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Cloud Computing Vital For Enterprises Says Big Blue

Organisations that don't adopt cloud computing technology will lose out on crucial resources in the future, IBM has warned.

Speaking at the Interop Las Vegas 2010 conference at Mandalay Bay, IBM's chief technology officer for Cloud Computing, Kristof Kloeckner, said that businesses adopting cloud computing infrastructure will be able to enhance their operations, cut costs and capital expenditure, increasing their profitability.

Kloeckner told attendees at his keynote address that "Cloud economics and technologies are real. It's a fundamental shift in how you can deploy and deliver IT services. The big switch is that customers and IT organizations now have choices about how to source and deploy IT services."

According to statistics provided by Kloeckner, companies that adopt to cloud computing infrastructure via remotely managed and maintained servers succeed in cutting information technology labour costs by almost 50 per cent.

Cloud computing is capable of reducing a company's capital expenditure by up to 75 per cent, and can reduce provisioning time from weeks to minutes, he told delegates.

IBM says organisations that had already adopted cloud computing included the Bank of Tokyo and the United States Air Force.