I have been trying to understand the financial implications of the cloud computing (as well delivery of services) for cloud versus on-premises. I think it would be foolhardy to put all eggs in the cloud basket.
It estimates that companies world-wide spent $31 billion on cloud services between January and March, up 34% from the same period last year.
The cloud market has seen back-to-back quarterly growth in recent years as companies seek lasting changes to their information technology systems by renting infrastructure and applications from cloud providers.
Many companies have also sought more advanced cloud-enabled capabilities, such as data analytics, artificial intelligence and robotic software, aiming to cut costs or generate revenue from new services.
But gains this year are being fueled by shorter-term needs, said Canalys chief analyst Matthew Ball. As a result, he added, many cloud users are taking out three-month contracts with cloud providers, rather than one- or three-year contracts, to keep employees working during state lockdowns. Remote-access tools and software are typically easier to deliver through the cloud.
I am not sure that the AI catchall mentioned here would be therapeutic for the companies looking to derive value out of the generated data. There are numerous ways you can monetise footfalls, only if you are willing to understand demographics. Location metadata holds the key. Universal registration holds the key but comes with several privacy tradeoffs.
Is cloud good or bad? Business continuity is paramount and essential and therefore, I am in favour of having someone who can segregate data to have on-premises servers. Cloud companies may be bound contractually to avoid “data-leaks” but they have complete visibility in its movement. That’s why Walmart will host on Azure and not on Amazon Web Services, even though, anecdotally, AWS is a far superior solution.
These are interesting times because as companies like Microsoft/Amazon and Apple move in the healthcare (by promising to “fix it”), it is essential to keep an eye on how they are going to achieve those ends. Cloud computing is going to be the core of its offerings. Watch this space.