It’s right there in black and white and hyperlinked to a variety of charts and graphs…the cloud is the future and the biggest revenue stream via the cloud is going to be from service offerings. While this news broke in the middle of April in an article in Barron’s, some might actually say this isn’t news, it’s just the progression of smart business.
It’s clear to anyone who has followed the development of software as a service and the cloud commerce segment that smart money is being invested in solutions that simplify doing business in the cloud. Everything from implementation of solutions to clarifying daily operations like billing and accounts receivable is being refined with great results.
The companies specializing on making it easier to do business in the cloud look make their customers happiest — and anyone who doesn’t offer these capabilities is falling behind. But there is plenty being left unsaid in this – and other articles – touting how cloud billing solutions are changing the landscape. First among these factors is to run and pay for actual enterprise software on cloud platforms — especially when its growing daily and has to run seamlessly on these same cloud platforms.
For that to happen, players like Google and Amazon are going to have to take control of these workloads and help customers run them on their platforms. This brings about two things. First, somewhat more control for these big players as they take hosting and cloud data from larger players. And second, it brings about more uncertainty and more costs for businesses that aren’t doing business in the cloud efficiently.
Giving away storage space – as has long been said – is not a sustainable model. At some point somebody is going to have to pay to house, retrieve and secure the immense amounts of data on all these public, private and hybrid cloud platforms. As noted in the Barron’s article, JP Morgan analysts delivered a note to their clients saying that the cloud computing wars are “entering a new phase”.
Further, the folks at JP Morgan said this is going to be bad news for traditional IT vendors who don’t get up to speed fast with cloud service offerings. They’re basing this assumption on another prediction. One that the use of the public cloud is set to rise dramatically in coming years. Specifically when it comes to “services offered for a fee from Amazon and Microsoft‘s (MSFT) Azure.”
They said, “In our view, a near- tripling of the public-Cloud-based workload mix represents a monumental architectural shift, which shows no signs of abating and is likely to create a major ripple effect across the entire technology landscape.”
What’s that mean for companies doing business that relies on cloud storage? It means the more skilled IT vendors will continue to make money while the firms that haven’t gotten a handle on cloud services are going to slowly fall away.
They continued, “These firms have some commonalities to the extent that they span Services, Hardware, and Software, often creating an enclosed infrastructure stack. In other words, you don’t see pure software-only vendors at the top of this list.”
Learn more about how the world is changing by reading more posts on the Orbitera blog and see how delving into cloud services can be made easier – almost seamless – for your team as the cloud continues to be a priority for organizations of all sizes across the globe.