Businesses: Adapt to the digital world or face extinction

At the 2014 NZ Cloud Computing Conference, some of the top people in the industry discussed changes taking place in cloud computing and how innovation is key.

Cancade Kinser, CEO New Zealand Technology Industry Association, introduced the conference.

In order to grow we need to be flexible and evolve, she says. “Those who can’t stay on top of the most recent trends face extinction. A key adaptation to make is to adopt the cloud.”

“We can use the cloud environment to not only thrive and grow, but to shape business,” she says. "Survive and thrive."

Michael Snowden, CEO, OneNet, says many organisations are moving at an accelerating pace into cloud computing.

“IBM, SAP, HP, Intel, the list goes on. They are scrambling, trying to re-position themselves in a new era.”

Snowden lists a number of benefits of cloud computing. He says it reduces costs dramatically. Every company, from the smallest to the largest can reduce its costs and run for less because costs vary in direct proportion to what is being used, he says.

When utilised correctly, cloud can give high security to businesses of all sizes. Every company, from big to small, will receive the same quality of security.

It is critical to treat it carefully and put the necessary control measures in place. “No two clouds are the same,” he says. “We still have to exercise due diligence."

Snowden's focus, however, is how cloud computing provides a platform for innovation.

“Innovation in my mind is the most important part of cloud computing,” he says.

New Zealand is a leader when it comes to innovation in the world of cloud computing, Snowden says. Innovation is the catalyst for growth, and cloud computing is growing at an exponential rate.

“Obviously there may be limits, but in the next 12-15 years there are no limits in sight to have this level of computing power,” he says.

Moore’s law is the observation that processor speeds, or overall processing power of computers, will double every two years. The law is named after Gordon E. Moore, co-founder of the Intel Corporation, who described the trend in his 1965 paper. His prediction has proven to be correct – digital electronic devices are all improving at roughly exponential rates.

This kind of computing power is accessible through cloud computing, says Snowden, and businesses need to adapt.

“Large traditional players are struggling to find a way to catch up to compete in this new world,” he says.

It isn’t the economics and technical aspects that prevent businesses from adopting cloud computing. Rather it's behavioural, cultural aspects, the fact that it’s difficult to let things go, that's the biggest hurdle, he says.

This is a time when businesses can rapidly ascend to full scale and compete against big players, says Snowden. The business model of innovation and adaptability will enable businesses to find their place in the modern digital world.

It’s an exciting future and cloud computing is a key part of that, says Snowden.