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International Business Machines Corporation Message Board

  • mr_dinky_dot_bomb mr_dinky_dot_bomb Jul 10, 2013 12:30 PM Flag

    AMZN Cuts Some Cloud Service pricing by 80%

    Rackspace was down 6%.

    Ginni said at the recent Beirnstein conference that the way IBM entered cloud was to first work on private clouds for customers and then develop capacities for hybrid clouds with private and public elements. She pointed out that the majority of IBM's clients would want a private cloud for security.

    Apparently future exchanges will allow for the purchase of public cloud services on a spot basis.

    So the critics who said IBM was behind the curve are going to realize that public cloud services will be a commodity with thin margins. Some high flying cloud providers like Rackspace maybe Salesforce are going to see increasing margin pressure.

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