Local IT firms urged to go along with the cloud
Cloud computing is playing an important role in the IT business. It has been growing at a crazy pace for a few years, and seems likely to keep growing rapidly.
According to Forrester Research, the global cloud computing market will grow from $40.7 billion (Bt1.3 trillion) in 2011 to $241 billion in 2020. The value of the US government’s cloud computing alone is expected to achieve a compound annual growth rate of 16 per cent over the period 2013-2018, with the federal government’s annual cloud computing market set to hit $10 billion by the end of that period.
Cloud computing represents the future, and local IT companies, especially software firms, must catch up with this technology and join its growth path immediately.
Actually, cloud computing is an extension of Internet services, said Adirak Patitus, president of the Association of Thai ICT Industry (ATCI). He said that cloud computing opens windows of opportunity for all kinds of IT companies, including hardware vendors and software firms. It is especially beneficial for software companies who have their own software or applications that can be provided on a cloud platform.
"Cloud is confirmed as the key technology for the IT business now and for years into the future. Local IT and software businesses need to be aware of its importance and research for themselves which assets or strengths can receive added value by applying the cloud computing trend," Adirak said.
Apart from the heavy growth in cloud computing itself, it also boosts growth for related businesses, especially Internet services, data centres and data-recovery centres.
"There is room for many businesses with the coming of cloud computing. It’s up to each IT and software business as to how to position themselves on the cloud-computing platform and value chain. If they don’t, they will not grow and could die," Adirak said.
Meanwhile, Thai Software Export Promotion Association (TSEP) president Pirasan Punyagupta said cloud computing is a key tool that will allow TSEP’s members to expand their businesses abroad with less cost and greater efficiency. Normally, expanding into overseas markets means more investment in resources including people, time, infrastructure and facilities. Cloud-computing technology helps remove these obstacles and give a firm the power to expand with lower investment costs.
Currently, four TSEP members offer cloud software: Comanche, CT Asia, Synature Technology and Touch Technology.
"Cloud computing lets us provide software services to customers overseas seamlessly. We do not need to invest in setting up local offices and travelling a lot. We can provide and maintain a standard of service at less cost because of cloud computing," said Pirasan.
TSEP plans to encourage its members to adopt cloud computing by making them aware of its benefits and offering them cloud technology resources. For example, it plans to arrange matching seminars where cloud service providers can meet software firms.
"Software firms have to invest more in data centres and Internet hosting, but costs are lower compared to setting up offices abroad. To achieve this they need to adjust their software solutions to cloud versions. This is the beauty of cloud computing," said Pirasan.
He said TSEP aims to encourage 10 members to adopt cloud computing by the end of this year.
