Cloud Pricing War : The soon end of small players

Cloud Pricing War : The soon end of small players

Did you imagine the Go price in 2010? I looked at AWS archive and it was 0,10$ for RRS Storage when they launched it. Now, in September 2014, what is the price for the same RRS? Only 0,024$, yes only 0,024$! And it will go down again and again! How could it be possible? It’s the Cloud Princing war. And let be sure, it’s only the beginning like said in The Economist this summer. Why? Many factors : – The Moore’s law, With this law we can have more and more power, more and more storage for a decreasing price. Years after years. When 1 ko was big, today it’s 1 Po. – The HUDGE investments the key players made in the Cloud Area (let’s check here), The top three players (AWS, Google, Microsoft) and now, maybe four (with IBM) are strong with their investments so they have to put sales in front of this. – The competitions of the different players, This players have to find their clients on the Cloud side. So the price war is a strong argument to make a market barrier for the once who want to compete. – Cloud adoption is slower than expected, The market, and I imagine the key players around Cloud, imagine that the market will be faster than it is today. Cloud Services are less than few per cent of the global IT spending around the world, let’s say 100’s Billions $ when the over all IT spending is about few Trillions $. It’s slower due to the economic crisis and some security concerns about NSA issue and last,...