The price wars that are the focus of the battle between the big and small guys of the cloud computing world are just the beginning, according to Mike Chase, CTO of dinCloud. The cloud wars are evolving, and there are already strong signs of the next major battle—the migration war.
Cloud pricing is having an effect on customers and end users. Particularly, the entry level service for cloud is storage, which continues to drop in price. Not because it's a major profit center, but because it's the loss leader tht brings in customers that may want to consume other cloud services. And the low prices are something smaller players can't compete with.
Consider last year's Nirvanix shutdown debacle, after all. The pure-play cloud storage company pulled the plug on its cloud storage services, and the reason seemed to be due to the finances around cloud storage. In a commodity player, Nirvanix simply couldn't compete against the ridiculously low cloud storage costs of the big players. There's simply no profit in a low-margin business.
Chase noted that storage is what brings customers to the cloud, but it's security that has kept them away. That has been changing, though. There's more trust in the cloud in general as technology and procedures have improved.
But forget the battle over storage, security and price. If you look at the strategies and tactics of existing cloud players, the next battleground will be over migration.
"The migration war is going to come next. Microsoft is building migration tools directly into Windows Server so you can migrate to their cloud," Chase told Talkin' Cloud.
And it makes sense. Consider the number of migration services that have launched over the last several months. The next phase of cloud is all about providing a portal to cloud computing technology and enabling migration to individual cloud platforms.