Microsoft Matches -- Maybe Beats -- Amazon Cloud Pricing
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Shimmin said cloud storage players are working to capitalize on economies of scale in their data centers. He pointed to IBM’s SoftLayer acquisition -- and the revenue stream it generates and the breadth and diversity of the customer base -- as proof that if you build a big enough data center you can essentially serve any market.
“In the case of software, for instance, you have a huge gaming industry that’s built a backbone on top of SoftLayer sitting right next to a very traditional button down business operation for hosting line of business application and data,” Shimmin said.
“So it is a heady time for these cloud vendors. The ones that might get hurt are the smaller pure plays, but the old guard -- companies like SunGard -- have built solid reputations supporting ISVs and enabling the cloud revolution, if you will, with pricing that allow small businesses to build software solutions delivered via the cloud affordably. That has and will continue to drive the whole business landscape for IT," he added.