Gartner's Magic Quadrant 2014 For Cloud: Winners & Losers - InformationWeek

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Gartner's Magic Quadrant 2014 For Cloud: Winners & Losers
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Laurianne
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Laurianne,
User Rank: Author
6/5/2014 | 1:35:20 PM
Re: Cloud price cutting is cutting out some competitors
As Charlie has noted, the winner in the cloud price war looks to be Google either way. Even if Google doesn't steal a ton of AWS customers, it has eroded Amazon's profit margin -- and Amazon needs the $ more.
Li Tan
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Li Tan,
User Rank: Ninja
6/5/2014 | 10:58:49 AM
Re: Cloud price cutting is cutting out some competitors
The competition is really fierce, which is good for the consumer. However, there is another concern - will the service quality be jeopardized? The pure price war cannot last for long and it's one of the worst kinds of competition.
Brian.Dean
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Brian.Dean,
User Rank: Ninja
6/5/2014 | 12:44:29 AM
Re: Cloud price cutting is cutting out some competitors
Amazon, along with its competitors created the price-war that made prices to drop for the consumers of IaaS, and this resulted in profit margins to shrink. If Rackspace was a bit more like Force.com, and had a solid software environment to go along with its hardware offering, then it would have been difficult to force a company like Rackspace to take a step backwards.  
Charlie Babcock
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Charlie Babcock,
User Rank: Author
6/4/2014 | 3:30:25 PM
Cloud price cutting is cutting out some competitors
Those forced to take a step backward, such as Rackspace, in this release of this Magic Quadrant, illustrate how hard it is to compete in the new era. The builders of new, giant infrastructure can cut prices repeatedly; you can't.

 


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