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The Economy of the Cloud

A walk in the Cloud: how cloud technologies and cloud companies have affected the economy

In the 1960s, the first concept of cloud computing was born. It was suggested as an “intergalactic computer network,” a system to interconnect people around the world and allow them to access programs and data from anywhere. Professor Ramnath Chellappa first used the term “cloud computing” in 1997. Salesforce.com came on the scene two years later, launching as the first established cloud company.

Debuting a platform for delivering business applications, this serves as the basic model offered by cloud computing organizations today. Amazon Web Services and Google Apps followed suit throughout the early 2000s, with Amazon Web Services, Elastic Compute cloud and Google Apps.

With all the technological advancements of the Cloud, how has it transformed our business world today?

The Economy of the Cloud

In 2015, 63% of businesses used private cloud services. An astounding 88% of businesses used public cloud services. 82% of businesses use hybrid cloud services (a public and private combination). Experts predict that by 2016, the Cloud will store 36% of all data.

The Cloud also saves everyone from small business and to the U.S. federal government money. It saved $5.5 billion per year by turning to cloud-based platforms. 64% of private companies have reported reduced waste and lowered energy consumption since shifting to the cloud. Businesses also report improved security, service availability, increased data efficiency, lower operating costs and transformative impacts on their operations.

But, that’s not to say that the Cloud isn’t a great way to spend money as well. Cloud computing spending by small businesses will reach $16 billion in 2015. By 2020, cloud computing is anticipated to be a $270 billion industry. Service apps are predicted to be largest cloud service at the end of 2015, coming in at $67.4 billion.

Big Players in Cloud Computing

So, who are the biggest players in cloud computing? Salesforce.com was the first, and it’s still holding strong with an 18.4% market share. One million jobs are predicted to be created by 2018 directly related to the Salesforce ecosystem. Salesforce will be responsible for an additional 1.5 million jobs by 2018 in relation to supply and distribution chains. Other key companies are SAP, Oracle and Microsoft. Jobs in SQL, Java, software development, Linux and JavaScript are being created all over the United States, spread evenly throughout New York, San Francisco, San Jose, Chicago and Washington D.C.

Consumers too are benefitting from the Cloud without even knowing it. A whopping 95% of Americans use services in the cloud. However only 29% actually reported using the cloud. 14% have pretended to know what the cloud is in a job interview. 17% have done so during a first date. 10% are honest and say they have never heard of the cloud.

You use the cloud without realizing it if you are connected to Spotify, Netflix, Xbox Live or Hulu. If you plan on using Nest Labs, GE WiFi Connect or BMW ConnectedDrive, you also connect to the cloud in more ways than you ever thought possible.

Practical Applications for Businesses

At Soliant Consulting, we take a great interest in the evolution of our technology world. The software we create for our clients has to make an impact for their organizations and grow as their businesses grow. We bet on Salesforce a few years ago and it’s been gratifying to see the company lead the industry.

Salesforce Winter ’16 Release

Winter 2016 Release Digest

Learn more by reading our white paper on the Salesforce Winter ’16 Release. It covers a wealth of new features from Salesforce including the latest on Lightning.

If you’d like to speak directly with one of our consultants about our custom development services, please let us know.

9 thoughts on “The Economy of the Cloud”

  1. Nowadays every body is using cloud services, knowingly or unknowingly , and it is really very useful thing for all of us, I am a paid subscriber of netflix and I did not even know that I am a cloud user.

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  3. Author of this article gives a really good example of way of improving business. I can`t, but say, that I use virtual data rooms for my business. It is especially useful when you work with many partners and you can give and get any information in one minute. In difference of simple sharing systems, virtual rooms are safe. I strongly recommend businessmen to try such rooms.

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