Federated Cloud Services Offer Response To Commodity Pricing
April 7, 2014
Grazed from EnterpriseTech. Author: George Leopold.
As cloud services rapidly become a commodity, smaller local service providers are feeling the heat as market leaders Amazon Web Services, Google, and Microsoft engage in a price war that is quickly boiling down to who can best compete on average hourly price for storage, computing, and other cloud offerings.
Hence, smaller and mid-tier service providers looking to survive in an increasingly cutthroat cloud market are touting a “federated” approach that would allow service providers to share capacity. This, proponents argue, would allow smaller competitors to scale their cloud infrastructure services while offering customized services that would differentiate them from the likes of AWS, Google Cloud Platform, and Microsoft Azure…
The push for federated services is gaining steam as these three cloud providers have moved in recent weeks to cut prices for services. While each has enough volume to absorb prices cuts, smaller competitors are starting to feel the pinch of commodity cloud services. In response, companies like OnApp are hustling to keep pace with custom packages designed to speed the delivery of cloud services while attempting to stand out from the crowd. The approach is sure to produce some product flops, but may also spur cloud innovation as the customer base expands…
Read more from the source @ http://www.enterprisetech.com/2014/04/07/federated-cloud-services-offer-response-commodity-pricing/
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