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The ongoing Global Financial Crisis (GFC) has also had a significant impact on some of the developments in our industry — for example, cloud computing.
It looks as though the GFC is the key reason that developments in cloud computing have not happened more quickly. Industry evidence suggests that shifting to the cloud saves 20%-50% off current IT deployments, and, according to its advocates, it can be many times more than that.
Since cloud computing also involves saving capex and reduced opex, the switching costs to cloud computing are relatively low. It is even possible to run existing systems parallel to cloud computing, which makes migration easier. However, rather than picking up pace, growth has slowed.
Now on to one of my colleagues, Tim Cowen Chairman, opencomputingalliance.org he has made some suggestions as to why this might be happening:
The lack of investment can't go on forever, and with all that cash on balance sheets, M&As will boom before dividends increase.
Also, at a certain stage shareholders will start challenging management to go for more of a growth profile. Stability and safe investments aren't enough for portfolio managers, where some risk is needed in the mix. However the question is: when will this start to happen?
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