Cloud Computing

Will cloud shrink IT teams?

Arun Mysore

HP has decided modernise its data centers and layoff 9,000 employees, who it thinks will become redundant by the increased automation.

The disruption triggered by cloud is not limited to how
enterprises consume software. It is also likely to initiate a churn
in the employment market. HP has decided modernise its data centers
and layoff 9,000 employees, who it thinks will become redundant by
the increased automation.

HP’s net head count reduction would be only 3,000 as
it plans to hire 6,000 professionals for sales and marketing. Would
the automation and standardization promised by cloud shrink IT
teams and build up sale units?

WSJ reports that HP, IBM, et
al. are feeling the pinch of the slow growth in
services as businesses shift to smaller, shorter outsourcing
deals.

“To profit on smaller deals, services providers have been trying to
automate their offerings, replacing high-cost workers with software
that performs certain functions automatically,” says
WSJ.

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