In the past year, cloud computing news alerts have up ticked dramatically in regards to press releases about acquisitions. At the Gartner Data Center Conference, a study was presented and it was suggested that nearly 25% of cloud related businesses will no longer be around in 2015. The reason for this sudden evaporation of cloud businesses ranges from bankruptcy to acquisition. The bottom line is that these businesses will not exist as we know them today.
If you’ve kept up with cloud computing news at all over the past year, you’ve noticed that companies like IBM have entered into multi-billion dollar acquisitions with existing cloud providers like NetSuite. The large tech companies like IBM know that they have one significant hurdle in the cloud market and that is time. Companies like IBM have found it easier to acquire new cloud technology through acquisition than go through the research and development of bringing up their own systems which could take months or years. In the ever evolving cloud computing world, the large players do not have the luxury to wait months or years.
Smaller companies and cloud startups may be at an advantage versus the larger IT companies because they can often offer a service that costs less with less overhead. As these types of startups grow, the best way that the traditional companies have found to compete with them is to buy them out. This often results in a win-win for everyone. The large publically traded technology companies get a diverse mix of cloud products to add to their portfolio and the customer gets the peace of mind associated with working alongside a large IT company like IBM or Oracle. Get a good look at the cloud computing industry now because the landscape will change dramatically between now and 2015.