11 May
2016

Disruptive Cloud Computing Technology: Why You Should Care

You hear about the cloud, cloud computing and its various offerings all the time. These offerings are growing exponentially in popularity for small, mid-market and large companies alike. To give you an idea of how big the cloud has become, Forbes reports that cloud computing revenue is estimated to reach a whopping $200 billion by 2018.

The growth of cloud computing has been and still is disruptive to all businesses and their information, communications and technologies (ICT) practices. So, what is this disruptive cloud computing phenomena and why should you care?

 

What Is Disruptive Technology?

Clayton M. Christensen, a Harvard Business School professor, describes disruptive technology as a “new emerging technology that unexpectedly displaces an established one.”

I experienced the disruption firsthand when Cisco decided to get into the telecom world. Phone systems were still mainly microwave-sized boxes with slots for cards that offered connectivity. Cisco, and a few others, introduced server-based communication systems and offered phones over your LAN and WAN through VoIP. They displaced the old with the new and everyone jumped on board to compete.

Move forward a decade or so and now there is communications in the cloud with no customer premise phone server or traditional business phone lines needed. The cloud is replacing the now established, in-house telecom VoIP solutions with innovative services solutions. This is disruptive technology at its finest.

 

What Is Cloud Computing?

Cloud computing can be simply defined as storing and retrieving data and programs over the Internet instead of your local PC or server. You use cloud computing when you bank online, when you use social media and when you purchase products from companies like Amazon.

 

What Are the Trends in Cloud Computing?

A great example of a disruptive, cloud-based company is Amazon. It went from designing its own internal cloud services technology to offering it externally to a niche market. At first, it was a low-end offering that the company’s competition ignored. Amazon then steadily moved upstream with its S3 storage services to become a top provider. Amazon is not the only one to do this either.

In 2015, Amazon and Microsoft reached a new milestone, earning $7 billion each from cloud hosting services. Google and IBM were not too far behind. This has not gone unnoticed by IT departments. IDG’s 2015 Enterprise Cloud Computing Survey claims that “90 percent of enterprises are relying on APIs in their cloud integration plans for 2016.” Furthermore, a quarter of total IT budgets will be allocated to cloud computing in the next year, and enterprise departments are expected to invest more money as well.

 

Why Should You Care?

You should care because cloud computing is one of the most disruptive, large-scale technologies in history. It’s growing exponentially and, more importantly, it’s being widely accepted by businesses nationally and globally. There are also clear indicators that the cloud is not going away anytime soon. It just makes good business sense to investigate cloud computing usage and reselling opportunities to help compete with your competitors.

 

What Are You Waiting for?

As any business owner knows, you’re either rising or falling; there is no coasting. Not understanding your cloud computing potential could put your company at risk. The benefits and business opportunities these investments create for your company increase revenues and maximize profits, so don’t miss out!

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