As the coronavirus pandemic sweeps the globe, it’s proving to be a defining moment for cloud computing. At the same time, it could spell doom for legacy companies.
The coronavirus pandemic has forced countless companies across a wide range of industries to send their employees home to work. The unprecedented number of individuals telecommuting is already proving to be a boon to cloud-based businesses, as workers turn to Slack, Microsoft Teams, Google Docs, Office 365 and other cloud services.
At the same time, however, the seismic shift in the U.S. workforce could spell doom for legacy companies. Companies like Oracle, Dell and Hewlett Packard Enterprise could be in particular danger, as these companies rely heavily on hardware and software sales to private data centers.
Many of these companies are moving to the cloud, but as Business Insider reports, analysts believe they’re still vulnerable. According to BI, Brad Gastwirth, chief technology analyst of Wedbush told clients: “We see significant risk for traditional providers of IT hardware,” before citing HPE, Dell and NetApp as examples.
“We see this trend as generally positive for cloud vendors and their supply chain,” Gastwirth continued. “We see legacy hardware vendors as particularly poorly positioned given limited to no cloud exposure.”
One thing is certain: The coronavirus pandemic is going to result in permanent and monumental changes to the U.S. IT industry, changes that will greatly benefit cloud-based businesses.