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Director, OpenShift Strategy at Red Hat. Founder of Rishidot Research, a research community focused on services world. His focus is on Platform Services, Infrastructure and the role of Open Source in the services era. Krish has been writing @ CloudAve from its inception and had also been part of GigaOm Pro Analyst Group. The opinions expressed here are his own and are neither representative of his employer, Red Hat, nor CloudAve, nor its sponsors.

8 responses to “Handful Of Monopoly Infrastructure Players – A Shortsighted Idea”

  1. maluvia

    Your points are well made.
    I would have thought by now that with the history of IE vs Netscape and later IE vs Firefox, MS vs Yahoo, and later Google, Windows vs Mac vs Linux, etc., that it would be obvious by now that the world is too big to be run by an oligopoly of players.

    First, the inevitable price-fixing that occurs with that kind of monopolistic structure drives people to seek alternatives and stifles innovation.

    Second, people simply resent having their choices so limited – and again, seek out alternatives.

    Clearly, big corporate enterprises and governments are comfortable with, and will remain so, in their partnerships with a few ‘big players’ and don’t mind the added cost, which they can easily absorb.
    They value the massive infrastructure, and putative security these providers can offer them.

    But it’s a big, big world – growing bigger every day in terms of the participants as more and more end users who previously had little access come online and change the internet ecosystem.

    Not everyone’s needs will be served by a few monopolistic cloud service providers.
    There will be competition and innovation which will level the playing field and ensure both continuing innovation, accessibility and affordability to the global marketplace.

    Perhaps a ‘Cathedral’ for the large enterprise and governmental end users, and a ‘Bazaar’ for everyone else.
    But I’m betting on the ‘Bazaar’ as the source of the creativity and innovation which will drive progress and define exactly what this Cloud ecosystem is and will become.

  2. Krish

    Very well said Maluvia. The bazaar will eventually make the cathedral irrelevant and I am a strong believer in it.

  3. Looking East: Singapore Prepares For Widespread Cloud Adoption | CloudAve

    [..]
    Handful Of Monopoly Infrastructure Players – A Shortsighted Idea
    [..]

  4. Amazon’s growing cloud computing business, and why “one cloud” won’t rule them all

    [..] In researching this article, I came across Krish’s recent CloudAve piece,Handful Of Monopoly Infrastructure Players – A Shortsighted Idea, which I’m not sure how I missed. Great article that compliments my own with a more “philosophical” and macro-economic perspective. [..]

  5. Public Vs Private Cloud Brouhaha: My Take | CloudAve

    [..] I think the Cloud Computing market is not mature yet. If we push for the “only public clouds” idea now, the existing cloud players and few others like Microsoft who have enough financial muscle will capture the market. Then, we will end up with a handful of monopoly players even before many countries wake up to the idea of cloud computing. My experience, living through the desktop era, teaches me that it is not a good idea to allow monopolies in the marketplace. This is one of the reasons why I don’t want the public clouds to take off at this time. Let the technology mature and let more and more players start playing the cloud game. Once the market matures, it will be difficult for few monopoly players to emerge (See my postHandful of monopoly infrastructure players – A shortsighted idea). [..]

  6. The Impact Of CA’s Acquisition Of 3Tera | CloudAve

    [..] This could also be considered as a beginning of consolidation in the infrastructure space. Even though I don’t believe in the idea ofmonopoly of handful of infrastructure players, a shakeup through consolidation will always be there in a maturing market. This just shows the maturation of the cloud computing market leading to more and more enterprise adoption. [..]

  7. Looking Back 2010: OpenStack Offers Promise | Krishworld

    [...] we will end up with a more open and federated cloud ecosystem. In fact, in July 2009, I laid out an argument, based on political, philosophical and macro-economic considerations, against the “handful of [...]

  8. Why Verizon’s Acquisition Of Terremark Is Not Exciting

    [...] I like the economics of abundance and I see a world of open federated cloud ecosystem consisting of large number of infrastructure players than just a handful of monopoly players. When such an ecosystem emerges (well, it will emerge [...]