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INDUSTRY NEWS


1 June 2009

Traditional IT firms 'trying to resist the cloud'


Many firms in the computing industry are trying to prevent the growth of cloud computing because it is taking business away from them.

This is the opinion of salesforce.com, which explains that if small to medium-sized enterprises (SMEs) begin investing in the cloud, they will no longer want to purchase servers, software and business applications.

Instead, they will run their applications in the cloud and pay a monthly subscription.

Steve Garnett, chairman of Europe, Middle East and Africa for salesforce.com, continued: "They want people to still be buying servers and software maintenance contracts and paying for complex upgrades and employing consultants to come in and fix the upgrade for them."

He said that the old computer industry is "putting businesses back to 1999".

In an article published on CNET, Google chief executive Eric Schmidt recently stated that it is time for SMEs to start embracing the cloud and the new technology it uses.<br/>

© 2006 Adfero Ltd.

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