This churn is happening because hardware companies like
Cloud computing means the ability to run a program or application on many connected computers at the same time. This is where many corporates have either migrated to or are in the process of migrating, thanks to the immense cost-benefit ratio. This, in turn, has led to higher level of redundancy among existing staffers, especially hardware engineers.
As of now, corporates have to incur huge maintenance costs once companies like
Well-known companies offering cloud are Amazon,
However, there is a worry about the data security hosted on such servers and controlled by a third party.
"Banks and financial institutions may not opt for such facilities even if costs are low. This is because of data (in)security," said Srinath.
But then, there are companies that could opt for cloud in storing data of non-core areas or businesses, said another industry source.
On employees losing jobs due to cloud, market sources estimate that only 20-30% of those sacked at Dell and
"But then, the same could happen to software too for the same reason, say five years from now," said Srinath, but denied market talk that
Cloud includes software as a service too and many companies including
Certainly this does not sound a death knell for hardware and server-hosting companies like
"There are companies that would not prefer hosting their data on servers somewhere out of their visibility or reach due to security concerns," said Vinod Pisharoti, practice head, logistics & surface transport, NIIT. 'Big companies with global operations that had to buy and host applications at local or regional levels, are now doing away with it to cut cost and prefer pay-per-use service providers like Amazon," he said.
The worry for hardware engineers, however, remains unless they change course towards specialisation.
"Your car is no longer a motor car, at least 30% of the engine is integrated with IT, so is your refrigerator... all are getting integrated with one another in some way; and the computer becomes a major conduit,'' said Srinath.
Cloud remains the next big thing where softwares as well as hardwares are leased out. Email is free as of now, but if it becomes chargeable, the software is offered as 'cloud'.
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