Report: Cloud Tech to Create 13K Jobs in Mpls. by 2015
With an increasing number of companies adopting cloud computing, a flock of new jobs are forecast to emerge in Minneapolis and worldwide by 2015, according to a recent study commissioned by software giant Microsoft, Inc.
According to the study, which was conducted by research firm IDC, 14 million new jobs are expected worldwide by 2015; about 13,000 of the jobs are projected to be in Minneapolis. The report said that they will include IT jobs at companies that are adopting cloud technology, which is driving down their costs and freeing up their IT resources to spur innovation and job growth.
Cloud computing is a technology that allows companies to store digital data and software in massive, shared data centers, or “clouds,” rather than on-premise or single-tenant servers. The model spreads the cost of maintenance and upgrades of these shared data centers across all users, helping technology companies to bring down cost.
IDC found that in 2011, IT cloud services helped businesses around the world generate more than $600 billion in revenue and create 1.5 million new jobs. It estimated that annual revenues from IT innovations enabled by cloud computing will reach $1.1 trillion by 2015. Combined with cloud efficiencies, this will drive significant organizational reinvestment and job growth, the report said. More than a third of the new jobs are projected to be in the communications and media, banking, and discrete manufacturing industries.
The study also projects that China and India will account for about half of the 14 million jobs, while about 1.2 million of the new jobs will be in North America. New York will reportedly have more than 99,000 new cloud-generated jobs by 2015-the greatest number among U.S. cities.
In order to forecast the number of jobs that might be created in a particular region or country, IDC took into account factors including unemployment rates, IT spending, technology infrastructure, and regulatory environment.