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2011: The Year of the Cloud

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This press release from the International Data Corporation out today makes the case that cloud computing, along with mobile computing, social networking, and big data analytics technologies, have all seen an increase IT spending this year. According to research spending in these areas is increasing by 18% yearly. It is predicted that 80% of all IT spending will be in these areas by 2020.

A year ago, “Cloud Computing” and “Software as a Service” were ideas that needed a little more explanation. But now, they have become mainstream to the point where legacy systems, based on building and maintaining in-house IT infrastructure are beginning to feel the heat. Or in the words of Frank Gens, IDC’s chief analyst, who led the study: “The incumbents are facing a huge transition.”

The reasons for companies switching to Software as a Service are many. Some of the reasons were explored in an earlier post on this blog. But the bottom line is: It is cheaper and easier to implement a SaaS platform in almost every case. Another reason why SaaS is the chosen solution for businesses of all sizes is that increasingly, business problems have almost purely technological solutions. Using Software as a Service gives companies the ability to leverage turnkey solutions to common challenges.

One great example of Software as a Service is Lead Management Software. A lead management system with an integrated lead dialer such as the one offered by Leads360 solves the problem of how to contact leads as quickly as possible after they have submitted an online inquiry. When this speed-to-contact solution was developed as part of the lead management platform and made available to clients, lead contact rates for clients were boosted significantly. The advantages enjoyed by the companies who quickly reach prospects are well documented.

This is just one example of how a cloud computing solution benefits its customers by creating features that solve business problems. Software as a Service providers only succeed when their customers succeed, so consider SaaS not only a cheaper and easier version of in-house IT infrastructure; consider it also as a business partner with vested interest in your success.

Pass the Beans!

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