Thursday, September 9, 2010

Cloud Computing Market is Bifurcated

Newer enterprises founded within the last 10 years are twice as likely to use cloud computing as are older firms, says the Yankee Group.

On the other hand, though cloud usage is significantly rarer among older enterprises, which hold a conservative view of the technology, those firms are most likely to choose more established names for their cloud needs, especially service providers and vendors such as AT&T, IBM and Microsoft, than newer cloud upstarts.

As often is the case in the communications and technology businesses, there is a natural bifurcation of supply and demand. Enterprises may prefer to work with other substantial companies, while small businesses will be more comfortable using smaller suppliers.

The smaller and newer firms seem to be optimistic that the cloud will evolve into a primary IT platform over the next several years and are willing to buy services from newer cloud companies coming from outside the traditional IT market, such as Amazon, Google or Terremark.

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