Wipro Technologies' announcement of a platform designed to offer
software as a serviceadds more momentum to a cloud
computing movement that still lacks a flagship deal.
Most
major IT service providers are developing cloud computing platforms
to enable them to deliver services through the internet.
These
platforms are a necessity for any supplier because cloud
computing is increasingly in demand for delivering IT services. It
takes away the large upfront cost of buying software and the high
cost of maintenance.
Analyst firm Gartner predicts that the worldwide market for SaaS
will be worth $8bn in 2009, a 21.9% increase on 2008.
But the hype needs a benchmark to become a reality.
Big deal
This means one of the big suppliers has to sign a major deal
with a large customer, says consultant Andy Gallagher of Compass
Management Consulting. "People are talking about rolling out the
next generation of software in the cloud, but we have not seen a
large-scale implementation of cloud computing at a customer
level."
He says the ultimate deal that will kick-start the adoption of
cloud services within large companies will need three
characteristics. It will need to be a multi-million pound deal
signed by a FTSE 100 company that provides business-critical
applications in the cloud.
Duncan Aitchinson, head of Europe at sourcing consultancy TPI,
says there are big deals in the pipeline. "There will be some big
deals in the next 12 months that carry the cloud computing
label."
Critical concerns
Peter Brudenall, lawyer at Hunton & Williams, says customers
are asking for advice about potential data protection risks
associated with receiving business-critical applications through
the cloud.
"Businesses will probably start piloting some services, but
probably not business-critical applications."
Robert Morgan, director at Hamilton Bailey, says the middle of
next year is likely to see a number of cloud services projects, but
a large-scale deal is some way off.
A major cloud services deal is likely to be made soon, and once
it does widespread business acceptance will quickly follow. But
suppliers still have work to do in convincing customers that their
data is secure in the cloud.