Cloud is not just virtualisation

To some, transformational technologies such as cloud can be a game-changer. To others, it's simply a hyped up version of outsourcing. But cloud computing is not just about providing a siloed set of hardware, putting a hypervisor on top of it and calling it a cloud.

It is a step in the right direction, but it does not provide any of the agility or capabilities that everyone is talking about.

Some hosting providers are offering the same services now as they were 10 years ago but marketing them as cloud services instead. These hosting providers are blinkered to the potential for cloud services. Their focus is totally on the revenue from standard services and they are cashing in by rebranding them as cloud offerings.

Some of the features of cloud computing such as ‘pay-as-you-go’ and the ability to scale services on-demand literally terrifies them. They say their customers are not interested in on-demand style cloud services, but this is because those same customers are going to the big players like amazon and microsoft for them instead.

Too many companies are focused on the here and now but not on where things are going. The writing has been on the wall for some time now but cloud computing is bringing the issues to the foreground. Cloud technology offers opportunities to reduce costs, increase revenue and create a competitive edge.

Information technology has now become a service which can be bought and sold. Hosting companies must wake up to the fact that they now have to compete in a growing marketplace with agile, cost effective services or risk losing out.