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Cloud computing is "an evolution in business"

01/12/2008

The increasing importance of cloud computing "is heralding an evolution in business", according to one expert.

Writing in the Hindu, a leading Indian national daily, David Mitchell-Smith argues that cloud computing and the use of web-hosted software solutions will see businesses evolve in a fashion that is no less significant than the e-commerce revolution.

Mr Mitchell-Smith said that virtualisation, service orientation and the internet mean that businesses could increasingly turn towards web-hosted software services, paid for on a subscription basis like gas or electricity bills.

He added: "The buying decision then shifts from buying products that enable the delivery of some function (such as billing) to contracting, with someone else delivering those functions."

Mr Mitchell-Smith writes that such a system could bypass the constraints of traditional hardware and software licensing models.

Earlier this month, software giant Microsoft announced the launch of the web-hosted version of Microsoft Exchange and Microsoft Sharepoint, two of its most popular business applications.
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