Cloud Computing Industry can create jobs and restore competitiveness - Goodbody Economic Impact report

Microsoft Commissioned Report shows Cloud Computing to create €9.5 billion in Irish sales annually

Cloud Computing can be the new IFSC if the incoming Government moves quickly to implement the correct policy requirements to deliver it.  Cloud Computing will revolutionise technology the way that the internet did.  As this global industry is in its infancy, Ireland has a real opportunity to pioneer its adoption to create new jobs, new businesses and enhance our competitiveness while attracting FDI and creating new export markets. If the correct steps are taken now, Ireland could be home to the next Facebook or Salesforce.com.

Paul Rellis, Managing Director, Microsoft Ireland

Ireland has the opportunity to create jobs and help restore competitiveness if it moves quickly to establish Ireland as a Global Cloud Computing Centre of Excellence, according to a report commissioned by Microsoft Ireland and compiled by Goodbody Economic Consultants published today.  Making this move would enable Ireland to capture a disproportionately large share of the global Cloud Computing market estimated to be worth €40 billion by 2014.  The findings are contained in the report entitled Ireland’s Competitiveness and Jobs Opportunity:  Cloud Computing.

The key findings of the report include:

• Cloud Computing is a major evolving industry that has the potential to create €9.5 billion in annual sales per annum by 2014, providing 8,600 jobs. 
•  In addition, because Cloud Computing lowers costs to businesses, by migrating to the cloud the report estimates the establishment of an additional 2,000 new non-IT small and medium businesses employing 11,000 people.  
•  Early adoption of Cloud Computing by Irish users will take costs of €0.5 billion per annum out of Irish organisations.

Cloud computing offers major benefits to the public sector as it will lower the cost of delivery while improving the quality of services to citizens.  It allows the public sector to meet peak demands easily that require enormous computing power and without loss of services.  It also has the potential to transform education delivery as it facilitates sharing information and collaboration between disparate groups.

Paul Rellis, Managing Director, Microsoft Ireland said, “Cloud Computing can be the new IFSC if the incoming Government moves quickly to implement the correct policy requirements to deliver it.  Cloud Computing will revolutionise technology the way that the internet did.  As this global industry is in its infancy, Ireland has a real opportunity to pioneer its adoption to create new jobs, new businesses and enhance our competitiveness while attracting FDI and creating new export markets. If the correct steps are taken now, Ireland could be home to the next Facebook or Salesforce.com.  However, the race is on globally and if we do not act immediately the opportunity will be lost.”
In order to deliver on the opportunity presented by Cloud Computing the report makes a number of recommendations:
 

• Organise Government Agency Supports into a Cloud Cluster Programme to attract FDI and provide access to new markets
•  Implement a high profile Government Cloud Computing project to showcase Ireland’s expertise globally
• Close the gaps in awareness of Cloud Computing in Public and Private Sector 
• Prioritise development of skills to support the Cloud Industry
• Promote cloud computing to small businesses and start ups

Barry O’Leary, CEO of the IDA welcomed the publication of the reporting saying, “Microsoft and Goodbody’s are to be congratulated on this piece of research and I warmly welcome the publication of this report. As an organisation that bridges both private and public sector we agree that Cloud Computing will have significant future economic impact. IDA had identified Cloud Computing as one of the key technology trends within our recently published strategy document Horizon 2020. The potential to internationalise service offerings to a global client base from Ireland is a very attractive proposition for foreign investors.” He added “ We would hope to see an increasing cluster of cloud computing comprised of both foreign and indigenous companies helping increase Irish exports and employment in the medium term”.

To view Ireland’s Competitiveness and Jobs Opportunity:  Cloud Computing.pdf

About Cloud Computing:
Cloud Computing will revolutionise how businesses and public sector organisations run their operations and deliver products and services.   Cloud computing moves technology infrastructure into data centres where information is managed, secured and delivered to users as and when they need it.   For example, users of Hotmail from Microsoft, Facebook or YouTube are using an application that runs on a remote server and which they access as and when they need it and from any internet device.

The Cloud Computing Industry is developing this trend for business and public sector and will eventually deliver computing as an on demand service, similar to gas or electricity.    Cloud Computing is considerably cheaper than conventional approaches to computing. Providers of Cloud Computing services benefit from significant economies of scale in providing IT resources to their clients. In addition, the Cloud Computing approach leads to very efficient use of these computing resources. The advantages of Cloud Computing for users will go far beyond simple cost savings. With this new approach, computing moves to become an operating cost rather than a capital cost.