EMC: Cloud computing to change IT

Cloud computing has the potential to rewire IT methods within the next five years, according to bullish predictions from EMC.

"The topic represents a transition in the industry," vice-president of global marketing, Chuck Hollis, said. "Looking at global IT spend being north of $US1 trillion, this will probably effect the majority of dollars that gets spent on IT."

In the next three years, the cloud computing market could be worth more than $US100 billion, according to Merrill Lynch analysts.

Due to the potential enormity of the cloud market, EMC has set up a cloud infrastructure and services division.

"The technology, business metrics and value propositions are different. It's not business as usual anymore," Hollis said.

EMC Asia-Pacific and Japan president, Steven Leonard, said the channel would play a very key role in adding value to services in the cloud.

"Solution providers can look at this as another way of solving a customer problem," he said. "We currently have partners that are taking our technology like backup and archiving, and putting them in the cloud."

However, partners would need to master both skills in providing the technology and a service.

Hollis said partners were constantly asking how they could build a better eco-system and add on-going value to their business.

The channel could also provide their service offerings and offer the cloud as a value proposition, he said.

"Partners are trying to get out of point product sales," Hollis said. "We think there are going to be some big opportunities for larger and smaller tier-two partners."

Last year, Sydney-based managed services provider, InfoPlex, built an integrated services network to allow them to put storage and security services as well as virtual servers and desktops into the cloud.

InfoPlex product manager, Michael Baker, said the company was well positioned to deliver cloud services as it begins to focus more on building internet type applications.

"We released that we would soon be outdated if we didn't get our services out to customers," he said. "One thing that we've done is purchase the means to deliver those services."