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@CloudExpo Blog: Article

Cloud Computing Can Slash IT Expenses by Half: Report

Cloud News Round-Up

An IT services provider based in Asia is throwing up some big numbers when it comes to savings and cloud computing.

DataOne Asia, an independent provider of IT services in the Philippines, said businesses can significantly reduce expenses by putting in place cloud computing solutions, according to an article on PCAdvisor.co,uk.

"Businesses that migrate their IT systems to the cloud could save at least 50 percent of their expenses. This is because the cloud minimizes the cost of infrastructure, management and support," said DataOne Asia President and CEO Cyril Rocke.

Rocke says that the cloud could help companies minimize expenses on procuring and maintaining their IT infrastructure.

"Most IT users tend to underestimate the cost of procuring infrastructure. Whenever a company wants to buy IT equipment like servers, they cannot do it in a snap. They need to follow a long procurement process where they have to justify the project, write cost-benefit analyses, and submit the necessary papers to different departments. Sometimes, there's even a need to hire IT experts that will decide which equipment is best for a company."

"In reality, companies can spend more than a year and thousands of [dollars] on the procurement process alone. This entire traditional procurement process severely damages businesses, and reduces their ability to react and roll out new ideas and solutions."

Rocke says that, instead of procuring new equipment, a company can address its IT needs by looking to cloud services. He believes that moving to the cloud will downsize a company's lengthy procurement process.

Cloud Computing: Effectively Changing the Business Operation Model
Cloud computing is certainly on the up and up, and the pace at which it's transforming business models and efficiencies is quickening as well.

The reason for the transformation depends on how a business operates and its specific needs, but some major trends have emerged, according to an article on Forbes.com.

One of the main accelerators of cloud computing? Employees. Workers are one of the main driving forces behind many changes related to cloud computing within the business environment. Employees want to work from home or even use devices with which they are most comfortable. Cloud computing has made it easier for remote employees to enjoy all of the benefits of working in an office (collaboration, Hosted Exchange email, access to documents, etc.) while they are working from home or even on the road.

Cloud computing has unburdened businesses from the traditional IT business model, giving them more options when it comes to their IT infrastructure. In the past, the business/IT model was straightforward: Businesses hired IT professionals to run their computer hardware and software. The IT staff had to forecast business needs as far out as 5 or 10 years, and make purchases accordingly.

The problem with this business/IT model was that oftentimes the forecasts were wrong. And there are certainly horror stories of IT forecasting. For example, IT may forecast that a business will only need a certain amount of data storage for the next five years and only purchase the forecasted amount, without considering growth, more personnel or even just more demand on the system. Then after only a year, IT realizes that they're on the verge of running out of storage and need to purchase more.

With cloud computing, you never have to worry about running out of storage or server capacity, resulting in major cost savings.

Walmart Acquires Cloud Startups OneOps and Tasty Labs
Walmart is getting in on the cloud computing craze.

The Silicon Valley technology subsidiary of Walmart, @WalmartLabs, has picked up two cloud computing startups.

OneOps, which developed a PaaS that automates and accelerates the management of product releases, and Tasty Labs, a software development shop responsible for Jig.com and Human.io, have joined the technology arm of Walmart Global eCommerce. This could put Walmart directly into the cloud computing business, and with its corporate muscle, it's difficult to predict how Walmart could have an impact on the cloud space, according to an article on TalkinCloud.com.

"OneOps will help us deliver on our plans to bring together best-in-class retail with best-in-class e-commerce to create amazing experiences for customers. We are proud to have them on board and joining our talent-filled team," wrote Walmart's Tim Kimmet on the @WalmartLabs blog.

Walmart did not disclose the terms of the acquisition agreement, but with the addition of OneOps, Walmart should be able to accelerate its PaaS and IaaS strategies. Much of the development will likely be internal for use within Walmart for e-commerce, but there's nothing stopping Walmart from becoming a cloud services provider in its own right. Should Walmart bring its traditional business strategies to the cloud world, it could upset the apple cart.

More Stories By Patrick Burke

Patrick Burke is a writer and editor based in the greater New York area and occasionally blogs for Rackspace Hosting.

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