There has been an increased importance to Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). These have been regarded as disruptive changes in the way technology services are delivered.
Will cloud computing make the traditional outsourcing irrelevant?
Although cloud computing has a disruptive impact on traditional outsourcing, it would not make traditional outsourcing completely irrelevant. Cloud-based offerings are standardised and meant for large number of audiences. Large corporations have their individual requirements that need a customised solution and they also remain skeptical of security issues in public cloud computing. Application Development and Maintenance work is likely to remain relevant for such firms. However, non-core functions, such as Human Resource Management (HRM), have been increasingly moved to cloud.
How will it impact the current licence-based model of software companies?
Cloud-based offerings have a subscription model, where the client pays on a per user basis as against a one-time licence payment in traditional software (which includes licence as well as maintenance charges). For example, in cloud-based HRM software, the client pays based on the number of employees rather than paying the full cost of the software.
What impact Could would it have on Enterprise Application Services ?
A shift to cloud means a shorter implementation cycle and hence lower implementation service charges. The implementation time for cloud-based software is as low as one-third of the time required for traditional software implementation and it typically requires lower standardisation.