Cloud Computing Market May Become An Oligopoly of High-Volume Vendors
July 11, 2013
Grazed from Forbes. Author: Joe McKendrick.
Is the cloud computing marketplace becoming the domain of a few big vendors? With large players including Amazon, Microsoft, Google and IBM coming online with similar types of services, we may be starting to see a consolidation of the primary cloud computing market into the hands of a few powerful vendors.
This may herald the emergence of an IT oligopoly, Owen Rogers, senior analyst at 451 Research, suggests in a recent research note. Actually, he goes further to say what is emerging is both an oligopoly and monopoly at the same time. With identical services comes commoditization, and only big vendors that can deliver huge economies of scale with margins will survive in this space…
He adds that perhaps the “oligopoly would be used for bursting of virtual machine requirements, whereas the monopolistic market would be used for performance-based workloads that demand a service-level agreement (such as a database).”…
Read more from the source @ http://www.forbes.com/sites/joemckendrick/2013/07/11/cloud-computing-market-may-become-an-oligopoly-of-high-volume-vendors/