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March 12, 2012

Cloud Services to Generate 14 Million Jobs in South Africa: IDC

Spending on public and private IT cloud services will generate nearly 14 million jobs worldwide from 2011 to 2015, according to research commissioned by Microsoft, which was conducted by analyst firm IDC (News - Alert).

For this year alone, the study forecasts that just over 62,000 jobs will be created in South Africa through cloud computing initiatives, rising to 82,000 in 2013.

“The cloud is going to have a huge impact on job creation,” said Susan Hauser, Microsoft (News - Alert) corporate vice president of the Worldwide Enterprise and Partner Group. “It’s a transformative technology that will drive down costs, spur innovation, and open up new jobs and skillsets across the globe.”

More than one-third of cloud-enabled jobs will be created in the communications and media, banking and manufacturing industries, according to IDC. The research also found that IT innovation created by cloud computing could produce $1.1 trillion a year in new business revenues.

By freeing up freeing up IT managers to work on more mission-critical projects, Microsoft said the cloud is helping companies around the world to be more innovative.

After Agile (News - Alert) IT deployed Microsoft Office 365 and Windows Intune for one of its clients the chief operations officer said he can actually schedule a meeting with the IT director to talk about strategic applications, according to Carol Reid, sales director for Agile IT, a Microsoft Tier 3 Cloud Champion Member based in San Diego, Calif.

“Whereas before, the IT director was chasing fires and tending to pretty basic plumbing, he now has the bandwidth to pursue truly strategic projects that move the business forward,” Reid said.

The Microsoft-IDC study also found that by 2015, business revenues from IT innovation enabled by the cloud could reach $1.1 trillion a year. In addition, cloud-related jobs will accrue evenly to businesses with 500 or fewer employees and those with more than 500 employees.

IDC expects small and medium-size businesses to adopt cloud services faster than large companies, many of which are constrained by existing legacy investments.

“So when you put it all together, the two trends balance out, and you get a 50-50 split,” says John Gantz, senior vice president at IDC and author of the white paper.

Edited by Carrie Schmelkin

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