The Cloud and the Global Recession

by Abhinna Shreshtha    Mar 02, 2009

What does the economic recession bode for cloud computing? Valentine Sribar, group VP (applications research) of Gartner gives us an analyst s perspective
Cloud computing has been a technology that has been discussed, praised, and criticized in equal measures. Last year, it was cited as one of the top technologies to watch out for in 2009. And then came the economic recession. What does the global recession bode for cloud computing and on-demand services in the coming months? What are the practical applications of cloud computing for enterprises? These are the questions CXOtoday put to Valentine Sribar, group VP (applications research0 of Gartner.
The global recession has made enterprises stingy when it comes to allocating IT budgets. It does not mean that SaaS will gain momentum, what could happen is that enterprises will start looking at on-demand services as a cheaper option to failed or cancelled IT projects, said Sribar.
When it comes to cloud computing, the potential is enormous. However, according to Sribar, it is unlikely that an organization will shift all their business applications to the cloud. What we could see is the less complex and more information-centric processes going to the cloud, e.g. databases. While the more crucial and complex processes, like financial processes, could remain on-premise, he said.