IBM has reportedly lost revenue of up to $1 billion from hardware sales with the advent of cloud computing. However, its cloud services revenue has grown exponentially over the past year.
IBM had some of its best results with its cloud services efforts. Cloud revenue is up more than 70 percent year to date with revenue in third-quarter exceeding $1 billion, of which about $460 millions delivered as a cloud service.
Where therefore is the money being spent? Public cloud is the answer as it continues to gain rapid market traction. It is therefore impossible for service providers to ignore this opportunity. The benefits and opportunities in the cloud are so extensive that it is impossible for service providers to ignore them. Tactics such as packaging up existing infrastructure or virtualization products will not cut it with customers. Time is up – service providers need to make a move.
One of the most interesting sessions at Structure Europe this morning was the ‘Amazon In Sight’ moderated by David Meyer, Senior Writer, GigaOM.
Four cloud service providers, ElasticHosts, ProfitBricks, CloudSigma, and UpCloud were asked to give their insights into what they see as key differentiators for service providers taking on Amazon.
Scale, reach, price and localization were all topics that were covered in the session. None of the service providers particularly felt that global reach was an issue as networks and datacenters mean that the ability to operate globally is easy.
When asked about price competition, the feeling from the panel was that Amazon can easily be beaten on price as they have rigid pricing structures that do not allow bursting or scaling. Which smaller end users looking to offer cloud services, often require.
The ability to offer flexible, scalable product offerings to end-users allows service providers to differentiate themselves. Coupled with focusing on a specialized market, this can be a route to market that separates them from Amazon.
Back in July we launched our Learning Zone, as a one-stop shop of cloud resources. Since then we have expanded the Learning Zone with industry leading content.
A team of cloud computing experts from Flexiant, specifically focused on the service provider and public cloud markets, have created an assortment of content, which contains many different media types.
Some examples include:
Derrick Harris at GigaOm published an article to show similarities between the cloud computing and fast food industry. In the article ‘AWS is the McDonald’s of the cloud. Who’s the Burger King?’ Derrick highlights two big questions that still dominate the discussion– how many players can the market support, and are cloud resources a commodity?
To illustrate his point, Derrick uses the fast food industry as a simple analogy. The analogy goes like this:
Fast food restaurants offer their consumers essentially the same things as public clouds offer their customers – convenience, speed, standardization, flexibility and everything else that comes with not having to prepare a meal from scratch or deploy applications on physical gear. And if all anyone wanted was fast, cheap hamburgers, fries and maybe some sort of chicken sandwich, the more than 33,000 McDonald’s across the world would probably do the trick.
However, when I come to any major intersection in a big city (and even in some small towns), I usually see no less than two national fast food chains taking up corner real estate. If I drive a little down the road, I’ll likely see a few more, and possibly some regional chains thrown in, as well.
Ahh the lazy days of summer are here. It’s the perfect opportunity to kick back with one of these carefully selected pieces of content to catch up on the latest technologies to help you grow your cloud offer while you relax in the sun.
Flexiant and select partners have picked out the best assets and put together a choice selection just for you. Topics range, but all provide advice on paths to increase your cloud revenue.