Major IT and equipment vendors like Dell, HP and IBM are in for a tough time ahead with the rise of technologies like cloud computing. Expert CTOs in this field like Werner Vogels of Amazon, Lane Patterson of Equinix and Brian Stevens of Red Hat have talked about the growing “threat” that the cloud poses to enterprise IT vendors. Vogels says that companies will decrease their expenditure on hardware. Building one’s own equipment is also a cost factor that can be eliminated if one is going in for infrastructure on a large scale. Vendors are also taking on such challenges by getting into “combined engineering” of hardware and software.
A case in point being PureSystems from IBM. Stevens talks about the opposing forces in the data center industry namely large scale cloud computing and tin wrapped software. The price advantage rests with the company that can make its own equipment for cloud computing is going to enable the operation of more and more internal apps of an organization.
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