In 2016 will see more public VPS cloud Vietnam offerings shuttered with additional development being funneled to the dominant company.
For years incumbent vendors pooh-poohed the rise of AWS, dismissing it as the sandbox of immature customers – SMBs and startups. When AWS become too large to dismiss so blithely, incumbent providers (both giants like HP/Dell and hosting providers like Terramark) proclaimed that what customers needed was an “enterprise cloud” offered by an organization that “understands enterprise demands.”
This may led to many years of conference booths splashed with taglines like “XXX delivers the enterprise cloud” and “YYY enterprise cloud: providing the best cloud infrastructure.” The clear hints of the taglines were that AWS does not provide a real robust cloud sufficient to enterprise needs, but that these companies understand what enterprises require and built infrastructure to deliver it. Part of the value proposition was use of “cheap VPS cloud Vietnam” gear from Cisco or EMC, in contrast to the usage of commodity kit by AWS and its cousins like Google and Microsoft; most of the CSPs also used a software infrastructure based on VMware.
There is only one problem with this: IT organizations have showed sign of preferring the “enterprise” offerings, and the proof of this is this year’s actions:
- HP throws in the towel on its public cloud service offering.
- Verizon appeared to tiptoe toward announcing it would sell off its enterprise assets, then tiptoed back from the precipice by stating it remained committed to its offering and was continuing to invest hundreds of millions of dollars / year. And then word came that it was moving forward with the sale.
- CenturyLink said that it was interested in selling off its data center assets. This is not a sign that the company hope to get out of cloud computing and it insisted of remaining committed to cloud computing … then two of its best cloud execs left the company.
- The ongoing VMware/Dell/EMC/Virtustream soap opera indicates that VMware has no defined next strategy for public cloud computing.
It is obvious that the bright future envisioned by the enterprises when they started their “enterprise-grade” cloud services has not developed as forecast. It has become obvious that there are three main cloud companies – AWS, Google and Microsoft – all of those which follow the cloud approach – self-designed hardware and a self-developed software control plane. Any other company which attempts to deviate from this approach may get some success, but it will be by addressing a narrow market niche; it might look successful, but it will pale in comparison to the numbers the main cloud companies will put up on the board.
People believe that in 2016 there will deliver the coup de grace to the VPS cloud unlimited bandwidth provider. Every cloud provider with ambitions to be a main market presence will have to fight on the territory of the big cloud companies, which will pose its own set of challenges. Among them will be:
- Investing the capital needed to compete with the larger providers. To develop in this league needs billions of dollars there are a couple of zeroes in front of the millions.
- Understanding that a provider’s cost structure must support these low prices, and the corollary that use of commodity gear and a free control plane are therefore required.
Recognizing that the service providers’ prices are the market expectation and users will not pay for putatively superior enterprise offerings.