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Cloud Computing: Consolidation to Wipe Away a Quarter of Existing Top 100 Vendors
Gartner is predicting a major reconsolidation of cloud vendors, so much so that by 2015 25 percent of today’s top 100 IT cloud service vendors will be gone. That presents a certain amount of risks to the buyers of these services.
Of attendees at the recent Gartner Data Center Conference, 50 percent said that adoption of cloud-based solutions presents a great deal of risk, 33 percent said that it was ‘somewhat’ risky, while just 12 percent thought that there was little risk. But, despite the risk, 80 percent of organizations were already using cloud-based services at the end of 2013.
William Maurer, Gartner analyst, said that “there is a real risk with these vendors, but acquisition will be the main exit. You need to make to make sure that your service providers are successful. Give them a chance to make a reasonable return on their investments, give them a chance to make some money. Don’t take all the money off the table, because if you do, you are not going to have a lot of them around.”
Michael Salvador, solutions manager at Belden, told Computerworld that “we’re in the phase of buyer beware with cloud. You better do your research — there’s no safety net out there.”
