NEW YORK ( TheStreet) -- The cloud market has not evolved the way it was supposed to.While public clouds like Amazon.com's (AMZN - Get Report) AWS were expected to grab a lot of business from start-ups and corporate marketing departments, it was assumed that mainstream information-technology people would be afraid to embrace it.
Google (GOOG) saw this train leaving the station and matched Amazon's prices. Microsoft (MSFT), whose Azure cloud platform was first sold as a more sophisticated, Windows-centric public cloud, chose to offer base infrastructure and matched Amazon's prices as well. The public cloud price war has hammered Rackspace's results, and stock price. It seems to have discouraged other OpenStack supporters, like Dell (DELL), which said this week it would resell partners' cloud services rather than create its own OpenStack cloud. You might say a cloud hangs over the OpenStack cloud. Without a price-competitive entrant in the hot part of the market - public cloud - it's hard to see how it will ever gain traction as a replacement for existing computing infrastructures. I suggested this represented a problem to IBM on another channel.