The services that software companies are offer- ing and delivering today will need to improve to make implementation faster as customers begin to consider implementing cloud computing technologies even before their annual software upgrade, says business software company Softworx sales director Gavin 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 and database and operating systems costs will also change and we expect that software licence revenues will decrease as these models are implemented,” adds Kilfoil.

The merging of different technologies, the need for economies of scale and data on demand, growing information technology (IT) skills shortages, social network advantages and a new generation of users demanding more flexibility and higher service levels are 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, he says.

“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 advantage is that these components will come from different suppliers, enabling the customer to choose what small ‘app’ is best for their business,” explains Kilfoil.

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 to mitigate risk as they migrate onto the cloud network,” concludes Kilfoil.

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