Now is the time to democratize the IaaS market

Cloud computing is everywhere. That’s what we all know. In fact, the proliferation of cloud computing is probably the most influential technological advancement in the 21st century, and so far its implementation has been widespread and influential.

Rewinding for a decade or so, it wasn’t yet clear how devastating the cloud was. In 2008, Oracle CEO Larry Ellison was famous for pointing his finger at cloud computing, suggesting that it was an example of the emperor’s new outfit. “The computer industry is the only fashion-driven industry rather than women’s fashion,” he noted the growing debate about the cloud. “Maybe I’m an idiot, but I don’t know who’s talking about what. What’s that? It’s completely awkward. It’s insane. When does this idiot stop?”

Ellison was certainly not alone. Throughout the 2010s, commentators, analysts and journalists have always questioned whether cloud computing can withstand hype. Today, these questions were highlighted and answered.

Cloud computing has transformed the world of technology over the last two decades. This has revolutionized the way organizations store and analyze data, procure and use software, and basically build IT systems.Enterprises outsource hardware, software and network needs On their drive..

The cloud enables startups as IT investments shift from capital investment (capex), which requires organizations to pre-purchase and then manage their own IT infrastructure, to operational spending (opex – pay-as-you-go). Has played an important role in doing so. To access the same computing power and software as a multinational corporation. In other words, the cloud has always promised to democratize IT by leveling the competition.

But the cloud sector itself goes against its own success. The IaaS (Infrastructure-as-a-Service) market is monopolizing, with a few technology giants gaining an increasingly strong grasp of the cloud. This is an issue that needs further investigation.

Exclusive form in the IaaS sector

According to the report, the global IaaS market grew 37.3% in 2019 to a total of $ 44.5 billion, up from $ 32.4 billion in 2018. Report released by Gartner last August.. However, this rapid growth is being enjoyed by selected groups.

Gartner found that Amazon alone held a 45% market share in the IaaS sector through the provision of Amazon Web Services (AWS). Microsoft, Google and Alibaba together own an additional 32%. The problem is that more than three-quarters of the IaaS market is dominated by four tech giants. In fact, such monopolies are a problem in every consumer and business market.

Anti-competitive practices tend to curb innovation and harm end users. So it’s not surprising that there is increasing debate about how legislators and regulators are scrutinizing contract pricing, self-priority evidence, and whether lock-ins are hurting customers. ..

In 2019, a report jointly produced by an Internet economy think tank and business consultancy Roland Berger provided the government with a six-step strategy to prevent a monopoly on the cloud market. In the United States, the House Judiciary Committee and the FCC have already begun investigating AWS business practices.

Why you have to change things

The cloud market, especially the IaaS sector, is monopolized. so what?

As mentioned earlier, monopolies can hinder customers (more choices usually empower customers). In addition, it can hinder innovation. And it is this second point that deserves our attention.

Cloud computing, like all technology disciplines, must constantly evolve and strive to provide the best services for consumers, businesses and society. And one of the areas currently under the microscope is the impact of cloud technology on the environment.

By 2025, according to Greenpeace, the technology sector could consume 20% of the world’s total electricity. This is a 7% increase over the current level. This is due to the expansion of cloud computing and the further development of new technologies such as: As artificial intelligence that requires a large amount of computing power.

Therefore, it is essential to develop a more environmentally friendly cloud solution. Data centers need to operate on sustainable energy and become more efficient. Emissions need to be monitored and scrutinized. Customers must be able to choose a cloud provider that knows their cloud usage footprint.

so NexGen cloudWe are proud to be able to lead the transformation of more environmentally friendly and sustainable cloud services. Today, all of our systems are powered by renewable energy, with hydropower being the main source. We take a global approach to sourcing a sustainable, ultra-low emission supply. For example, hosting a data center in northern Sweden can take advantage of the natural cold to keep your servers cool. This saves the operation of energy-consuming air conditioning systems.

New businesses are disrupting the status quo, as seen in almost every area of ​​society. And addressing environmental issues is often a top priority. But of course, they also aim to provide improved service to their customers, reduce costs and create more choices in the market. You have to accept this.

The cloud sector is booming and has been going on for some time. But this cannot be taken for granted. Allows tech giants to continue to tighten the sense of urgency in the industry. By driving competition and looking for new and innovative solutions, the outlook for the cloud market as a whole is significantly brighter.

Chris Starkey is the founder and director of NexGen Cloud, whose mission is to provide cheap and affordable cloud computing to everyone. Headquartered in London, NexGen Cloud is working with Cudo Ventures to disrupt the cloud computing market. By establishing data center operations in Sweden and Iceland, the company can offer infrastructure cloud computing as an environmentally friendly service at a lower cost than mainstream providers. NexGen Cloud also provides investors with the opportunity to access the cloud sector and share the growth of the market sector by investing in computing power. Now is the time to democratize the IaaS market

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