How Cloud Computing Can Create Jobs

How Cloud Computing Can Create Jobs

“Few companies that installed computers to reduce the employment of clerks have realized their expectations…. They now need more and more expensive clerks even though they call them ‘operators’ or ‘programmers.’”

– Peter Drucker (1909-2005), American management guru and author.

As Peter Drucker wrote, new technologies do not reduce employment; they simply raise the level of skill required to be employed. Those who can change, prosper; those who can’t, have to settle for low-paying jobs or join the ranks of the unemployed.

Take IT maintenance for example. With cloud computing, businesses will no longer have to maintain employees for IT maintenance as that will be taken care of by the service provider. But wait, doesn’t that mean there will be fewer jobs in the aftermath of migration to cloud computing?

No, it’s not as simple as that. The study of Microeconomics shows that any money thus saved would likely be invested back into the business. The resultant expansion would create more jobs than is lost by axing the IT maintenance employees.

Moreover, with cloud computing there will come cost savings. And these savings, once cycled back in the business, will create economic value far exceeding the quantum of savings. As any economics student will explain, there’s a multiplier at work here.

According to a report released by storage solutions giant EMC in association with the UK-think tank Centre for Economics and Business Research (CEBR), cloud computing can generate 2.4 million jobs in the next four years in the EMEA (Europe, Middle East and Asia) region, 300,000 of them in the UK alone.

This report, titled 2011 Cloud Dividend, examined several key markets in Europe, including France, Italy, Spain, Germany and the United Kingdom. In fact, adoption of cloud computing by just these five countries can generate more than $243 billion in annual revenue, with Germany getting the biggest share, it opined.

One of the key drivers for economic recovery will be job creation,” said Oliver Hogan, CEBR’s managing economist. Migration to cloud computing is expected to produce 446,000 jobs each year in Europe, Middle East, and Africa until 2015.

A critical element in businesses achieving the competitive advantage presented by cloud computing lies in the successful virtualization of mission-critical and revenue-generating applications,” said Sandra Hamilton, EMC’s vice president for Europe. “That will be key to realizing the full cloud dividend – and to deriving the powerful growth and productivity gains which, as the new report shows, can lead to meaningful job creation across the EMEA region.”

The report also looked at how different industries will be affected by such a move. The distribution, retail and hotel sector will benefit the most from cloud computing, with more than $320.5 billion in earnings and 354,790 jobs generated, according to the study. BFSI (Banking, Financial Services and Insurance) is second with $253 billion, with government, education and health care some distance away with $155 billion. However, the public sector will be the biggest gainer in terms of job creation, with 801,000 positions expected to be created over the next five years.

Overall, the future seems to be quite bright, both for companies and their employees, if they make the move to cloud computing. Of course, the employees may have to develop themselves in skills different from those that are in demand today. But one things is clear – the properly trained employee won’t lack for a job.

By Sourya Biswas

sourya

Sourya Biswas is a former risk analyst who has worked with several financial organizations of international repute, besides being a freelance journalist with several articles published online. After 6 years of work, he has decided to pursue further studies at the University of Notre Dame, where he has completed his MBA. He holds a Bachelors in Engineering from the Indian Institute of Information Technology. He is also a member of high-IQ organizations Mensa and Triple Nine Society and has been a prolific writer to CloudTweaks over the years... http://www.cloudtweaks.com/author/sourya/

Sorry, comments are closed for this post.

Comics

At CloudTweaks, we're plugged into the cloud, the internet of things and all that the web has to offer. From wearable technology, to mobile computing, cloud computing and big data, CloudTweaks is your source for updates and news on the most innovative technology.

Popular

Top Viral Impact

The Business Benefits of Cloud CRM

The Business Benefits of Cloud CRM

The Business Benefits of Cloud CRM From software deployment, to mobility, to wearable technology, cloud computing has transformed seemingly every aspect of modern business. Research indicates cloud applications and platforms will be at the forefront of IT spending by 2016, with half of all enterprises implementing cloud solutions by 2017. One of the quickest markets…

Cloud Computing Adoption Continues

Cloud Computing Adoption Continues

Cloud Computing Adoption Continues Nowadays, many companies are changing their overall information technology strategies to embrace cloud computing in order to open up business opportunities.  There are numerous definitions of cloud computing. Simply speaking, the term “cloud computing” comes from network diagrams in which cloud shapes are  used to describe certain types of networks. All…

Cloud Infographic – What Is The Internet of Things?

Cloud Infographic – What Is The Internet of Things?

What Is The Internet of Things? “We’re still in the first minutes of the first day of the Internet revolution.”  – Scott Cook The Internet of Things (IOT) and Smart Systems are based on the notions of Sensors, Connectivity, People and Processes. We are creating a new world to view and measure anything around us through…

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth

5 Ways The Internet of Things Will Drive Cloud Growth The Internet of Things is the latest term to describe the interconnectivity of all our devices and home appliances. The goal of the internet of things is to create universal applications that are connected to all of the lights, TVs, door locks, air conditioning, and…

Cloud Infographic: Cloud Public, Private & Hybrid Differences

Cloud Infographic: Cloud Public, Private & Hybrid Differences

Many people have heard of cloud computing. There is however a tremendous number of people who still cannot differentiate between Public, Private & Hybrid cloud offerings.  Here is an excellent infographic provided by the group at iWeb which goes into greater detail on this subject. Infographic source: iWeb About Latest Posts souryaSourya Biswas is a…

Featured Sponsors

The Internet of Everything Opens Up The World

The Internet of Everything Opens Up The World

Shaping The World With New Technologies As a connected collection of intelligent objects, the Internet of Everything promises to open up those areas of the world hardest hit by economic, political and agricultural blights. Relatively inexpensive devices, paired with revolutionary energy sources and unprecedented access to information offer great promise to farmers and workers in…

2015 Advertising Opportunities - Find Out More!

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Contact

CloudTweaks Media
Phone: 1 (212) 763-0021

Join Our Newsletter