Cloud puts its stranglehold on traditional hardware, software vendors

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.

Reader Comments

Fri, Apr 26, 2013

"Cheap utility supplied computing will ultimately change as profoundly as cheap electricity did our society. The current environment is ideal for suppliers of technology, they reap the benefit of overinvestment, but it is not sustainable." Nicholas Carr, The Big Switch. The current government procurement exemplifies this legacy over investment approach using your tax dollars. Many of the government IT systems that are procured, by the time they are actually implemented, are over budget, behind schedule, and the technology is already antiquated without giving government employees the modern web tools to improve citizen services and their team productivity while substantially reducing costs.

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