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A warning to IT vendors: Beware the cloud

Ross O. Storey | April 27, 2010
Major bank pulls no punches in guarded threats to traditional software providers

Come on, guys, change with the times. Your lucrative boxed software, annual upgrades and maintenance fees model is oh so 20th century and you have not shown yet that you realise the cloud computing wave that is going to dump on you.

Harte said CBA was now working with other financial services companies to assess where they could combine technology resources for non-strategic functions so that they could be commoditised and made into utility services.

If you dont change your ways, us financial services institutions are going to club together to share IT to further undermine your revenue model. And dont think we wont.

This story struck me as unusual in that bankers particularly those with national organisations are not known for being so outspoken. These are pretty tough words for vendors although they have probably already realised the cloud challenge.

After all, taking Microsoft alone, Steven Balmer recently said he was betting his organisations future on the cloud. He said: A year from now, 90 per cent of the 40,000 people working on software for Microsoft, would, in some way, be working in the cloud.

I would be interested in your thoughts on this issue: Do you think traditional vendors are changing their approaches to recognise the likely impact of cloud computing? Have they acknowledged that the rules of the game have changed? Let me know.

Ross O. Storey, currently the Managing Editor of Fairfax Business Media Asia, is responsible for the editorial content and production of MIS Asia, CIO Asia, Computerworld Singapore and Computerworld Malaysia magazines.     

 

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