Forbes contributor Joe McKendrick recently detailed a study conducted by Rackspace Hosting and Manchester Business School, which indicated that cloud computing is not merely providing existing organizations with substantial savings and increased flexibility, but also driving the emergence of the next generation of startup companies. Furthermore, with the time and money saved by adopting cloud services, startup companies are able to funnel more resources into producing enterprise-quality software.
The survey was comprised on insight from 1,300 U.S. and U.K. executives, and it found that 62 percent of respondents either completely or somewhat agree with the statement, “Cloud computing is a key factor in the recent boom of entrepreneurs and startups.”
“[C]loud computing may be a shot in the arm our economy needs, because it enables entrepreneurs and innovators to start up new ventures with minimal capital requirements – most of what they need is now available as online services, sometimes at no cost,” wrote McKendrick. “As we ponder unemployment and underemployment in our economy, the availability of cheap cloud computing may be laying the groundwork for a startup boom, the likes we have never seen before. This applies to departments of larger organizations as well – designing new products, without the need to go through corporate finance and IT approvals definitely is a great way to instill entrepreneurial spirit.”
In a recent Property Casualty 360 article, contributor Michael A. Jackowski indicated that when used with mobility and advanced analytics with an online database, the cloud is changing the values that companies can offer their customers. While Jackowski was discussing the insurance companies in particular, comparable effects can be observed across a wide variety of industries.