How Cloud Technologies and Cloud Companies Have Affected the Economy

Way back in the 1960s the first concept of cloud computing was born.  The idea was for a system through which people around the world could be interconnected and have access to programs and data from anywhere.  The actual term ‘cloud computing’ was first used by Professor Ramnnath Chellepa in 1997.

Way back in the 1960s the first concept of cloud computing was born.  The idea was for a system through which people around the world could be interconnected and have access to programs and data from anywhere.  The actual term ‘cloud computing’ was first used by Professor Ramnnath Chellepa in 1997.  Salesforce came on the scene less than two years later as the first cloud company.  They debuted a platform for delivering business applications which is now the basic model being offered by most cloud computing organizations today.  With all the technological advancements in the Cloud, let’s take a look at how the Cloud has transformed the business world today.

The economy of the cloud

With businesses and consumers using and participating in cloud-based technologies more often, the economic impact has become an unmistakable juggernaut in itself. In 2015 alone, there was a 74% increase in both private and public cloud usage by businesses. Cloud computing spending by small businesses will reach $16 billion in 2015. By 2020, cloud computing is anticipated to be a $270 billion dollar industry.  Service apps will be the largest cloud service by the end of 2015, reaching an estimated $67.4 billion.  As you can see these are staggering numbers.

The cloud saves money

The Cloud is also saving everyone from small business and to the U.S. federal government money. It saved $5.5 billion per year by turning to cloud-based platforms, and 64% of private companies have reported reduced waste and lowered energy consumption since shifting to the cloud. Businesses also report improved security, service availability, increased data efficiency, lower operating costs and transformative impacts on their operations.

The cloud creates jobs

As the cloud economy grows, so does the job market.  24% of businesses report that they are now hiring candidates with cloud computing experience and 3% report that they are engaged in replacing staff who do not have cloud experience.  The top 5 cities for cloud computing jobs are New York, NY, Washington D.C., Chicago IL, San Francisco CA, and San Jose CA. The most in-demand skills for cloud computing jobs are SQL, Java, App Development, Linux and JavaScript.

How the cloud unknowingly impacts consumers

95% of Americans are currently using the cloud in some way or another, while only 29% of Americans report actually using the cloud.  14% have pretended not to know what the cloud is and how it works during a job interview. 10% have never even heard of the cloud.  This suggests that most cloud users in the U.S. simply don’t realize that commonly used applications are cloud-based. Common examples of using the cloud are Netflix, Xbox Live, Spotify and Hulu. 

As you can see, cloud computing has a huge impact on the economy and how we use things in our daily lives, whether or not we are aware of it.  To learn more about how cloud technologies and cloud companies affected not only the economy but also our personal lives, check out the infographic from Soliant Consulting below.