Uncommon Wisdom

Aug 21 2008   2:23PM GMT

Cloud computing on the rise in 2009

Tom Nolle Tom Nolle Profile: Tom Nolle

Salesforce.com is heading for the clouds, if not in the eyes of Wall Street. The company posted good growth (almost 50% y/y) but said third-quarter numbers would likely reflect slowing growth, though they guided up for the year. Significantly, they made a big deal of cloud computing and the creation of an ecosystem for developers and application owners.

We have also heard from our enterprise survey base that cloud computing is getting a lot of attention suddenly. One said “Cloud Computing is really making a paradigm shift…The entire concept of Virtualizing Data Centers has caught massive attention all across the industry and now even Financial Services seem to be nodding to this concept that will potentially save huge amount of $$$ plus provide a highly reliable, top of the line Data Center capability plus the capability to provide aggregated services which was just a notion before is turning into reality now.”

The cloud computing wave could have a major impact on 2009 planning for just about everybody, with the possibility that enterprises would turn to cloud-based services as an alternative to building out more in-house data center capacity. So far, however, there is no sign this will impact the sales of the IT giants like IBM and HP.

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