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Coronavirus could 'expose limitations of the cloud'

(Image credit: Image Credit: Rawpixel / Shutterstock)

Many technology, media and telecom (TMT) sectors will be negatively impacted by the outbreak of the coronavirus, claims a new report from GlobalData.

The data and analytics firm says the economic fallout of the crisis will have “major implications” for enterprise consumption of IT and cloud computing resources.

For Chris Drake, Principal Analyst, Global IT Technology and Software at GlobalData, the crisis will impact different verticals in different ways.

“For some, it will create a slump in demand and the postponement of key IT projects. For others, it is likely to spur demand for cloud computing and other IT solutions, including edge computing, as organisations accelerate and adjust their digital transformation strategies.”

Drake adds that the importance of cloud has been made abundantly clear, now businesses have been forced to close down physical premises. “Any organisation that actively resisted digitalisation is now confronted with a harsh reality. This puts cloud providers in a strong position," he said.

Most businesses have been forced to close their offices and ask employees to work from home as a result of the outbreak. Besides the strain this places on both infrastructure and management, it also opens new avenues for cyberattackers.

Hackers and other cybercriminals have actively abused the global trend, distributing malware posing as healthcare guidelines, attacking hospitals and even tricking victims into believing they could stay healthy by downloading a Windows app.