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Cloud Computing: Smaller Companies find Competitive Advantage
There is another survey out on cloud computing. Clearly cloud computing is a hot topic and analysts are trying to capture the overall trends and direction of the technology.
This new survey survey by GigaOm and North Bridge Venture Partners concludes that while scalability and lower cost have been to date the two main drivers for cloud technology, in the future the main factors for considering the cloud will be the ability to better innovate and also to be more agile.
An interesting conclusion in the GigaOm report is likely that many large companies will suffer from the impact of cloud computing. Existing infrastructure and heavy reliance on legacy software will make it difficult for large companies to replace their non-core business applications with cloud-based equivalents. Nearly 80 percent of all software being run today in organizations is considered to be ‘non-core’. Smaller companies will find it much easier to start with or to switch from traditional software to cloud computing, and this will provide smaller companies greater flexibility, streamlined processes, and competitive advantage.
Other findings of the GigaOm report echo the findings of a number of other recent cloud surveys:
- 55 percent of people think that cloud computing brings lower total cost of ownership
- 25 percent of people think that vendor lock in with cloud computing options is a major problem
- 31 percent say that meeting compliance and security requirements in the cloud remain a major concern
