dinCloud CTO: Migration Wars Coming After Price Wars

June 9, 2014 Off By David

Grazed from TalkinCloud. Author: Chris Talbot.

The price wars that are the focus of the battle between the big and small guys of the cloud computing world are just the beginning, according to Mike Chase, CTO of dinCloud. The cloud wars are evolving, and there are already strong signs of the next major battle—the migration war. Cloud pricing is having an effect on customers and end users.

Particularly, the entry level service for cloud is storage, which continues to drop in price. Not because it’s a major profit center, but because it’s the loss leader tht brings in customers that may want to consume other cloud services. And the low prices are something smaller players can’t compete with…

Consider last year’s Nirvanix shutdown debacle, after all. The pure-play cloud storage company pulled the plug on its cloud storage services, and the reason seemed to be due to the finances around cloud storage. In a commodity player, Nirvanix simply couldn’t compete against the ridiculously low cloud storage costs of the big players. There’s simply no profit in a low-margin business…

Read more from the source @ http://talkincloud.com/iaas/060914/migration-wars-coming-after-price-wars-says-dincloud-cto