Cloud Crosswinds Ahead as Behemoths Battle on Price
May 1, 2013
Grazed from DataCenterKnowledge. Author: Ted Chamberlin.
With the recent announcement from the Microsoft Azure camp stating “ its commitment to price match Amazon Web Services prices for commodity services like compute, storage and bandwidth, aligned with the general availability of Windows Azure infrastructure services,” the official race to zero begins in the Infrastructure as a Service market. This shot across the bow of AWS will most definitely bother AWS, but it should scare the stuffing out of the rest of the IaaS market. Particularly the providers who the traditional businesses trust a bit more for more enterprise-ish workloads should be concerned.
Providers like GoGrid, Tata, Savvis, Terremark, Rackspace Cloud and others just entering the market will face the heavier crosswinds as these behemoths engage battles. The stark reality is that hyper scale providers like Amazon use their operational acumen and scale to drive pricing down on IaaS services on a regular basis. This will create an exceedingly tougher environment for the rest of the cloud providers to compete. How is an IaaS provider to thrive, yet alone, survive?…
The Power of Community
Many of these market entrants have the solution already teed up in the data centers. Many companies will choose their colocation, hosting or cloud providers based upon the current occupants in those facilities so that they can trade traffic, conduct commerce or just inhabit a robust ecosystem…
Read more from the source @ http://www.datacenterknowledge.com/archives/2013/05/01/cloud-crosswind-ahead-as-behemoths-battle-on-price/