Cloud puts its stranglehold on traditional hardware, software vendors
- By Washington Technology staff
- Apr 23, 2013
InfoWorld reported that the rise in cloud computing is choking out hardware and software vendors, according to a Baird Equity Research Technology report. Companies are becoming more reliant on cloud-based services, and are growing away from traditional IT hardware and software.
The impact on such hardware and software is not all that great currently, but as time goes on – perhaps by 2016, InfoWorld reported – the impact will be much greater. The Baird report estimated that, for every dollar spent on Amazon’s cloud, there are three or four dollars not being spent on traditional IT, and this ratio is expected to grow, Infoworld reported.
It will be interesting to see, InfoWorld said, how the technology industry adjusts to these changes, and how these traditional IT hardware and software providers will prepare themselves for the change.