By Tan Weizhen

COMPANIES here are increasingly using free 'cloud computing' Internet-based applications such as word processing programmes and photo-editing suites to cut costs and manpower.

Cloud computing applications are free, open source software, which are accessed via the Internet.

Companies which turn to these alternatives say the free software can reduce their IT costs by as much as 65 per cent.

Mr Chris Morris, a research director at independent research firm IDC, said the cloud computing market here is growing at more than 40 per cent every year as Singapore moves from 'the early-adopter stage to the early-mainstream stage of cloud computing'.

A recent IDC survey found that four in 10 companies in the Asia-Pacific region, including those from Singapore, are already exploring or having trials for cloud computing applications.

About one in 10 is already using such applications.

The study, which polled 696 senior IT executives, found that the main reason companies turn to cloud computing is it keeps costs low.

The Ministry of Education became the latest convert two weeks ago when it purchased an entire suite of Google applications, including word processing and chat functions, for its 30,000 teachers.

In doing so, the ministry estimated it could save $360,000 a year.

Cost savings aside, the applications also have the potential to promote interactive teaching and learning, its spokesman said.

'Teachers can use discussion forum or blog features to discuss or share their experience on teaching topics, co-create pedagogical content using wikis, as well as create, contribute and share teaching resources with other teachers within and across schools,' added the spokesman.

Other ministries or government agencies to convert to cloud computing or open source software in recent years included the Infocomm Development Authority and the Singapore Land Authority.

Home-grown company Avago Technologies shaved $1.1 million from its expenditure budget - a massive 65 per cent savings - by turning to cloud computing last year.

Doing away with employees previously needed to troubleshoot proprietary software, and the need to renew pricey application licences are compelling reasons to turn to cloud computing, said Avago's infrastructure manager, Mr Stanley Toh.

'Even if we downsize, we still have to pay the licences for unused computers...We managed to reduce the staff count by at least half. Plus, we don't have to worry about servers crashing,' he said.

However, some companies still prefer traditional software such as Microsoft Office because of their numerous features.

For example, the Institute of Certified Public Accountants of Singapore (Icpas), which switched to cloud computing - a suite from Google - a few months ago, is still using commercial software.

The benefits, it explained, is the higher level of support and service it can get from the commercial providers.

'In addition, we are able to configure proprietary software to fit our requirements, tailoring the IT solutions to meet specific needs,' said Icpas president Ernest Kan.

This article was first published in The Straits Times.