A long, thoughtful analysis of the business prospects for cloud companies was just published at Seeking Alpha. The author, Sunit Gogia, is a senior analyst with Morningstar and he looks at how the technology shift will affect the current large IT companies before settling into some predictions about today’s opportunities for investors.
His best advice: PaaS (platform-as-a-service) vendors have the biggest upside potential partly because the investment required to build such a platform will create a serious barrier to entry. He believes Microsoft and Salesforce are holding some of the best positions, and expects that IBM and Oracle will move into good spots before the window of opportunity closes.
In the short term, he believes IaaS (infrastructure-as-a-service) providers such as Rackspace and Amazon will do well. But he expects the market to become very crowded over time, and questions whether they will be able to hold onto their first-mover advantage.
Worth reading if you have any interest in cloud computing stocks.