This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Price Sells Cloud

Not everything in the price list is transparent. What's an extra-large? What's the difference between a high storage, high input-output, and high CPU instance? Who cares? Amazon keeps cutting prices, forcing even Google (GOOG) to respond, InformationWeek reports, and the price war shows no signs of abating.

Sorry but there's no hand-holding, no "customer service" at those prices. But the customers don't care.

There's something else happening as a result of these low prices. The customer mix is changing, from computer people who care about issues including customer service, to marketing people who are building a new ad-supported mobile web with lots of TV on it, CIO Magazine writes.

So what IBM considers a bug is, to the market, a feature. Self-service and open source mean cloud prices are even lower than they might otherwise be, while demand for public cloud is exploding. Who cares if cloud isn't being used for business process management? It's creating new business.

Cloud isn't waiting for computer people to adapt to it. All the talk about "private cloud" -- cloud-based systems hosted at a company premises -- or "hybrid cloud" -- moving seamlessly between these private clouds and public clouds such as Amazon's -- is just so much noise to the people driving the market.

Cloud is like many other computing revolutions I've covered in my career, from the PC itself to the Internet to mobile. The experts aren't driving the train, and it may take them years to catch up with what's happening in the market right now.

At the time of publication the author had positions in IBM and GOOG.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMZN $436.72 0.16%
AAPL $125.62 -0.30%
FB $87.25 -0.34%
GOOG $525.16 0.44%
TSLA $266.66 -4.70%

Markets

DOW 17,776.91 +93.33 0.53%
S&P 500 2,081.34 +12.58 0.61%
NASDAQ 4,997.4590 +5.5190 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs