Life just got a bit harder for cloud computing services company Rackspace Hosting. Google aggressively reduced prices across its range of cloud services recently, while deep-pocketed competitors like Amazon, Microsoft, and Oracle are committed to offering infrastructure as a service, or IaaS, at highly competitive rates. In addition, Cisco Systems is planning to invest heavily in offering IaaS. While much of this is
known to investors, it's sometimes easy to lose site of the fundamental
reasons why these companies are doing this and why competition is only
going to get more intense.
Why companies are investing in IaaSSimply
put, it works. The companies that have transitioned to offering their
services and applications on a software as a service, or SaaS, basis
have seen a transformational improvement in their prospects. The three
leading examples of this change are Adobe, Autodesk, and Intuit. Investing Fools already know how and why these companies are outperforming the markets.
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