Recent developments in the Cloud Computing market space lead me to believe we are nearing the “tipping point” in the commoditization of IaaS (infrastructure-as-a-service) offerings. This will drive further adoption by enterprises.
Earlier this year, Google, a leader in the PaaS market, publicly announced its intention to enter the already burgeoning IaaS market with its Google Compute Engine (GCE) service offering (currently available only in limited preview by Google). Most analysts interpret Google’s spin up of GCE as an aggressive move to go head-to-head with Amazon’s EC2 on all fronts: price, performance, and features. Other IaaS contenders, including HP with its recently launched OpenStack-based HP Cloud Compute, IBM, and Microsoft (notwithstanding its current focus on PaaS solutions and strategic bet on PaaS market expansion) will also likely influence the IaaS market in the coming year. In fact, among the top-tier IaaS providers, we are already seeing early evidence of an increasingly competitive IaaS price war, which will benefit consumers through 2013 and beyond. Those same competitive pressures are also likely to force some 2nd-tier IaaS providers entirely out of the market space in 2014.
Stay tuned for what I predict will be the rapid rise of a new market segment that will come to be known as Cloud “Brokers” in the wake of the IaaS fray!
[Editor’s Note: This post is part of the annual “Cutter Predicts …” series.]