Rackspace CTO On Price Cuts And The Commoditization Of The Cloud — techcrunch.com

Over the last few weeks, all the major cloud providers announced large price drops for most of their services. Rackspace CTO John Engates said at the Cloud Factory conference in Banff, Canada, today, that this is yet another example of the commoditization of the cloud. It seems Rackspace doesn’t quite believe this is the way to go. “People are dropping prices,” Engates said. “They are doing things that are in some ways not always the smartest things to do if you want to grow your business in the long run.” The current price wars, he argues, are nothing more than a race to the bottom.

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