The key reason why cloud computing may fare well amidst what many analysts are predicting to be a recession in the Information technology world is because of the rise in remote and home working, as many people practice self-isolation and engage in home working during the coronavirus pandemic. This trend has been signaled in an article published on the website Market Watch.
Whereas other areas of Information Technology are expected to suffer. For example, the International Data Corporation is anticipating a significant slowdown in company spending on hardware during the first half of 2020. Furthermore, with software and services spending will additionally be affected as the crisis reverberates through all sectors of the economy.
Further insights can be gained from lessons drawn from the last major recession in 2008. If the trend from the previous recession hold true, then Managed Service Providers (bodies that remotely manage customer Information Technology infrastructures and end-user systems) now have an opportunity to help companies struggling to maintain their IT infrastructure, security, etc. on tighter budgets, fewer resources and fewer experts on their payroll.
This trend seems likely, according to Jim Lippie, GM of partner development at Kaseya (an IT Infrastructure management solutions provider), who has notified Digital Journal about these trends impacting on the Information Technology industry.
Lippie tells Digital Journal that, unlike many other parts of the Information Technology industry, Managed Service Providers are poised to thrive during an economic downturn. In normal times, they free up time for IT admins by taking care of administrative work, but in dire times like these, they evolve into a nearly 24/7-available IT team. And with a 40 percent increase of cyber attacks in the past two months, small businesses cannot afford to overlook the need to beef up their Information Technology support.
This is because, Lippie expands, during economic downturns, Managed Service Providers ensure companies can maintain vital operations and architecture, even as their internal IT team freezes new hiring or cuts back on extraneous projects. We saw this play out during the Great Recession when virtually no business could escape its far-reaching and sometimes devastating effects — no business, that is, except Managed Service Providers. In fact, Managed Service Providers business expanded during the last recession, in 2008-09, and this area is projected to do so again during these uncertain times.
