Will cloud computing services get a boost from low IT spending?

This coming holiday season could be very good for cloud computing companies because many enterprises have scaled back their IT spending . . .
Written by Tom Foremski, Contributor

Will the lack of IT spending provide a boost to cloud computing companies this coming holiday season? It would seem that way.

Retailers and many other companies have to have sufficient computing resources to handle the busiest season of their year. But with many companies cutting back on their IT expenditures over the past year, they will be running the risk of not being able to cope with spikes in demand.

Companies will be looking for ways to deal with this problem and this should translate into an excellent business opportunity for cloud computing services companies.

Terremark, for example, recently introduced its Enterprise Cloud which is designed for enterprise applications.

Terremark and others, offer cloudburst solutions that allow clients to off-load peak computing loads. But this might be a little too risky for some companies. After all, if it doesn't work quite right, lots of their customers will be affected at one of the most important times of the year.

However, off-loading less important applications during the holiday season, to cloud services is a less risky proposition. It frees up computing resources for peak loads while at the same time, it provides IT departments with experience with integrating cloud computing into their infrastructure.

If it all works out, this will create confidence in bringing in more cloud computing into IT strategies and planning. That's why the performance of cloud computing services this coming holiday season could open the way to a lot more business in 2010.

Low levels of IT spending in 2009 could be very good for cloud computing in 2009 and beyond.

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