The Cloud and Its Effect on Software and Business

What will The Cloud bring to business? Is it the growth technology that some claim it is? Or is it a whim in the sky? A recent survey with 785 participants gave their opinion about the nature of the Cloud on various business aspects. 35% of those respondents were customers, and 65% were vendors.

The main points learned at the conference were:

Software and the Cloud are synonymous. So the cloud is changing software. Software as a Service rules (SaaS) And Platform as a Service (PaaS) is important. What is SaaS? SaaS and PaaS are service models of cloud computing. The consumer creates the software using tools and libraries from the Cloud provider. The consumer also controls software deployment and configuration settings. The provider provides the networks, servers, and storage. SaaS is growing  six times faster than ordinary software.

Hybrid computing is becoming critical. And there are a lot of IT investment opportunities. 55% of CIO’s see an increase in spending in SaaS related services. In all of this, IT is setting up the local business operations.

What is the Cloud’s effect on software?

Well many survey participants believe that the Cloud is Changing Software.

The Cloud Drivers

There are a variety of features that are making the cloud a SaaS choice. Scalability, business agility, costs, mobility, and competitive advantage are just some of the items that are driving the growth of the cloud.



How many business plan on deploying SaaS applications?

From the results, there are plenty companies that work with Cloud services already, and more are planning to deploy. What is interesting is the 19%, because it says more about their own business structure where they don’t feel that computers or networking are making an impact. Where they will be in a year from now is critical, because it is estimated that 84% of new software will be SaaS. And 75% of the software built by 2017 will be PaaS.

The Hybrid Cloud will be growing where in five years it will be significant. The hybrid will be a combination of private cloud and public cloud operations.

At this time then, what is keeping business from adopting the cloud? Two things. Complexity and Pricing. Either the businesses don’t have the technical staff to adopt the cloud, or the pricing may be higher than they expect or can afford. Some businesses see a lack of transparency in the operations as holding them back. The standards for operations may not be clear, and a there is the perception of a lack of integration tying the base technology with the Cloud technology.


The results of the survey tend to support the main points of cloud computing. It will continue to grow and software will change significantly in the future because of it. Right now there are multiple reasons that are keeping more business from adding to the Cloud base. But as more companies integrate their services, those reasons will fall by the way side. After all, not every business believed that the internet would be important.

Source: Northbridge

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