Are Cloud Vendors Getting ‘Too Big To Fail’?
September 26, 2014
Grazed from Forbes. Author: Joe McKendrick.
Could financial losses by cloud vendors pose a serious risk to all business customers? Steve Brazier, CEO of Canalsys, has suggested that major players in the cloud industry run the risk of going belly up in hard times, taking customers with them to the brink. Quoted in a Channelonomics piece by Sam Trendall, Brazier suggests that as is the case with banks, economic failure within the cloud industry – particularly infrastructure providers — could have catastrophic ripple effects for large swaths of businesses that increasingly depend on their services.
The financial ground of the cloud industry is already shaky, Brazier opines: “On public infrastructure-as-a-service, I am going to give you a very clear warning: hundreds of millions of dollars are being spent on public cloud infrastructure, but we do not know of anyone [in that space] who is profitable.”…
He goes on to suggest the most reliable players — such as Microsoft and Google — only are the most reliable because their cloud businesses are supported by other lines of business…
Read more from the source @ http://www.forbes.com/sites/joemckendrick/2014/09/26/are-cloud-vendors-getting-too-big-to-fail/