Rough weather seen for cloud providers in 2014: Gartner

The coming year could be a challenging time for cloud adopters as about 25 per cent of the top 100 IT service providers may not be around by the end of 2014, according Gartner Research.

As many as three in four cloud providers could be either forced out of business due to bankruptcy or gobbled up by larger companies, the research firm said. At the same time, Gartner also predicted that the number of organizations offering you cloud services will rise by 80 per cent by the beginning of 2014.

At the moment, providers are under great pressure to cut cost, said Gartner analyst William Maurer, as he told attendees at the Gartner Data Centre Conference in Las Vegas to give their cloud providers a chance to “make some money.”

“You need to make sure that your service providers are successful,” he said. “…Don’t take all the money off the table because if you do, you are not going to have a lot of them around.”

The cloud service market is a ‘buyer beware” arena, according to one of the conference attendees, Michael Salvador, technical solutions manager for networking products firm Belden Inc. He said adopters need to do their research carefully because there is “no safety net out there.”

Salvador said concerns about cloud risks could prompt some customers to seek out larger vendors even if smaller providers may offer better prices and additional guarantees that big providers do not.
Read the whole story


Nestor E. Arellano
Nestor E. Arellano
Toronto-based journalist specializing in technology and business news. Blogs and tweets on the latest tech trends and gadgets.

Would you recommend this article?


Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.

Jim Love, Chief Content Officer, IT World Canada

Featured Download

ITW in your inbox

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

More Best of The Web