Is the HP vs. Dell bidding war for 3Par a sign we are in a cloud bubble?
By Larry Walsh
3Par is a storage vendor, but the reasons for the bidding war may be that 3Par equipment is particularly good for cloud-based data storage.
Let’s accept for a moment that there is a cloud bubble. If you remember the dot-com bubble, it’s clear that the cloud bubble is not like that. Sure, everyone is claiming their gadget or service enables cloud computing, but there is not a rash of ridiculous IPOs as there was back in dot-com days. Exuberance, maybe; irrational exuberance, no.
And the cloud bubble is not the only bubble that’s inflating right now. There’s a social media bubble going on. And a smart phone bubble. And a storage bubble. And a health care IT bubble. And Google is in a bubble of its own. Lots of tiny bubbles – kind of like foam.
And foam is a by-product of a rising technology tide, to belabor the marine metaphor. But isn’t that the way it should be? We are still in the age of information technology and that technology can do amazing things. In a reasonably healthy economy, there should be a focus of capital on emerging technologies. That’s normal – and bubbly.
Here’s more evidence of a cloud bubble:
CA pays $200 million for identity and access management firm Arcot to bolster its Software-as-a-Service offerings. http://go.techtarget.com/r/12372585/6423897
Here’s an interesting piece on what are good and bad cloud computing investments: http://www.investorplace.com/news-opinion/technology/cloud-computing-stocks-microsoft-msft-successfactors-sfsf-rackspace-rax-salesforce-crm-oracle-orcl.html