In Cloud Computing Environments, we see a significant switch in how the industry treats Datacenters. Cloud Computing and Big Data transform the way how we think about Datacenters. But why should that be so?

First of all, we have to look at how Servers and the market looked like some years ago. Many companies bought their Servers. Small and Medium Businesses (SMBs) used to run their own Servers, maintain them and own them. A datacenter often consisted of only one rack or some Servers. This means that there is a polypoly on the demand side (buyers). On the supply-side, we had some companies such as Dell, HP, IBM and others. This is named an oligopoly. In this market situation, the supply side is stronger and negotiations are traditionally harder. If you are a large enterprise, you could generally get better conditions.

Nowadays with Cloud Computing, the datacenter design is shifting dramatically. Small and Medium Businesses will rent their services such as Software (SaaS), Platforms (PaaS), Data Storages or Infrastructure. We will see less datacenter providers but large providers will have more datacenters at high capacity. This means that the market is shifting from an polypoly to an oligopoly. Large providers of Cloud Platforms will now buy more Hardware at better conditions. The Datacenter will look very homogenous as buyers will switch towards commodity Hardware and easy to replace Systems.

 

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