The cloud threatens creative destruction for IT

The winds of change are blowing through IT, and it’s not a gentle summer breeze. Earlier this month,Hewlett-Packard announced they were cutting 9,000 IT jobs. They’re consolidating their data centers and making them far more automated, as more advanced software and hardware eliminates the need for so many hands-on system and network administrators.

This isn’t a case of HP shutting down a business. They’re still going strong as a provider of IT infrastructure services to thousands of customers. Along with the 9,000 job cuts in IT operations, they also announced 6,000 new hires with customer-facing sales and delivery expertise. According to theComputerworld article, HP officials have repeatedly said thatautomation, not lower labor costs, are the key to increasing margins. This certainly isn’t a perspective that is unique to HP either.

Ironically, IT is becoming a victim of technological progress.

There have been two main bastions of IT value:infrastructure andapplications. As demonstrated with HP, infrastructure jobs are being squeezed by consolidated service providers and ever more intelligent and automated offerings from the likes of Cisco, IBM, and Juniper Networks.

Continues @http://www.chiefmartec.com/2010/06/the-cloud-brings-creative-destruction-to-it.html