I am reading an equity research paper published by an investment bank this morning trying to balance my portfolio and gain some insights. The most surprising thing to find is not related to any investment advice or market prediction. It is about their statement on cloud computing.
“The traditional IT services model is under attack – Cloud based revenues to see 30% CAGR over the next 5 years.” & “Losers will be the traditional outsourcing vendors”
Cloud computing has been in the limelight for a few years now and we are seeing both success and failures in the IT industry. But a statement from equity researchers is different. Especially it said traditional IT services model is under attack. Who and what are the “traditional” ? Do they mean only the falling revenue in IBM, Dell and Microsoft?