Understanding the cloud computing market drives wise purchasing decisions

Friday, July 01, 2011

Cost-efficiency and flexibility are the main drivers of cloud computing purchasing decisions, according to TechTarget, which may make brand names in the market less valuable than many might think.

As an example, the tech news website said that the recent purchase of vBlock VCE services - a well-regarded cloud computing brand - by VoIP provider 8x8 represents a potentially ill-advised trend. While the brand recognition provided by the vBlock name will likely drive sales over the short term, the emphasis on lower costs and efficiency from cloud service providers might make such concerns less important in the long run.

"What if, instead of spending money on vBlock, 8x8 figured out how to build a cloud infrastructure itself, gained experience, got smarter, more flexible and more self-sufficient, and was able to take more risks because it wasn't locked into VCE?" TechTarget senior executive editor Jo Maitland posited.

Public cloud computing in particular could be a tough marketplace to compete in, according to other experts, because of the difficulty of differentiating one's own offering from the competition.