Infrastructure

11:50 AM
Melanie Rodier
Melanie Rodier
Commentary
Connect Directly
Facebook
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%

Report Claims Cloud Will Add 1.4 Million New Jobs To Banking Industry

Still, Microsoft’s report, like other IT vendors’ reports, should be taken with a grain of salt.

Banks could add up to 1,425,402 new cloud-enabled jobs by 2015, according to a new report from IDC and Microsoft. The research also claims that the cloud will generate nearly 14 million vertical industry jobs worldwide from 2011 to 2015 and that cloud computing could drive an increase in revenue of $1.1 trillion a year by 2015.

While cloud computing, due to its economy of scale, can free up banks’ resources which they can then dedicate to mission-critical tasks, and a number of jobs are certainly created by any new technology, a jobs bonanza due to cloud computing does sound a little over-optimistic.

Microsoft’s report, like other IT vendors’ reports, should be taken with a grain of salt. After all, vendors who commission their own research findings also have their own agenda.

For one, Microsoft is currently investing billions of dollars into its Azure cloud platform data centers while also building private cloud technologies into Windows Server 8.

Rob Preston, editor in chief of InformationWeek, notes in an editorial titled IT Vendors Inflate Job Creation Claims : “IT vendors and policy makers are taking credit for creating many millions of new U.S. jobs, even as the national unemployment rate hangs at a disconsolate 8.3%. Are other parts of the economy really losing jobs as fast as the tech industry is spawning them, or are these job-creation claims at best overstated and at worst a bunch of bunk?”

Preston points out that Microsoft and IDC’s argument is that by lowering customers' IT costs, cloud computing will free up funds for new business investment and innovation that ultimately will add jobs.

“Left out of their analysis is the fact that those efficiencies are achieved mostly through infrastructure consolidation, which eliminates IT jobs even if it spawns jobs elsewhere,” he notes.

Technology undoubtedly does create millions of jobs in the U.S. and elsewhere. But claiming that latest technologies such as cloud computing or big data are solely responsible for creating millions of jobs sounds like an oversimplified solution to the nation’s complex economic troubles.

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio
Comment  | 
Print  | 
More Insights
More Commentary
Interactive Data Launches Continuous Fixed Income Pricing Service
Independent intra-day FI pricing is helping to shine light on the opaque fixed income market.
Gartner: 75% of Mobile Apps Will Fail Security Tests Through 2015
The rise of BYOD means enterprises must implement security testing and containment solutions, according to new Gartner research.
Chip & Pain, EMV Will Not Solve Payment Card Fraud
Switching to EMV cards will lower retail fraud, but it's not enough. Here's the good, the bad, and the ugly.
With UCITS V, $9T Isnít as Easy as It Used to Be
With UCITS V's restrictive remuneration rules and hidden costs, going global may get a little less attractive.
Banks to Increase IT Spend on Big Data Challenges, Finds Aite Report
Big data has presented the greatest challenges and dissatisfaction for banks, yet it is the most likely to see upward spending in the next two years.
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - Elite 8, October 2014
The in-depth profiles of this year's Elite 8 honorees focus on leadership, talent recruitment, big data, analytics, mobile, and more.
Video
7 Unusual Behaviors That Indicate Security Breaches
7 Unusual Behaviors That Indicate Security Breaches
Breaches create outliers. Identifying anomalous activity can help keep firms in compliance and out of the headlines.