If Google and Microsoft Chase Amazon, IT Will be Big Winner

If Google and Microsoft chase Amazon’s infrastructure service business, IT could be a big winner as prices plummet.

As I was reading Liz Ganne’s preview of Google I/O on All Things Digital this morning, one thing popped out at a me: a small blurb about Google getting into the cloud infrastructure business. Could Google be going after Amazon’s EC2 business?

And according to GigaOm, it’s not just Google. Microsoft could also soon be in play as well with an Infrastructure as a Service offering. If these rumors are true (and it’s never official until it’s announced), hold on tight, boys and girls, because prices could be about to dive.

Can you imagine these three companies going head to head offering storage and servers? Talk about commoditizing a market. With these three players involved, online infrastructure services, already cheap, will be available for a song.

Last March I wrote a post on this blog called, Amazon Proves Cloud Competition Good for IT, and this was when Amazon was dropping prices without competition from players the likes of Google and Microsoft. The question is how can these companies hope to make any money doing this once they are all in the business.

From and IT perspective, you simply can’t lose if Google and Microsoft get involved. I have often referred to the chess game that goes on between Apple, Google, Microsoft and to a lesser extent Amazon and Facebook; as ‘The Clash of the Titans.’ Every time one of these companies makes a big move, the other has to counter.

Amazon has made a lot of money in the infrastructure business and it hasn’t gone unnoticed by the competition, but the irony is that once these two companies get involved, it will become much harder for any one of them to make any money selling these services.

As Wired reported, Google always prided itself in providing the notion of infinite infrastructure for itself, what it refers to as warehouse scale computing. Up to this point though, it has been content to be a platform on which developers could develop applications for the Google system. With this move, Google moves into a pure infrastructure play, it has avoided to this point.

“Google has long touted that benefits of its “platform cloud” model, as opposed to Amazon’s “infrastructure cloud.” But as with the company’s recently revamped Chromebook laptop, this shows that Google is determined to compete for the hearts and minds of businesses — and actually make some money along the way,” Cade Metz wrote in the Wired article.

Whether Google or anyone can make money, once all these giants all get involved is an open question, but as an IT pro, you can just sit back and enjoy the competition because chances are it’s going to put a lot of downward pressure on infrastructure service pricing, and from your persective, let the competition begin because it’s going to work very well for you and your budget.

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