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
Shared Reporting Services on the Horizon, Genpact Predicts
The financial services industry is starting to adopt shared services, resulting in reasonable impacts to the bottom line. Genpact expects a push for reporting efficiency will come next.
Don't Let the Cloud Rain on Your Operations Strategy Parade
Avoid migrating large applications all at once to minimize risk during a cloud project.
Could Intel Lose Data Center Market Share to ARM Chips?
ARM chips could be an alternative for certain purposes in the datacenter, but many questions have to be answered before they pose a threat to Intel's market dominance.
Cost to Trade: Hey, Banks, Itís Time to Face the Music
Why is calculating the cost to trade so difficult for banks? The answer is as complex as the calculations themselves.
M&A Activity Will Continue to Grow in 2015
Data shows that the M&A market continues to improve, and forecasts indicate deal making will be healthy in 2015.
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.