July - 2010 issue > Technology

By C.V. Narayanan

The Promise of the Cloud

Cloud computing is actively revolutionizing the traditional IT landscape. It is all about paying only for what you consume. It is a legitimate way for companies to significantly lower costs of infrastructure while increasing scale of operations.

Cloud computing promises to increase the speed at which applications are deployed, foster innovation, and lower costs, thereby increasing business agility. Forward-looking companies are now looking at this model to reduce infrastructure costs and simultaneously increase computational capabilities. Gartner has predicted that cloud computing will be the top most technology area IT should concentrate on in the year 20101. Compared to the beginning of 2009, the cloud computing landscape now is very different with a huge potential to change the face of IT for ever. Over the next five years, IDC expects spending on IT cloud services to grow almost threefold, reaching $42 billion by 2012 and accounting for 9 percent of revenues in five key market segments2. More importantly, spending on cloud computing will accelerate throughout the forecast period, capturing 25 percent of IT spending growth in 2012 and nearly a third of growth the following year.

Businesses today require a fast, reliable, and secure IT infrastructure to flourish. Small and medium enterprises are generally unable to meet the huge capital outlay that such an IT setup requires. Therefore, these organizations generally opt to migrate to the cloud, especially since it enables them to focus on their core activities, instead of worrying about maintaining their IT infrastructure.

The Role of Testing

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