How AI technology can create new jobs

How Cloud Computing Can Create Jobs

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 5 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

Matt Holleran

Cloud Platforms, Marketplaces, and Startups

Cloud Platforms, Marketplaces, and Startups One of the most exciting recent developments in the cloud software business is the proliferation of partner ecosystems, with large public and late-stage private cloud companies creating their own marketplaces ...
David Friend

Cloud 2.0 will not be Ushered in by AWS or other Cloud Giants

Cloud 2.0 Trends Amazon, Google, and Microsoft are all pursuing similar business strategies: they want it all. ‘It,’ in this case, means the entire IT infrastructure in their cloud. Furthermore, they want you to buy ...
Aarti Parikh

What are the Capabilities of the AWS Serverless Platform?

AWS Serverless Platform AWS serverless compute services allow to build and deploy applications on AWS cloud without having to manage the servers. AWS serverless platform enables vendors to deploy cloud solutions without server provisioning, deploying, ...
Amazon's Varies Revenue Segments

Amazon’s Varies Revenue Segments

Amazon Revenue Amazon has become the largest retailer worldwide, however it is projected to make up less than 5% of U.S. retail sales by the end of 2020. While most people are already familiar with ...
Steve Prentice

The Human Element of Zero Trust

The Awareness of Malicious and Threat Actors Security specialists have long known that a single weak link in a chain is all that is needed to bring down a cyberdefense. Sometimes this comes down to ...
Anita Raj

Can the cloud handle the streaming explosion caused by the pandemic?

The Streaming Digital Explosion From the time the coronavirus forced the global community to stay at home, a whopping 16 million people have newly subscribed to Netflix, which is more than double the number the ...