Study: Economic Conditions Leading Large Firms to Adopt Cloud Computing

Photo: talkincloud.com

During the financial crisis in 2008, small and medium-sized business shifted to cloud computing to reduce costs. Due to the recession, large firms will quickly follow suit this year and next year, according to an article on ZDNet.

Software as a service also means shifting away from capital spending, where firms build their own infrastructures, and moving towards monthly expenses from simply subscribing to software.

“We continue to extend our cloud capabilities, and are seeing increased demand for software-as-a-service,” Accenture CEO Pierre Nanterme said in September, according to ZDNet. “We’re doing one of the largest global software-as-a-service implementations, involving work in 70 countries and almost 20,000 users.”

Cloud computing firms Rackspace, NetSuite and SuccessFactors, were highlighted in the article as success stories and evidence that cloud computing may be recession proof.

Oracle CEO Larry Ellison had championed cloud computing, then followed up with the company’s acquisition of RightNow (see our story on the acquisition here).

“Obviously Oracle’s acquisition of RightNow is a huge validation of what’s going on in this market and we’ve known that from day one,” said SuccessFactors CEO Lars Dalgaard.

“And it’s been 10 years that we’ve been in the cloud, but it is clear that legacy vendors have not been able to do it themselves and we have a unique opportunity to take this leadership and go very deep in these accounts everywhere we go in the world,” said Dalgaard.

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