More companies ‘moving to cloud this year’

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Wednesday, February 19, 2014

MORE local companies will migrate to the cloud this year to improve operations, a top official of an IT service provider said.

DataOne Asia President and Chief Executive Officer Cyril Rocke expects cloud computing to gain wider acceptance in the country as more industries migrate to the cloud.

He noted that in the Philippines, cloud computing’s acceptance by enterprises is increasing faster. Companies and individuals who use the cloud rely on remote servers hosted on the Internet, instead of local servers, to store and process data.


“I’m not saying that all the companies will go for it, but we see from a lot of different industries the demand and acceptance for Cloud,” said Rocke in a press statement. He explained this is because companies are seeing more benefits beyond cost and performance.

Industries that need to adopt cloud technology are those that involve a large number of transactions such as companies in retail, logistics, and banking, he said.

“If you’re a logistics company, there’s a lot of movement of goods to be delivered quickly, frequently, and precisely. Due to the nature of this industry, network security and speed of computing infrastructure are key because you need to scale or increase your capacity quickly on demand,” he explained.


Rocke, who is also the president of the French Chamber of Commerce in the Philippines, also anticipates new global players will emerge in cloud services this year, as well as the formation of partnerships between traditional hardware vendors and new cloud providers.

The emergence of new major cloud providers such as Google to compete with Amazon, Rackspace and other players is expected, he said. He also expects IT infrastructure to be standardized globally and that more enterprises worldwide will continue to turn to the cloud for their IT computing needs.

“This is the major trend and I see that this is accelerating,” he said.

According to Rocke, the cloud’s impact was already felt in 2013. He observed a drop in sales in large hardware manufacturing as enterprises slowly migrated to the cloud.

“At the same time, the large traditional hardware vendors like IBM, HP, Dell, and others are using various strategies to enter the cloud. We see convergences between them and new emerging cloud providers,” Rocke said.

Although he expects a higher demand for data center services and cloud infrastructures in 2014, Rocke clarified that it doesn’t mean needing larger data centers because a lot more computing power can now be delivered through the Cloud.

“Now, you can have access to your data at a very low cost with limited entry barriers,” he said.

Rocke believes increasing reliance on cloud computing will open a lot of new services and opportunities.

“What we see is that a lot of other aspects of life can be automated from the Internet like having an IP address for equipment to be able to locate them, anticipate their condition, and do preventive maintenance. This is probably something that will create more businesses, as I see it, in the short term,” he said.

Published in the Sun.Star Cebu newspaper on February 20, 2014.


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