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Investment Implications of Cloud Computing

Cloud computing will be disruptive to traditional data center technology vendors.

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The impact of cloud computing on the enterprise computing landscape is reminiscent of the shift from big mainframe systems to client server computing in the '90s. A step change in the economics of computing is driving this transformation and creating opportunities for new providers, while threatening the established business models of traditional application software and data center technology vendors. Established vendors such as  Microsoft (MSFT),  SAP (SAP),  Cisco (CSCO),  IBM (IBM),  HP (HPQ),  Dell (DELL),  EMC (EMC), and  NetApp (NTAP) could face significant headwinds as public cloud computing gains customer acceptance.

The Public Cloud
Cloud computing has evolved into a broad term encompassing all manner of remotely delivered computing resources and services. Broadly speaking, uniform IT services provided remotely to multiple customers from third-party controlled data centers have been christened the "public cloud."

Sunit Gogia does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.