Can Cloud Computing Save The American Economy?

American businesses systemically and culturally react fast. Two years afterwards the economic downturn began the United States was generating 97% of its economic output with only 90% of the labor. This sort of gain in productivity ultimately translates into increased economic activity, the ability to pay down debt and a higher standard of living for those of us who are employed. Unfortunately it does not directly address the issue of unemployment.

The fact is that productivity gains from working harder can only take us so far. Technology and research can and must take us the rest of the way, creating new jobs and new industries. Our “so called” information economy, for instance, is ripe for technology. Today, all organizations are dependent on information technology. What makes me optimistic about the future is that we have not even begun to scratch the surface of all that can be accomplished by in fact applying information technology pervasively.

The computers to create

We have spent trillions of dollars worldwide for the computers to create and process information, networks to move it around and the hardware to store it. However we are at a point where we spend 60 to 70% of “IT” budgets just to maintain those systems and infrastructures. No wonder progress in applying IT is so slow. This is the research equivalent of every organization in the world, big or small, investing the capital and human resources to build and operate their own electricity producing power plants.

These are cloud infrastructures. The economies of scale, flexibility and efficiency they offer will not only save organizations massive amounts of capital and maintenance costs however emancipate them to apply and use information as never earlier. An unbelievable possibility to raise productivity during creating unprecedented opportunities for businesses and workers.

New age of research

A new age of research and research advancement is within our grasp - an possibility for job creation, greater productivity and economic growth. The time for cloud computing is however. We need government and industry to accelerate broad scale adoption of cloud infrastructures so we can reap the rewards of a true information based economy.

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