Seeking Alpha

"A retailer (Amazon), an entertainment company (Netflix), an advertiser (Google), a...

"A retailer (Amazon), an entertainment company (Netflix), an advertiser (Google), a résumé site (LinkedIn), and an address book (Facebook) have ended up shaping the future of [tech] infrastructure," writes a bemused Ashlee Vance. Unsatisfied with the solutions offered by the likes of IBM, HPQ, EMC, NTAP, and ORCL, Web giants have used home-grown hardware and open-source software projects to fulfill their needs. Their ideas and technology are already upending the server industry ... and their impact stands to grow as more companies buy in.
Comments (15)
  • Michael Bryant
    , contributor
    Comments (5420) | Send Message
     
    But (IBM), (ORCL), and (EMC) will always be here. Nobody can handle the massive data during the Olympics like (IBM), who also has a patents on 1000s of technology.
    16 Mar 2013, 01:04 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (763) | Send Message
     
    They'll always be there, the question is how much their hardware sales (which often drive software/services sales) will grow. What's happening right now in the server industry is telling.
    16 Mar 2013, 02:24 PM Reply Like
  • Aristiphones
    , contributor
    Comments (1327) | Send Message
     
    really? what's DRIVING tech is SECURITY...not "open source" (aka "stealing." data must be SECURED to have value as any hacker with a password can download just about anything "that you thought was yours" right now. slowly but surely these "gates" are closing however and as the means of production gets defended "at all costs" so will the far more valuable "creative output behind the means." i am watching the development of the Nissan Leaf very closely..."a closed and secure communication system" in addition to a car. currently they're the only company that offers that. all of them will shortly however since "what goes on in a car" can be answered simply "what doesn't go on in a car?"
    16 Mar 2013, 11:10 PM Reply Like
  • Pacojoe7
    , contributor
    Comment (1) | Send Message
     
    The Olympics data is a drop in the bucket compared to the massive amounts of data being generated today by the web and being stored and analysed around Hadoop on hundreds of thousands of low cost (i.e not IBM, HP, Dell, EMC) servers and storage. IBM and others are scrambling to figure out how to compete with their legacy technology, and what made them successful yesterday will not in the future.
    16 Mar 2013, 11:10 PM Reply Like
  • freeze1617
    , contributor
    Comments (3) | Send Message
     
    Besides Google do any of these companies make more than the ones you put down? Look at Amazon 150 billion market cap and they might make 800 million this year. Facebook is a joke, there will be another social network that will be the new hip thing. Also soon advertisers will know that no one pays attention to online ads.
    16 Mar 2013, 02:27 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5420) | Send Message
     
    Maybe I'll start a social network, but wish I knew how. But right, all I do is steal the idea of the next social network and make it my own.
    16 Mar 2013, 08:57 PM Reply Like
  • FormerStorageGuy
    , contributor
    Comments (8) | Send Message
     
    This is 10 year old "news".

     

    The key is that this handful of companies build data centers on such a scale, and use compute/storage/network resources in such a consistent way, that they could absorb the work (the value add reflected in pricing) done by the software in a storage system (NTAP, EMC), the database (ORCL, MSFT), etc into their application software and customized Linux on which their application runs.

     

    The nature of those applications is also parallel and replicated, without the need to commit that bank deposit you just made once, and only once, to an account balance that needs absolute integrity. So much of the infrastructure allowing enterprise applications to achieve that level of robustness is irrelevant in Google type applications.

     

    This then allows them to buy bare hardware from the southeast asian ODMs, which is the supply chain typically used by the nominally hardware companies named. There is very much a disintermediation of the traditional hardware companies...but it only applies to a handful of named customers. The market in general can't duplicate this disintermediation, because customers do not have a single application with enough scale, much less one whose software is written in house.

     

    Google's first computer rack was on display at the Computer Museum in Mountain View last time I was there (probably 5 years ago). Took this track from the very, very beginning.
    16 Mar 2013, 03:43 PM Reply Like
  • Aristiphones
    , contributor
    Comments (1327) | Send Message
     
    if Microsoft successfully takes Dell private (and there's a war going on to destroy Dell Computer to prevent this from happening) then Oracle will finally have some competition...though i doubt in the enterprise space. I would not be surprised if Oracle buys Hewlett Packard and a "war for the data security of the consumer" gets underway in earnest. amazingly YOUR Government "could care less." i did note "they fined Google a couple million bucks." hmm. gee...tracking people in real time as they leave there house to do "their thing." i wonder what could be wrong with that...
    16 Mar 2013, 11:09 PM Reply Like
  • freeze1617
    , contributor
    Comments (3) | Send Message
     
    HPQ is too large by market cap and just the general size of the company, to be bought out. ORCL likes to bottom fish on former high flyers. HPQ is getting some upgrades now and a turn around seems to be coming. Don't under estimate Meg Whitman she is not new to this.
    18 Mar 2013, 05:46 PM Reply Like
  • BAHAMAS1
    , contributor
    Comments (1897) | Send Message
     
    Sell IBM "short" and you and your portfolio loses. It's THAT SIMPLE !
    16 Mar 2013, 05:14 PM Reply Like
  • David Jackson
    , contributor
    Comments (1230) | Send Message
     
    Perhaps a better description than "A retailer, an entertainment company, an advertiser, a résumé site, and an address book" would be:

     

    "5 large consumers of technology hardware and software, who, because they understand tech, aren't happy with the cost/benefit of the leading tech suppliers' products."

     

    That is indeed worrying for those suppliers.
    16 Mar 2013, 07:53 PM Reply Like
  • moneyTalksBSWalks
    , contributor
    Comments (193) | Send Message
     
    This is not going to results in IBM, etc going out of business. More than availability, the issue is likely cost. These firms are large enough to create their hardware/software solutions and absorb the fixed costs that come with it. The majority of firms consuming services, products from IBM, Oracle, HP etc either don't have the desire or the capacity to become tech shops as opposed to being tech consumers.
    16 Mar 2013, 09:08 PM Reply Like
  • ConservativeOutperformer
    , contributor
    Comments (541) | Send Message
     
    Bingo.... So what I'm hearing is that a couple companies who employ thousands of engineers don't want to buy large pre-assembled computer hardware and pay IT consultants huge fees to set up their computing needs?

     

    Earth shattering analysis.....
    16 Mar 2013, 11:02 PM Reply Like
  • OGSuarez
    , contributor
    Comments (110) | Send Message
     
    Does not sound very scientific at all!!!!!!!!!!!
    17 Mar 2013, 11:46 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5420) | Send Message
     
    Nope, it's common sense. All except (NFLX) dominate their industry.
    18 Mar 2013, 09:52 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|