Report Says: Millions of New Jobs Coming Thanks to Cloud Computing

Cloud computing is predicted to spawn millions of new jobs in the next few years in and outside of IT as companies moving to the cloud redeploy the money they now spend to maintain in-house systems.

Global tech research and advisory firm IDC says by the end of 2015 almost 14 million new jobs will be created by the shift to public and private cloud services. Most of those new jobs will be outside the U.S. and Canada; China and India will see much of the growth. IDC predicts those two countries will share 6.75 million new jobs. North America will get 1.2 million new jobs, most of them in the U.S.

Underwritten by Microsoft, the IDC research says the nascent cloud-computing movement “already has begun changing how IT delivers economic value to countries, cities, industries, and small businesses. This is because cloud computing comes with unique economic leverage that means a little money spent up front leads to impressive returns down the line.”

IDC predicts that half the new jobs will go to small and mid-sized businesses, in part because they’ll move to the cloud more rapidly than large firms, which have invested in on-premises, enterprise systems. Smaller firms are also more plentiful, including in some of the industries IDC expects will be the largest beneficiaries of the job growth, though their IT spending is significantly less than it is at larger firms.

While nearly all industries will add jobs as a result of the cloud computing movement, IDC says the banking, communications and media, and discrete manufacturing will each add at least a million jobs by the end of 2015. The two former segments, though slow to adopt cloud computing, will generate more jobs than the early adopters “because they are big segments and spend a lot on IT.”

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These new jobs will come about through IT innovation; time and money now spent managing in-house systems will be freed up for other projects. “The basic rationale for job growth is that IT innovation allows for business innovation, which leads to business revenue, which leads to job creation,” write the study authors. Rather than eliminate IT jobs, the authors report that CIOs “look at migration to cloud computing as a way to free up existing resources to work on more innovative projects.”

According to the IDC research, “Increased business revenue from the IT innovation enabled by cloud could reach $1.1 trillion a year by 2015 across the countries studied.”

John Zappe is the editor of and a contributing editor of John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.


7 Comments on “Report Says: Millions of New Jobs Coming Thanks to Cloud Computing

  1. Thanks, John. Let’s assume a bit over 1M of those North American jobs are US, so that’s about 350,000/yr, or ~30,000/mo. Are there 30,000 people/mo with these skills coming onto the market? ISTM that unless these new jobs hire the people who aren’t currently working (either un/deremployed with different skills or currently in school) this will be pretty much “robbing Peter to pay Paul”, i.e., not very many net new hires.

  2. Where are these people going to come from? The schools are not teaching this…

    The industry is already in a job boom now. Unemployment for most Technology areas (CA, DC, TX) are near historic lows. I recruit for these type positions everyday. The people are not available now!


  3. John, the article has legs but only if we examine who and where these folks that are going to be hired really are. Keith and Bill rightly point out that an article about ‘creating a million jobs’ is really misleading if there is no one to fill them or, if the only people who can fill these spots are already happily employed in current technology positions.

    I think it is appropriate that you pointed out that 80% of them will be outside of the US but unfortunately, the gap within the US is more likely to be filled by efforts in other countries to meet this need than by our own efforts.

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