Once you eliminate Amazon from the list of infrastructure as a service suppliers, you have a list of 19 vendors that earn $20 million annually. There are many earning $10 million in annual revenue, according to Lydia Leong, Gartner analyst.
The data suggests that to succeed in this market, you have two possible routes, Leong argues. A company needs a giant sales channel with a ton of feet on the street and existing relationships, or a company needs excellent online marketing and instant online sign-ups.
A third possible route is that you make it easy for people to white-label and resell your service, says Leong.
As with most other new businesses, there will be a ton of consolidation as surviving providers amass enough scale to survive.
Wednesday, August 22, 2012
IaaS is Amazon, 19 Companies Earning $20 Million Annually, Lots of Firms Making Only $10 Million
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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