More on Cloud and the Environment

Obviously I've been on hiatus for a little while, mainly due to work obligations (I was Sessional Lecturer at McGill University and taught Managing e-Business to BComm and MBA students this fall in addition to my regular responsibilities). So, without further ado, I'll get on with my post.

This past fall, Jirka Danek, CTO of Public Works and Government Services Canada (PWGSC) addressed an audience regarding cloud computing, the environment, and how Canada can be a leader in this space. I've had several discussions around these points and I'm happy to see that they've been heard and are being promoted.

Essentially, Danek discussed several factors that could contribute to Canada's leadership in the cloud computing space, including:

• Cheap, green energy--Quebec has an extensive hydro-electric power generation infrastructure
• Favorable climate--by virtue of the cooler environmental temperatures, cooling costs would be lower
• Government is moving towards cloud adoption as a means of reducing its costs
• The US, one of the largest global markets, is geographically adjacent to Canada

One benefit that he neglected to mention is the trickle down effect that such an investment would have on Canada's economy; the jobs created and taxes collected would help give Canada an economic boost.

This merits the industry's attention. The cloud market will grow* to $40.5 billion by 2014 (IDC) and $121.1 billion (MarketsandMarkets) and, since the technology is evolving rapidly and doesn't seem to be a huge competitive differentiator at this time, the larger future economic profits will go to those who have leveraged the cost reducing advantages.

* There doesn't seem to be any consensus on the market size and growth among industry analysts. Evaluation is done using various estimating methods and include or exclude various segments.