Basically, what happens is this -
Previously, if you had a problem, you got hold of someone who could help you fix it.
Now, you have to get hold of someone and nag them to fix it. They have x number of other customers so you are a low priority. Moreover you need someone at the client end who is technically proficient enough to explain the problem in detail in order for it to be fixed.
How does that reduce IT jobs? My experience so far is that it increases them!
Also, in the EU you cannot simply virtualize your servers and stick them in the cloud, because of the Acquired Rights Directive, which is a law designed to stop people losing their jobs due to outsourcing. By definition you either have to keep the staff, or transfer them to the cloud provider, which is impractical.
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