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Cloud computing is evolving, putting pressure on software industry to transform

By Gavin Kilfoil, sales director of Softworx

Johannesburg, 03 Nov 2011

Cloud computing is evolving. "The merging of different technologies, the need for economies of scale and data on demand, growing IT skills shortages, social network advantages, and a new generation of users demanding more flexibility and higher service levels make up some of the main factors driving the evolution and development of cloud computing, and ultimately placing pressure on the software industry to change with it," says Softworx sales director Gavin Kilfoil.

"Most top enterprise software companies are bringing out their own cloud application versions in some form at the moment. The services that software companies are offering and delivering today will need to improve to make implementation faster as customers begin to look at implementing cloud computing technologies even before their annual software upgrade," says Kilfoil.

"A new utility model will also need to be introduced detailing how cloud computing is billed. Cloud computing is mainly a pay-per-use or on-demand self-service model at present. This pay-per-use utility model will mean that software licensing models will need to change. Applications, database and operating systems costs will also change, and we expect that software licence revenue will decrease as these models are implemented," says Kilfoil.

On the whole, application systems as we know them today will become smaller and will consist of components in the cloud, which can be regularly and easily upgraded, with customers having constant access to the cloud network. The real advantage is that these components will come from different suppliers, allowing the customer to choose what small "app" is best for their business.

In the interim, as the software industry gears up to offer its evolving cloud computing technologies, customers should begin developing a migration plan detailing how to migrate their existing systems into the cloud network. Software customers should also adopt new security policies for their applications and look at return on investment models and other long-term IT goals. It is important that customers identify the most mature cloud computing service offerings available and lead their implementation with the less important IT systems first, in order to mitigate risk as they migrate onto the cloud network," concludes Kilfoil.

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Softworx

Softworx is a successful South African business applications company that prides itself in being able to deliver world-class products to its extensive customer base, which includes a number of Fortune 500 companies. In addition, Softworx supports clients in industries ranging from manufacturing, retail, distribution and financial, to supporting various government entities. The company is dedicated to marketing, implementing and providing support for its range of complimentary software products to medium and large enterprises that require effective solutions to optimise their business processes.

Softworx has positioned itself as a leading provider of business applications in South Africa, specialising in end-to-end business solutions. The company prides itself on being able to deliver true value to its customers through the implementation of business solutions based on a powerful combination of leading edge products and consultancy. As a wholly owned subsidiary of EOH, Softworx has increased the number of services and products that can be offered to its customers from within the group.

EOH

Listed company EOH is the largest enterprise applications provider in SA and one of the top five IT service providers. EOH follows the consulting, technology and outsourcing model to provide high value, end-to-end solutions to its clients in all industry verticals. For more information, visit: www.eoh.co.za.

Editorial contacts

Tandi Robertson
Watt Communications
(011) 425 6290
tandi@wattcommunications.co.za