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Cloud Computing Flagged as Biggest Shift in NFP Use of Information Technology


Thursday, 8th December 2011 at 11:47 am
Staff Reporter
Cloud computing has emerged as the decade’s biggest shift in the way organisations use Information Technology according to a report to the Federal Government - and Not for Profit organisations have been urged to get on board.

Thursday, 8th December 2011
at 11:47 am
Staff Reporter


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Cloud Computing Flagged as Biggest Shift in NFP Use of Information Technology
Thursday, 8th December 2011 at 11:47 am

Cloud computing has emerged as the decade’s biggest shift in the way organisations use Information Technology according to a report to the Federal Government – and Not for Profit organisations have been urged to get on board.

Australia's IT sector can be a global leader in developing cloud computing to drive innovation and national productivity gains, a report from an information technology (IT) industry advisory body has told the Federal Government.

And a local IT experts say cloud computing can benefit a Not for Profit organisation’s productivity and systems.

The report to Government, called The Cloud Computing – Opportunities and Challenges Paper says cloud computing is a rapidly emerging area with immense potential to help Australian business transform: but it also presents challenges.

Releasing the report by the Australian Government's Information Technology Industry Innovation Council (ITIIC), Innovation Minister Senator Kim Carr said it highlights Australia's strengths.

"Australia has an opportunity here, to develop a strong local capability in cloud computing. We are a safe, secure destination for hosting cloud data applications, and offer political stability, and a stable and transparent regulatory environment," Senator Carr said.

Australian-based cloud services may also have an edge in relation to critical issues raised in the report, such as risk management, sovereignty, data security, privacy and service quality.

Cloud Computing lets an organisation use files and applications over the Internet.

The report says a September 2011 survey of enterprises in Australia found that 20.6 per cent of the respondents are already using Cloud computing, while 38.2 per cent are actively testing or planning to deploy Cloud services in the next six to 12 months. A further 41.2 per cent of companies are planning to implement Cloud services by 2013.

Some of the business benefits of cloud adoption include operational efficiencies, greater reach into markets, cost reduction, reduced risk of IT investment with pay-as-you-go pricing, and greater flexibility to handle changes in business conditions.

Senator Carr said the newly formed Global Access Partners (GAP) National Standing Committee on Cloud Computing – comprising Federal and State government agencies, industry leaders, the research community and advocacy groups – will discuss issues raised by the ITIIC further.

A Sydney Executive Breakfast session today, by IT&T company Digital Armour, on Demystifying Cloud Computing for Not For Profits was told that Cloud Computing is a relatively new concept to many businesses, however it can benefit a Not for Profit organisation’s productivity and systems.

Maria Padisetti, CEO Digital Armour told the breakfast," that the greatest benefit of cloud computing is ‘utility computing’, where you pay as you go. Instead of buying servers, computers and other peripherals that need to be upgraded every 3-4 years, Not for Profit organisations can pay per user or per usage. The cost becomes an operational expenditure, not capital expenditure anymore, and it is cheaper to run on an ongoing basis. You can also scale up easily as the business grows."

"Cloud computing is still provider-centric and it not yet customer-centric, so the terms and conditions favour providers. This situation will improve in time thoug," she said.

"As cloud computing becomes more popular further security issues will crop up. Though the data in the cloud is secure, there is a possibility of hacking into it unless it is encrypted from the cloud to the end user."

A copy of the Government report can be found at http://www.innovation.gov.au/itiic



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