“Public Cloud” Popular Choice Among SMEs in the Philippines

According to country manager for EMC Philippines, Ronnie Latinazo, the Philippines is one of the larger markets for cloud computing.

EMC Philippines provides end to end information technology storage solutions to enterprises in the Philippines.

Latinazo explained that because of the cost savings in adopting “public cloud,” it is a popular choice among small and medium businesses.

In a public cloud, a service provider provides the public with available storage over the Internet using resources such as software. Private cloud, on the other hand, is the same service except that private resources such as networks, hardware and software are only exclusively available to the owner.

SMB’s in the Philippines are less worried about moving to the public cloud because they are not as sensitive about the types of information they will migrate to the said service, Latinazo further explained. Countries dominated by large enterprises will be more delayed in adopting cloud computing as they will have more issues regarding the security of moving their data to shared resources, he noted.

However, Latinazo still believes that businesses will eventually adopt a hybrid of private and public cloud services due to cost considerations.

“Historically, we see the adoption of new technology is driven by the need for greater cost efficiencies. The cloud will be no different,” he stressed.

According to EMC, most organizations spend roughly 75 percent of their information technology budgets “just keeping the lights on” with only 25 percent left over for innovation. Cloud computing is expected to free up to 50 percent of this budget for innovation to make enterprises more responsive to their business needs.

In fact, in Singapore, IT spending is expected to grow by 26 percent over the next four years. This could mean a forecasted 30.6 percent growth in cloud-generated jobs for the country.

According to an International Data Corp. (IDC) report commissioned by Microsoft Corp., cloud computing is expected to create over 12,000 new jobs in Singapore by 2015. The report also predicted that cloud computing will create nearly 14 million new jobs globally by then. Revenues from cloud innovation will reach $1.1 trillion per year, the report said.

John Gantz, chief research officer and senior vice president at IDC noted that a common misconception about cloud computing is that it is a job eliminator.

“But in truth it will be a job creator—a major one,” he said.

Gantz also expects job growth to occur across borders and throughout organizations of all sizes because emerging markets, small cities and small businesses have the same access to cloud benefits as large enterprises or developed nations.

IDC’s report detailed how specific industries would generate job growth at different rates. It also said that public cloud investments will drive job growth faster than private sector investments.

In fact, China and India are expected to produce nearly 6.8 million cloud-enabled jobs between 2011 and 2015.

“We tend to think of China and India as emerging markets, but they’re actually early adopters of the cloud,” Gantz noted. “They are not bound to existing systems. They have skipped that step, so there’s less holding them back,” he added.

Article reference – Click Here.



Press release from 2009 is dated but shows the direction EMC has been taking in the Philippines – Click Here.


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