The Impact of Cloud Computing on CRE

by CoyDavidson on December 11, 2011

So what is cloud computing? Cloud computing allows anyone from individuals to enterprises to use internet based software and data storage in lieu of their hard drive. Cloud computing is moving the emphasis from hardware to high speed internet channels. It is estimated by industry experts that by 2015, almost 75% of company applications are going to be housed or aligned in the cloud.

Cloud Computing and Workplace Strategy

The cloud plays a vital role in personal and employee development and is improving work/life flexibility and adding to overall productivity levels. The cloud makes it easier to work, communicate and stay informed from anywhere with internet access, meaning you won’t have to be tethered to your desk.

The benefit of cloud computing for startups and small business are improved collaboration, accelerated  speed to market and lower upfront capital costs for IT infrastructure and from a real estate perspective there is less of a need for an assigned employee workspace or a single office location. Many small business have reported marginal cost savings from adopting a cloud computing strategy.

The benefits of cloud computing from the larger enterprise sector can be magnified but more challenging to implement. Cloud based software improves communication among teams and enables mobile devices to serve as the office cubicle of productivity which can have significant a significant impact on the total real estate footprint.

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Ultimately, the cloud isn’t magical as the data is housed on a server somewhere in a data center, either public or private. A private cloud requires investment in data centers whereas as public source is dedicated to serve many clients some who may be direct competitors which creates security and reliability concerns.

The adoption of cloud computing is expected to accelerate as the trend toward a virtual work environment evolves creating a whole new set of real estate decisions for the corporate enterprise.

CSC commissioned a survey of IT decision makers in eight countries to find out the motivations behind their move to cloud computing systems and its effects on their businesses.

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