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Is the cloud just hype or are some missing the boat? February 15, 2011

Posted by Mark Hillary in IT Services, Outsourcing.
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I was out in Mumbai recently for the annual Nasscom conference. Nasscom is the hi-tech trade association in India and their annual leadership summit each February defines not only the direction of the industry in India, but for many regions around the world.

In fact, there were 35 other countries represented at the Nasscom event, some just as delegates, but most with an official party speaking and representing the advantages offered in their region so this has become quite an international event.
The industry in India has grown by some 23 per cent in the past year so there is strong optimism that IT firms and the BPO service players are back on a growth track again after a few years of recession. This is backed up by new orders being placed, but I wonder if there is some troubled times ahead for some of the big players in India?

One of the key topics being discussed in India was the cloud. It’s a topic that divides commentators, but what is clear is that some service companies have embraced it. Just look at firms like Salesforce.com, who are now moving beyond their CRM roots into all aspects of cloud-based services.

But many have not.

I asked several of the more traditional systems integrator firms what they think of the cloud and the opportunities it may offer them, and despite the threat to their own industry, many just rejected it as hype.

The firms making a killing today on software upgrades are going to have to evolve or die in an environment where IT systems can be paid for only as they are used – but some still seem to have their head in the sand.

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