economies of scale. one cloud company needs far fewer engineers than all of the combined individual customers will need. i agree that it would be smart to work for a company that outsources a product in a hosted environment. unless you think working at a help desk or on small scale IT projects is your thing.
i love how you throw extremely large markets into a bucket which you call "some of their services". do you realize how big email, accounting (and ERP systems), SOFTWARE, and medical records are in terms of market size?? holy cow.
And for the record, I work at a software company. Everything is moving to cloud, SaaS, hosted, or whatever you think is the correct term.
Sure, it takes fewer employees at an aggregated level (ie: cloud company) to perform the work that would be required if all of their clients employed people directly to perform the same tasks independently. But the amount of jobs being lost at the local scale compared to the number of new job openings at the aggregate level isn't that large of a difference. Factor in the number of new companies that need to utilize those services, which in turn requires more staff, and the difference is even further negated if not reversed.
Point being - good IT people are still in demand.
You are also taking my comment about "some of their services" way out of context. I was describing a number of categories of services, not the percentage of business or work those entail. One might say "some countries, such as the US, China, Russia, India.". Sure, that might make up 75% of the worlds population, but it still only equates to a handful of countries. Additionally, many of these categories, specifically medical records, is being outsourced primarily because of the amount of work it entails to keeps things compliant with government and industry regulations. They aren't only outsourcing IT, they are outsourcing a huge chunk of supplemental positions that were primarily focused with compliance.
Sure companies are moving to the cloud for their primary use but many still keep onsite equipment in house as a backup. Also, just because it is in the cloud doesnt mean there is no management needed from the companies side. Trends shift and so do the jobs, you need to allow yourself to be flexible for those shifts in trends and you will be ok in IT.
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