The New Mega-Clouds of Cloud Computing

Grazed from Dataversity. Author: Charles Roe.

Mega-clouds and “the economies of scale?” Such a topic is enough to keep smaller Cloud Computing vendors up at night wondering if their businesses are going to be able to keep up with the pricing demands of the market, “a year ago RedMonk analyst Stephen O’Grady dubbed such economies as “daunting” for traditional data center vendors, in one of the most polite understatements ever uttered.

After all, a year later we’re seeing mega-cloud vendors – Amazon Web Services, Google, and Microsoft – drive server costs to lows impossible for any enterprise data center to achieve. Oh, and they’re doing it while retaining significant margins for themselves – all of which means we may be on the verge of seeing a complete changing of the guard in enterprise IT that will play out over the next decade.”…

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