April 10, 2013

SMEs Dropping In-house Datacenters In Favor Of Cloud

By Abdul Salam

SMEs Dropping In-house Datacenters in Favor of Cloud

We have often discussed that virtualization itself does not mean cloud computing, but rather it is the combination of virtualization and the delivery models being used to distribute the resources. And it is becoming clear that the benefits of cloud computing are starting to show despite unfounded fears that cloud computing is relatively unsafe. It is becoming a trend for small and medium companies to let go of their small data centers in favor of migrating their data and applications to the cloud.

This is evidence that people are starting to understand the real power of cloud computing –it is an equalizer. It brings the computing power and resources which were previously only accessible to large companies with enough money and man-power. Smaller companies have to be content with cheaper and less powerful hardware and less man-power. The result is that smaller companies are not able to compete with larger ones simply by virtue of available resources. But with cloud computing’s pay-per-use model, the underdogs are now able to harness that advantage previously held only by those with enough money. Because of this, the playing field is mostly leveled and even smaller companies can compete in the same space as bigger ones because they are able to offer similar services for probably cheaper prices.

 

Another reason why this adaption is taking place is because of the changing climate in the IT industry. Because of the internet and the popularity and ease of creating websites, plus the increasing demand for mobile application developers, IT workers with the key skills required in the data center space are growing scarce. There are now only a few people interested in the kind of work IT administrators do, and so this is creating a large cavity in man-power, couple that with the growing cost for upgrading data centers and you have a problem with only one best solution.

So now many CIOs are retiring their data centers and shifting IT workloads to external Service Providers because they are concerned that it will become difficult to find the right workers to run an increasingly costly data center. This actually bodes well for cloud computing as it will only help make it shine. And as in-house data centers are closing, the talented IT professionals left without work will probably find their way to cloud service providers thereby solidifying the talents within that organization.

By Abdul Salam

Abdul Salam

Abdul Salam is Projects Lead, Cloud ERP Applications with the University of Sharjah

He has 13+ year of work experience with Oracle implementation and knowledge to Oracle and partners project methodologies. He is working as HRMS Consultant - Oracle Apps with Arowana Consulting, Dubai for more than two years and has principal expertise in some business process and modules as Oracle Core HR / Oracle Payroll, Oracle Performance Management, Oracle SSHR, Oracle Time and Labour and others.
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