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IT Jobs at Risk; Blame the Cloud

Posted on 7.07.2010

Cloud computing (including services such as SaaS and managed IT services) is certainly making it easier for small business to compete - thanks in part to lower cost. The downside of the savings however is that nearly 200,000 IT jobs may be lost in the next ten years according to AMI Partners' recent Cloud Computing Research studies. Not great news if you're in IT.

“The great recession of the last year and a half has significantly increased SMBs’ interest in adopting various cloud-based services as they look for ways to meet their IT needs while keeping costs under control,” says Anil Miglani, SVP of IT Infrastructure Research at AMI-Partners. In response to this interest, local channel partners have started to rapidly expand their cloud-based solutions for SMBs. “However, cloud computing cuts two ways for small SMB channel partners. It allows them to offer new kinds of services and solutions to their SMB customers without having to incur high initial capital expenditures. But automated service delivery via the cloud will also reduce the need for internal IT staff.”

AMI expects a net reduction of 200,000 - 250,000 jobs over the next decade, out of the over 1.3 million people currently employed by U.S. SMB channel partners.

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