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Report Says: Millions of New Jobs Coming Thanks to Cloud Computing

by
John Zappe
Mar 26, 2012, 2:49 pm ET

Cloud computing is predicted to spawn millions of new jobs in the next few years in and outside of IT as companies moving to the cloud redeploy the money they now spend to maintain in-house systems.

Global tech research and advisory firm IDC says by the end of 2015 almost 14 million new jobs will be created by the shift to public and private cloud services. Most of those new jobs will be outside the U.S. and Canada; China and India will see much of the growth. IDC predicts those two countries will share 6.75 million new jobs. North America will get 1.2 million new jobs, most of them in the U.S.

Underwritten by Microsoft, the IDC research says the nascent cloud-computing movement “already has begun changing how IT delivers economic value to countries, cities, industries, and small businesses. This is because cloud computing comes with unique economic leverage that means a little money spent up front leads to impressive returns down the line.”

IDC predicts that half the new jobs will go to small and mid-sized businesses, in part because they’ll move to the cloud more rapidly than large firms, which have invested in on-premises, enterprise systems. Smaller firms are also more plentiful, including in some of the industries IDC expects will be the largest beneficiaries of the job growth, though their IT spending is significantly less than it is at larger firms.

While nearly all industries will add jobs as a result of the cloud computing movement, IDC says the banking, communications and media, and discrete manufacturing will each add at least a million jobs by the end of 2015. The two former segments, though slow to adopt cloud computing, will generate more jobs than the early adopters “because they are big segments and spend a lot on IT.”

These new jobs will come about through IT innovation; time and money now spent managing in-house systems will be freed up for other projects. “The basic rationale for job growth is that IT innovation allows for business innovation, which leads to business revenue, which leads to job creation,” write the study authors. Rather than eliminate IT jobs, the authors report that CIOs “look at migration to cloud computing as a way to free up existing resources to work on more innovative projects.”

According to the IDC research, “Increased business revenue from the IT innovation enabled by cloud could reach $1.1 trillion a year by 2015 across the countries studied.”

This article is provided for informational purposes only and is not intended to offer specific legal advice. You should consult your legal counsel regarding any threatened or pending litigation.

  1. Keith Halperin

    Thanks, John. Let’s assume a bit over 1M of those North American jobs are US, so that’s about 350,000/yr, or ~30,000/mo. Are there 30,000 people/mo with these skills coming onto the market? ISTM that unless these new jobs hire the people who aren’t currently working (either un/deremployed with different skills or currently in school) this will be pretty much “robbing Peter to pay Paul”, i.e., not very many net new hires.

  2. Report Says: Millions of New Jobs Coming Thanks to Cloud Computing – ERE.net | Get Free Software

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  3. Daily Tickr: New Report Shows Millions of Jobs Will be Created Thanks to Cloud Computing | jobtrakr

    [...] If you haven’t heard of cloud computing, you would be in a very small minority.  ”The Cloud” as it is affectionately known is in the process of becoming a jobs growth machine.  A recent study by IDC shows that cloud spending in 2011 was $28 billion and generated $400 billion in revenue.  The net result was 1.5 million jobs created.  By 2016, the number of new jobs created by the cloud will be in the neighborhood of 8.8 million. The amount of IT innovation that is a by product of cloud services frees up capital for other projects, which in turn leads to the jobs growth that is anticipated.  [Source: ERE] [...]

  4. Bill Gallop

    Where are these people going to come from? The schools are not teaching this…

    The industry is already in a job boom now. Unemployment for most Technology areas (CA, DC, TX) are near historic lows. I recruit for these type positions everyday. The people are not available now!

    BILL GALLOP

  5. Gerry Crispin

    John, the article has legs but only if we examine who and where these folks that are going to be hired really are. Keith and Bill rightly point out that an article about ‘creating a million jobs’ is really misleading if there is no one to fill them or, if the only people who can fill these spots are already happily employed in current technology positions.

    I think it is appropriate that you pointed out that 80% of them will be outside of the US but unfortunately, the gap within the US is more likely to be filled by efforts in other countries to meet this need than by our own efforts.

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