Cloud giants diversifying due to new entrants

Top cloud computing merchants continue to earn big bucks but an onslaught of new entrants is forcing them to rethink and rejig their strategy in order to maintain their dominance, according to a recent report.

Salesforce.com, Amazon Web Cloud Services and Microsoft Corp. (the top three cloud providers) have all exceeded US$ 1 billion in annual cloud computing revenues, according to Technology Business Research Inc., (TBR), a technology research and analyst firm in New Hampshire. However, the three and other veteran cloud vendors are starting to expand to new geographic territories and offering new products and services in order to differentiate themselves from the competition.
 
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For instance, TBR said, salesforces.com has ventured from sales management tools into application development. From being a virtual machine rental service, Amazon has taken to hosting entire databases in the cloud.

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Other hosting providers are now also looking to Latin America, South America and the Asian-Pacific region for new customers.

Sometimes, TBR said, diversification is also causing the cloud giants to compete against erstwhile partners. For example, Salesforce’s HR service is competing with WorkDay and Salesforce’s ChatterBox competes with Box, a cloud-based content sharing and collaboration business. Both Box and WorkDay were salesforce.com partners.

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Jim Love, Chief Content Officer, IT World Canada

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