Does the Cloud Really Make It Rain? Jobs, That Is.
According to the results of a study released today by the Sand Hill Group and commissioned by the software giant SAP, cloud computing is a powerful engine for job creation. In 2010 alone, 11 different cloud computing outfits created 80,000 U.S.-based jobs; cloud-related jobs at these firms grew at a rate that was five times that of the overall tech sector, and they could create a total of 472,000 jobs in the U.S. and overseas by 2017.
The study also found that cloud companies expect their revenue to grow — no surprise there. But the amount is eye-popping: $20 billion per year for the next five years. Add the interest of venture capitalists, who are expected to pour $30 billion worth of investments into cloud companies over five years, and you get an additional 213,000 U.S.-based jobs over five years, the study found.
And businesses that embrace the cloud will save big, the study says: $625 billion over five years, much of which can be reinvested in other things.
Generally speaking, the study validates what many in and around the cloud-computing business have long suspected intuitively, but never really laid out in one place. The full report (PDF) is mostly a gathering of data from reports put together by Gartner, McKinsey & Company and IHS. Even so, altogether it stands out as a nice summary of what’s good about the cloud.