The Register: Cloud computing aka 'The future is trying to KILL YOU'

InsightaaS: The Register is a leading global online tech publication, with more than nine million monthly unique browsers worldwide. It combines broad coverage of IT industry news with an informed POV – served at least occasionally with a healthy dollop of tongue-in-cheek humour. “Cloud computing aka ‘The future is trying to KILL YOU'” illustrates why so many millions look to the Register for perspective. In it, author Jack Clark (known on Twitter as @mappingbabel) looks at recent developments at Rackspace, SAP, IBM, EMC, HP, Oracle and Cisco, and then contrasts events at these firms with news emanating from Cloudera, Amazon, MongoDB, and cloud-dependent startups like SnapChat and Airbnb, and with the success of Google and Facebook. Clark then digs into the trends that are reshaping opportunity in the IT industry, and their implications for current and emerging market leaders. His conclusion? “HP, Cisco, IBM, Oracle, Dell, and other big incumbents should be extremely worried: every trend in technology points to a future that has no bias toward their current profit-generating businesses.”

Analysis What do all ailing enterprise IT companies have in common? Trouble in their core businesses due to the rise of cloud computing.

The repercussions that the technology is having on the IT business are all around us, and its effects on the industry are as inevitable as gravity on a dropped bowling ball. Cloud computing’s rise spells trouble for any traditional Western IT company you care to name, and has already started to bite into them.

Just how serious are the effects? Well:

  • Rackspace was reported on Thursday to be in talks with Morgan Stanley to help it partner or sell itself, as the effects of the cloud pricing war among Google, Microsoft, and Amazon bite into its business.
  • SAP is reported to be carrying out some “unavoidable” layoffs to help it restructure itself for the cloud while its earnings from traditional on-premise software continue to drop.
  • IBM has agreed to sell its server division to Lenovo due to the margin-slump in hardware…

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