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Telstra adds one million mobile services, but Sensis plummets

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Cloud computing hype clouds the picture

Business IT - Technology

The hype surrounding cloud computing is seemingly more hype than substance at this stage, with potential adopters holding off because of confusion about its potential benefits.

While IT service providers continue to invest in cloud computing offerings at an “impressive pace”, according to Ovum, apparently the hype itself is leaving many customers confused about the benefits, even as vendors try to differentiate their product.

Ovum principal analyst, John Madden, says services vendors are attempting to “differentiate their cloud computing services for customers through their use of technologies such as virtualization and their IT service delivery experience,” and by demonstrating the “positive impact of leveraging cloud services’ during a recession.”

According to Madden, cloud computing continues to dominate discussions among enterprise IT customers as they look for better and more cost-effective ways to operate and deliver IT services.

“Although cloud-based services hold great promise for customers and the vendors that offer them, for the vast majority of enterprise customers there is still far too much hype surrounding what constitutes a cloud, the kind of services that can be delivered and how those will ultimately evolve.”

Despite that hype, Madden says cloud services continue to attract widespread customer attention – if not actual adoption -- due to its potential to provide variable costs, reduced capital expenditures, and provide an ability to match IT resources to real-life business needs.

In addition, for various types of services providers -- including traditional services players, outsourcers and telecom/network operators offering enterprise-class services – Madden says that the evolution of the cloud computing market can bring “distinct opportunities and challenges for each type of vendor.

“However one views the cloud market, service providers want to remain active participants in the evolution of cloud services,” Madden suggests.

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