Signs of a Maturing Cloud Industry{1}

In Todd Neilsen’s article featured on Wired named, “6 Signs of a Maturing Cloud-Computing Industry,” Neilsen describes what he sees as tell tale signs of how the cloud-computing industry is not only doing well but flourishing. Just like with most industries, the cloud-computing industry, from what Neilsen explains, is starting to produce specified niches in the market. Businesses realize that cloud-computing will be the next generation. If any businesses would like to stay alive in the market it should seem obvious to them, and to everyone else, to jump on board the “cloud-computing train.” According to Neilsen, “The biggest niche seems to be in the security segment. There were a couple of vendors of cloud-based authentication technology, cloud-based wireless routing management and technology, cloud-based VPN management and dumbed-down firewalls managed in the cloud and many more.” Security is definitely one of the more important things to be aware of. Especially when it comes to personal property, you can never be too safe. Another sign is what Neilsen describes as the “Death of Traditional Models.” More specifically how software is being installed. As of recently, many software providers would much rather have users download and install software straight online than having to send out a CD or DVD to install something. Neilsen also explains how the “death” of backups are starting to show up. “Deaths” are also happening in backup. A backup solution without a cloud option is not a viable option anymore. As the cloud continues to grow, we will continually see technology fade away. As I mentioned before, companies that plan on staying in the market should consider joining the cloud-computing game if they want to remain not only successful but alive. I found it interesting how the author of the article put it, “It is like watching 3-year-olds playing soccer. They are all following each other around in a pack, while a few lone wolves actually play the game.” To echo this example, Neilsen finishes the article with, “The Bottom Falls Out.” Simply meaning only the companies offering a better, more stable, more secure product or service which has differentiated itself in such a contested market will be able to “actually play the game.” From a consumer’s standpoint it’s definitely exciting to see what different options would be available to the market. However, from the businesses perspective it’s an all out war zone. Eventually, those defined as survivors and those labeled “dead” will be apparent.

I thought this article was very interesting. However, I only touched on the subjects I found to be the most intriguing. Seeing a promising new industry flourish so quickly doesn’t happen every day nor does it happen every year. In the next couple years we can expect to see a variety cloud-computing technology arise, but soon enough we’ll see what businesses are capable of staying in the industry. The way I see it, it’s just like the mobile industry. There were tons of different service providers when the cell phone came out. Now it seems the industry is dominated by Verizon, AT&T, and T-Mobile (and even T-Mobile was in danger of being acquired by AT&T).

“6 Signs of a Maturing Cloud-Computing Industry.” 2012. Wired, Todd Neilsen. Retrieved 13 May 2012.