Reasons Why Cloud Computing Is A Hot Start-up Area

Reasons Why Cloud Computing Is A Hot Start-up Area

The cloud computing business model has had a phenomenal adoption in the last decade. It scales business, private, and public operations in a way that lowers costs, takes advantage of new technology, and boosts efficiency with minimal infrastructural engagements. And because it’s been the center of many debates surrounding business operations, cloud computing sector has been a beehive of activities. In the past few months, it has suddenly become a hot start-up area, attracting more and more interest. There are a number of possible reasons for this.

1. Closing knowledge gap about the cloud

According to a survey carried out and published by the Business Insider in late 2011, close to 50 percent of all Americans were not aware of what the cloud was. When the infograph came in, it worried stakeholders in the industry and they seem to have acted upon it. Recently, there has been marked evidence of a reducing knowledge gap in the previously quiet cloud sphere. People are becoming aware of the cloud and what it can do for start-ups and innovative businesses

2. Managed cloud negative publicity

Compared to a few years ago, the way the cloud works today is more radical. Despite the negative publicity from the Megaupload piracy scandal and the website’s federal lockdown, the Sony cloud hacking situation, and other controversies, cloud advocacy stepped up. This is partially because the players have started to take responsibility for their affairs. For the industry as a whole, this seems to have worked well.

3. Less competition in the cloud

Unlike programming, software, and the other industries controlled by monopolies or conglomerates, cloud computing faces relative calm in operations. There is not much competition in the sector. This gives start-ups the opportunity to move into the sector and collect gains before competition sinks.

4. Increased cost of doing business

The cost of running businesses has increased but not because of the increase of opportunities, revenues, or markets. On the contrary, economies have been shrinking. The cloud is comfortably in the lead of options that offer businesses the opportunity of virtualized, more efficient, and cost-effective business models. Smart cloud computing providers and start-ups have moved in to provide custom solutions for these businesses.

5. General positive predictions for the sector

The essence of the start-ups is to move into new sectors and drive more or less faster changes. Looking at the current order of business, the cloud seems to be in the driver’s seat. Its future is bright. Considering we have more venture capitalists like Kleiner Perkins Caufield & Byers getting into the fore, the sector is headed for a greener future and this will change the current business models and sector players.

By Gregory Musungu

About Gregory

Gregory is a writer from Kenya whose education background is Biotechnology, New Media and Accounting. When his intense passion for the tech sphere is not sending him to experiment with new gadgets and technology, you can find him creatively engaged in Nairobi’s thriving underground art scene, copywriting and design.

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