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.

View All Articles

Sorry, comments are closed for this post.

Cloud Infographic: IoT For Automotive Deconstructed

Cloud Infographic: IoT For Automotive Deconstructed

IoT For Automotive Deconstructed The IoT automotive industry is moving rapidly with many exciting growth opportunities available. We’ve written about some of the risks and benefits as well as some of the players involved. One thing for certain as that the auto industry is starting to take notice and we can expect the implementation of a…

6 Tech Predictions To Have A Major Impact In 2016

6 Tech Predictions To Have A Major Impact In 2016

6 Tech Predictions To Have A Major Impact The technology industry moves at a relentless pace, making it both exhilarating and unforgiving. For those at the forefront of innovation it is an incredibly exciting place to be, but what trends are we likely to see coming to the fore in 2016? Below are six predictions…

Mobile Connected Technologies – The Future Of The Healthcare Industry

Mobile Connected Technologies – The Future Of The Healthcare Industry

Mobile Connected Technologies Clinics, hospitals, and other healthcare facilities are embracing new mobile technologies in order to be more efficient in their daily tasks. With faster communication and better collaboration, clinicians can spend much less time handling medical devices and more time administering care to their patients. Industry experts are stating that mobile connected technologies…

Why Cloud Compliance Doesn’t Need To Be So Overly Complicated

Why Cloud Compliance Doesn’t Need To Be So Overly Complicated

Cloud Compliance  Regulatory compliance is an issue that has not only weighed heavily on the minds of executives, security and audit teams, but also today, even end users. Public cloud adds more complexity when varying degrees of infrastructure (depending on the cloud model) and data fall out of the hands of the company and into…

Cloud Computing Myths That SMBs Should Know

Cloud Computing Myths That SMBs Should Know

Cloud Computing and SMBs Cloud Computing is the hottest issue among IT intellects of Small and Medium Businesses (SMBs). Like any other computer-orientated technology, Cloud Computing has some misconceptions and myths that often kick-start arguments among the two opposing groups: Cloud Supporters and Cloud Opponents. Both of these groups have their own ideology and reasons…

Low Cost Cloud Computing Gives Rise To Startups

Low Cost Cloud Computing Gives Rise To Startups

Balancing The Playing Field For Startups According to a Goldman Sachs report, cloud infrastructure and platform spending could reach $43 billion by 2018, which is up $16 billion from last year, representing a growth of around 30% from 2013 said the analyst. This phenomenal growth is laying the foundation for a new breed of startup…

5 Essential Cloud Skills That Could Make Or Break Your IT Career

5 Essential Cloud Skills That Could Make Or Break Your IT Career

5 Essential Cloud Skills Cloud technology has completely changed the infrastructure and internal landscape of both small businesses and large corporations alike. No professionals in any industry understand this better than IT pros. In a cutthroat field like IT, candidates have to be multi-faceted and well-versed in the cloud universe. Employers want to know that…

Cloud Infographic – Big Data Analytics Trends

Cloud Infographic – Big Data Analytics Trends

Big Data Analytics Trends As data information and cloud computing continues to work together, the need for data analytics continues to grow. Many tech firms predict that big data volume will grow steadily 40% per year and in 2020, will grow up to 50 times that. This growth will also bring a number of cost…

Disaster Recovery – A Thing Of The Past!

Disaster Recovery – A Thing Of The Past!

Disaster Recovery  Ok, ok – I understand most of you are saying disaster recovery (DR) is still a critical aspect of running any type of operations. After all – we need to secure our future operations in case of disaster. Sure – that is still the case but things are changing – fast. There are…

Five Signs The Internet of Things Is About To Explode

Five Signs The Internet of Things Is About To Explode

The Internet of Things Is About To Explode By 2020, Gartner estimates that the Internet of Things (IoT) will generate incremental revenue exceeding $300 billion worldwide. It’s an astoundingly large figure given that the sector barely existed three years ago. We are now rapidly evolving toward a world in which just about everything will become…