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Cloud Computing Generates New York City Jobs

A new report shows that the shift to the cloud will add more than 60,000 jobs in New York this year.

March 5, 2012
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Add cloud computing to the forces contributing to job growth in the New York City tech sector.

According to a report released Monday by research firm IDC, the shift to cloud computing, and the economies of scale it allows, will add more than 60,000 jobs in New York this year, making the city the biggest beneficiary of the trend among the major metropolitan areas in the country.

Los Angeles came in second, with close to 38,000 cloud-related jobs in 2012.

The report was sponsored by Microsoft, which has been moving aggressively into cloud computing services.

"There's a myth out there that moving to the cloud is shrinking job opportunities," said Laura Wallace, general manager of Microsoft's New York metro district. "That wasn't what we were hearing from our customers."

The study, which looked at the global impact of investment in cloud computing services, found New York was already seeing benefits because of its concentration of industries that rely heavily on information technology.

The city accounted for just over 9 percent of U.S. cloud-generated jobs in 2011, despite having only 6 percent of the U.S. workforce.

That workforce "is more concentrated in banking, communications, securities and professional services than most other cities, which increases its share of U.S. cloud-related jobs," the report stated.

The study looked at a broad range of cloud computing services, which include the use of third-party servers to store data and the delivery of information technology services to a company by an outside provider.

IDC has been tracking the economic impact of cloud services for the past four years. According to the report, the research has found that the shared services offered by cloud computing frees up resources that businesses can invest elsewhere. That leads to innovation, which increases revenue, which spurs job creation.

By 2015, the study estimates, New York will have added more than 99,000 cloud-related jobs, while the U.S. as a whole will have added 1.1 million. The analysis measures net job growth, taking into account jobs lost to cloud computing.

Filed by Matthew Flamm of Crain's New York Business, a sister publication of Workforce Management. To comment, email editors@workforce.com.

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