Can cloud computing revive IT dinosaurs?
Grazed from Scoop.co.nz. Author: Editorial Staff.
What do IBM, Dell, HP, Oracle and SAP have in common? All are mature technology companies – the youngest is Dell formed in 1984 – and they all banking on cloud computing getting them out of the doldrums. There are a few things wrong with that idea.
First, it was cloud computing that got them into trouble in the first place. Hardware sales, particularly servers, fell as companies switched applications and processing to the cloud. Cloud hosted applications disrupt high-end software. It challenges high-margins, undermines the need for infrastructure and support than allows software giants to get away with huge costs.
Oracle, originally a software company but since buying Sun Microsystems with a large hardware business, is in a more nuanced position. It lost server sales to cloud computing while its software business is challenged by nimble, commoditised cloud-based apps. SAP faces just the app challenge…

