BRS analyst Joe Sweeney said Monday’s announcement was very important for Microsoft in Australia. He said the cloud infrastructure market would rapidly consolidate to two main vendors: AWS and Azure, disappointing IBM, which has invested in local SoftLayer data centres as part of a $1.2 billion global bid to change its fortunes.
“IBM’s capabilities lie in placing managed services around its cloud, and it will remain a distant competitor to the two giants,” Mr Sweeney said.
“Local cloud players will also face unsustainable competitive pressures from the top cloud players, and like IBM, rely upon providing managed services to remain viable in the long run. Even then, there will be increased competitive pressures from lower-cost, international specialists.”