Venture capitalists are no longer investing in new companies whose business plans require a physical data center, Trevor Bunker, chief technology architect from US software provider CA Technologies (Nasdaq: CA), said at the CA 2011 Tour presentation.
According to Bunker, new trends in terms of data storage are evolving toward the cloud, reducing investment costs and delivery timetables.
"We have evolved from the mainframe in the 1960s to the internet, and now we move to the cloud. The cloud is the cost-efficient solution, and companies are using the cloud because [they] need a better and faster service," he said.
According to Bunker, cloud computing allows for lower upfront investments costs because companies don't have to spend much in infrastructure.
"Most IT professionals said that infrastructure has become irrelevant, it does not add strategic value to the business. In the past, we had to build everything in our data centers, all operations and applications. But now we have choices; we can choose applications from our providers, outsource providers and storage in the cloud."
According to Bunker, Agile methodology - instead of the traditional waterfall model, used for software development processes - is the tool to use in software development needed for the cloud.
This methodology, which is a close collaboration between the programmer team and business experts with face-to-face communication, has been around for a long time and is well known in Europe and USA, but not much in Latin America.
"Agile is a methodology but also a capability, and this is the evolution of software development. It's widely used in US and Europe and is a good opportunity for Latin America because we will start to see providers offering tools designed for Agile, not for legacy waterfall," Bunker told BNamericas. "So companies will very quickly realize that they can develop faster applications that allow you to know what would you do first, how much would it cost and the time it will take [to build]. And, if you are a company developing software for sale, how much money would you make."