Beware of Investing heavily in redundant technology
On-premise software is fast becoming redundant technology. Companies are fast becoming aware that SaaS (Software as a Service) solutions are far more cost effective over a five year period and beyond then any on premise applications.
It makes more sense that corporations manage their business and not their software, leaving the total management of the solution to those companies whose core competency is to deliver that service.
Businesses don’t want to know about the IT, the servers, the backups, the capacity, the load balancing, the upgrades and so on. They just want to use it today and know that tomorrow it will grow with them seamlessly.
The future starts now
Cloud computing is Internet ("cloud") based development and use of computer technology whereby dynamically scalable virtualised resources are provided as a service over the Internet. Users need not have knowledge of, expertise in, or control over the technology infrastructure "in the cloud" that supports them.
The concept incorporates software as a service (SaaS), Web 2.0 and other recent, well-known technology trends, in which the common theme is reliance on the Internet for satisfying the computing needs of the users.
The rise of data-intensive applications, data centre pressures, and mobile and networking technologies is driving a business uptake of cloud computing.
The Web is no longer an application, but has become a platform for building new applications. Over the next 5 years, 80 percent of business enterprises will be paying for some cloud computing services, and 30 percent will be paying for cloud computing infrastructure services.
New Web technologies are expected to yield new services, platforms, utilities, and business models for businesses and service providers.
By providing programmatic access to Web-based services on which applications and businesses may be built, cloud computing is expected to yield cost savings for IT functions that are large-scale, common and standard.
Products like NetSuite Integrated Business Software are leading the way providing the entire business solution as an online service. Companies are now realising that they are very competent and business savvy when it comes to running every part of their business except the IT. As most organisations are highly dependent on their software it makes sense to be able to use it and not manage it.