Nasty Battle Between IT Giants Is Making Cloud Market More Interesting

In recent times, the IT industry has seen a fierce battle between major IT giants in the term of pricing, services and new innovations. The outcome of the cloud war has always been beneficial for the end users. They pay less and get more.

It is always talked that how the cloud computing market's race is taking place which has been beneficial in many terms like new innovations and pricing. The industry has even witnessed some nasty confrontations between many IT giants over different aspects of cloud computing.

The latest fierce competition between Amazon and Google is one of the solid example of the battle between the major cloud providers. Google announced the major price cut to counter the strategic supremacy of Amazon cloud services. Amazon officials even admitted that the significant move by AWS impacted the quarterly profit of the company. Since, the storage devices are getting cheaper and the demands are growing, the big bulls of cloud providers are reshaping their data center to meet the expectations of new era. This is somehow helping small and mid sized businesses to use cloud resources with a far lowered price.

The one after another battles between major cloud providers are resulting in one after another price cut. They are even cutting down their own margins so that some other companies could not steal their customers. None of the other companies except the major companies can afford to drastically lower their margins and stay competitive with the service. The fierce competition is being helpful for the customers.

But this situation is creating difficulties for the small cloud providers. Eventually, they are left with only two options: To stay in competition, cut down your prices, without thinking about new revenues, run your business and ultimately go out. Or simply watch the giants lowering their prices and customers flocking to them, keep your price steady and go out of the business. No-win all the way for the small players.

With a lot of innovations with the cloud, the infrastructure has variety of strengths to cater in different kinds of needs and markets. Service efficiency is also the biggest factor in the term of cloud oriented infrastructure. But with various studies, it is proved that price is the only tag the clients look at.

To get more deeper into the pricing pressures, look at the example of Rackspace cloud hosting. They were second in cloud hosting providers behind Amazon, but their sales and service strategies has not been so efficient that it could still go with the same pace it was going before.

Now, Rackspace is looking for the highest bidden to sell their business. Amazon and Google are the main factors of the pricing wars. Microsoft has already slowed down their cloud development resources and started focusing on some other business strategies in more profitable areas. But the pricing wars has helped millions of businesses in their startup process.  

But if we look beyond the major cloud players, there are a lot of public and private cloud provider who are efficient enough to meet the demands of projects and business needs. It’s all the matter of spending time and finding out the best.

Company Information:

SageNext is a cloud hosting provider for major tax and accounting applications. The company uses the data center facilities located in New York and Dallas.

For more info : http://www.thesagenext.com