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Cloud Computing May Lead to Job Loss

US small and medium-sized business channel partners may lose from 200,000 to 250,000 jobs in the next decade as the rapid growth of cloud computing reduces the need for internal IT staff, according to a recent study by AMI-Partners. More than 1.3 million people are currently employed in this area.

“The great recession of the last year and a half has significantly increased SMBs’ interest in adopting various cloud-based services as they look for ways to meet their IT needs while keeping costs under control,” said Anil Miglani, SVP of IT infrastructure research at the consulting firm.

“We have already seen some early signs of IT services job attrition at the high end of the market as a result of software automation. It is only a matter of time before this begins to affect the IT services jobs in the SMB market,” Miglani added.

In the near-term, the number of job losses will be slight as SMBs will need the expertise of IT professionals to establish these cloud-based services, the company predicts. However, as companies scale up their cloud-based offerings, they will reduce their need for IT staff employed by local channel partners.

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