New Delhi, April 22: As major cloud players like AWS, Google, Microsoft, Cisco, Oracle and HP are indulging in a price war for the cloud services offerings, an IDC study has predicted the smaller cloud service providers in Asia might be in for some tough times.
The study highlighted that the price war will make it difficult for small CSPs to sustain in Asia and they may have to be different to gain a competitive edge. Delivering basic and undifferentiated services on the same old pattern will not favor of these smaller providers, who may be acquired by larger providers, according to Chris Morris, AVP, Services Asia Pacific, and lead analyst, Cloud Services & Technologies, IDC Asia/Pacific.
He also pointed out that a consolidation in this space will take place, where smaller CSPs with strong customers base might be acquired by larger players.
Going by the current trend, Cisco has recently entered into several InterCloud partnerships with major SPs and these alliances are based on differentiated Infrastructure-as-a-Service (IaaS). The company is providing an efficient network service that is cost effective and flexible in terms of reacting to different workload demands.
He also suggested that cloud providers should use business-oriented apps if they want to generate sales volumes to maintain economies of scale.He predicted that these apps will drive consumption of the basic, low-margin services and trigger growth in adjacent markets.