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Why moving to cloud inevitable for all businesses

Why moving to cloud inevitable for all businesses

All businesses will cease to buy servers within 10 years, but the oft-quoted IT budget saving of 26 per cent from a switch to cloud computing comes with some big caveats, Cisco Australia chief technology officer Kevin Bloch has told an audience of mid-market executives.

“That 26 per cent figure that came out of the Manchester Business School is like the dream,” Bloch told the Australian Graduate School of Management’s Mid-Market Growth Forum, part of its Mid-Market Growth Alliance with GE Capital.

“There are legal issues and data sovereignty issues to deal with, and the common complaint that you don’t always get the same love from your cloud vendor as you did from the guy selling you a bunch of hardware.”

He added that Cisco’s salespeople “hated it” when he predicted the imminent demise of hardware purchases by business.

Beyond upfront cost savings, Bloch said there were two inarguable benefits of moving your business’s data to cloud architecture.

One was that monthly cloud storage plans, able to be switched on and off at any time, had shifted all the risk that used to reside with the server-buying business, on to the vendor.

Second, having cloud-hosted data was the best way for mid-market businesses to participate in the “third wave” of the internet already underway: the data-driven ‘internet of things’.

With 50 billion ‘things’ forecast to be networked together – against a current world population of 7.2 billion – Bloch said the ‘internet of things’ was not a concept that mid-market executives could afford to procrastinate about.

“Google’s driverless car passed the Nevada state driving test two years ago,” Bloch said. “This is not something that’s five years out. If your business is not leveraging its data today, it’s like you’ve got a photographic memory but not using it to think.”

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