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Cloud Revolution

Written By: langdon on September 18, 2010 No Comment

Cloud Revolution

The cloud movement is just like the PC revolution, in that it is an economics-based move.  In other words, the price performance of microprocessors relative to mainframes was so overwhelmingly compelling that it completely disrupted the enterprise business of IBM, Digital, Wang, Prime, and Data General.  However, eventually, as enterprises adopted client/server and microprocessor technology (e.g. Oracle Unix) things stabilized, meaning the enterprise absorbed those technologies and ultimately thrived.

The same is happening here. Cloud startups (e.g. Facebook, Twitter, LinkedIn,  etc.) are serving millions and hundreds of millions of users with a single applications. They can pursue this goal with a homogeneous infrastructure. Enterprises are managing hundreds or thousands of applications servicing tens of thousands of users with incredible legacy heterogeneity.  It will take years for these guys to absorb cloud technologies. So while the NY Times is right about the enterprises racing to catch up, the consumer markets are leading – just as PC markets led and ultimately enterprises will absorbed it.

Startups and leading companies like HP, IBM, Oracle and EMC will be best positioned to sell to those enterprises because they have the relationships and/or have a reliable set of technologies

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