Brett Azuma, SVP of Research, discusses our upcoming Hosting + Cloud Transformation Summit

Brett Azuma, SVP of Research, discusses our upcoming Hosting + Cloud Transformation Summit
Brett Azuma, Senior Vice President, Research, is serving as the Conference Chair for this year’s Hosting + Cloud Transformation Summit. We sat down with Brett to gain a little more insight on the people you will encounter at HCTS and some of the current issues that will be discussed.
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Does a cloud price war risk providers' profits?

If you believe the headlines, public cloud providers are in the midst of an aggressive war where margins are being slashed and profitability is at risk. But data from the Cloud Price Index shows that although some services are being reduced in price, across whole portfolios very little has changed; the cost of our application has dropped just 2.25% in 10 months. Although compute has reduced about 4% in price since October, no reduction has been seen in management, PaaS, big data or storage. Considering 50% of the CPI specification's cost is on databases, there are still opportunities for providers to make profits even with declining prices (and margins) on compute. End users can make greater savings by committing: best-case pricing has reduced 12% since last October.

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Henry Ford, Uber and the Innovation Revolution

Analyst: Owen Rogers

History is repeating itself. In the same way that the Industrial Revolution changed the lives of normal people, we are on the cusp of another revolution. The assembly line pioneered by Henry Ford is now used to great affect by the likes of Uber and Airbnb. And with little capital and just a few skills, the 'common man' has the opportunity to develop his or her ideas into profits. Innovation is no longer restricted to the big R&D departments – we are undergoing an Innovation Revolution.

The 451 Take

Revolution is a term commonly overused in marketing material. A revolution is a fundamental change in power – do most of the product features described in brochures as revolutions really shift power? No. But over the past few years, low capital access to technology, a vast array of educational material and the division of IT management have caused a shift in power. Innovation is no longer restricted to highly skilled, highly funded IT departments. Anyone with access to the Internet – some three billion people globally – can now learn, develop and innovate IT technologies. The power has shifted: service providers need to ensure that they can play a role in the revolution via interoperability, education and on-demand pricing.

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