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Cost-saving benefits of the cloud to be seen in 2011

Rachel Wheeler Archive
Organizations looking to utilize cloud computing software are unlikely to see the full cost-saving benefits until the technology has been fully deployed, it has been claimed.

This is the view of Dr John Bates, chief technology officer at Progress Software, who believes that the savings offered by the database management tools will begin to become more apparent in 2011 as cloud computing becomes more common place.

"Cloud computing is simply a natural evolution of virtualization, service-oriented architecture and utility computing," he explained.

"Only when cloud technology is fully deployed in the enterprise space in 2011 will organizations start to witness the cost-saving benefits."

Meanwhile, the comments follow a recent survey by independent research firm Gartner which suggested that revenue from the global software as a service (SaaS) within the enterprise application market will continue to grow this year.

The market is projected to expand by 16.2 per cent in 2011, with the total revenue collected expected to reach $10.7 billion, the body claims.

Posted by Rachel Wheeler