Will cloud shrink IT teams?
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.