The War Of Cloud Computing Services Has Just Started (P.2)
From 2016, the playground of cloud computing suppliers will be flattened. The battle between the giants will actually start. The first phase of the cloud computing war has been carried out on only two fields: price and performance.
For years, Amazon has decreased the price 44 times in order to better compete with new rivals joining the cloud computing sector. Last year, Google confirmed that the fee of using GCP would continue to decrease according to Moore's law, even when this law came close to the breaking point. In the future, the big three will surely continue to cut prices so as to really convince businesses moving their operations from the local computer system to the cloud computing system.
But not until the next phase, the cloud computing war becomes really interesting.
Price competition is a game that any strategist would like to avoid as much as possible, and even potential corporate giants such as Amazon, Microsoft, and Google, are not an exception. Sooner or later, the cloud computing service providers will have to make a clear distinction with their rivals. They cannot always discount the price of their service anymore. This is the time that the characteristic strengths of the giants become the key to victory.
For Microsoft, profits coming from software and services became a standard as well as the skillful combination between Microsoft’s products like Azure, Office 365, and OneDrive for Business. For IBM, businesses will get the sustainable values from the advanced solutions for each field. For Google, the amazing technologies which used to be the key of the success of the company's services may be its primary weapon to win this war.
Being at the leading position, Amazon's cloud computing array may find itself in a position that is not too different from the company’s e-commerce array. The rivals that have cheaper and more diversified services will threaten Amazon. However, now, AWS is still being on top in both scale and quality, and Amazon will not lose the sympathy of its programmers.
Finally, we will see more decisive steps from the other potential players such as Oracle, or even the surprising names like Facebook. These companies have attained a certain success in the business segments that are involved, but still independent of the cloud computing sector. And if they really step into the fight with Google and Amazon, Oracle and Facebook certainly will find a way to take advantage of their own strength as a useful tool.
The cloud computing war will not go into the way that “the winner win all", but certainly, the rivals will use everything they have to recruit talented software developers and business leaders. We can hardly predict which cloud computing provider will have a significant breakthrough in the future, but the cost of cloud computing services will undoubtedly continue to decline and the IT issues will be addressed more effectively.
The war of cloud computing service participants had really started.