance
  6. Ecosystem connectivity - Fosters new value nets and drives potential new businesses

Another study realized by IDC (PDF) has tried to measure the impact of cloud computing technology adoption on jobs. This study has used a broad definition of cloud computing including storage services, virtualized infrastructure, self configuration, and automated provisioning. IDC predicts that cloud computing will create almost 14 millions jobs worldwide over the next four years:


Almost half of these jobs will be created in China and India, followed by Asia, EMEA and North America:


While the future may not be as bright as projected by this paper, the numbers suggest that cloud computing will be quite ubiquitous in the near future and many business will make use of the cloud for their products and services.

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