Cloud computing contracts triple

Cloud computing contracts triple

The number of outsourcing contracts that involve an element of cloud computing has tripled since 2010, indicating that the cloud is very much at the centre of emerging technologies in the UK.

The research into the rise of outsourced cloud computing contracts was carried out by the consultancy, Information Services Group (ISG). It found that there will have been some 300 cloud outsourcing contracts awarded this year, up from 110 in 2010 and 220 last year.

ISG’s emerging technology analyst, Stanton Jones, said that there is likely to be yet more growth in this area, with potential for more cloud computing use in CRM, HR and collaboration areas. He explained, “Cloud services, especially shared platforms, are a new terrain for providers and clients alike, as they are highly standardised and can’t be easily customised — the antithesis of traditional outsourcing.”

He added that a quarter of all technology products in the pipeline now feature an element of cloud computing. ISG predicts that traditional service providers will feel increased pressure as a result of the emergence of cloud. He stated, “Clearly, cloud is a disruptive trend in the enterprise and we predict this disruption will not only continue, but accelerate, especially for the traditional IT service providers.”

“From well-known software vendors to more nimble mid-market players and emerging pure-play infrastructure and SaaS providers, traditional IT service providers face significant pressure in nearly every direction.”

Businesses looking to move services into the cloud, should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.