Monday, May 12, 2014

Price Wars in Cloud 1.0 Land

There is not much to say on this that hasn't already been written about in Forbes, TechCrunch and the like. Well, except that it makes me very happy.

It seems that Cloud 1.0 services are perceived as a commodity these days. The innovation in is happening in Cloud 2.0 (and not by the big guys that are slugging it out 1.0 land). So that leaves giant providers like Google, Amazon and Microsoft to create value by slashing their prices. In April, Amazon had their 42 price reduction since 2008. This is great. It is just what we all expected of IaaS. We get great service, security & stability, set-it and forget-it functionality and falling prices. I am happy to benefit.

But what about Cloud 2.0?
I'm happy where I am, but I always want more.
AWS gives us tier pricing and we can pick different specifications, but cloud 2.0 will allow us to build our own. This functionality will allow us to save even more.

Question is, will we see a new innovative company emerge to challenge the giants, or will they be assimilated? I'm sure a little of both. But however it works out, it'll just keep getting better for us.