Memory chip shortage makes bare metal cloud cheaper than on prem, says Nutanix's Rajiv Ramaswami
CEO says it is driving more customers to the cloud
The quote from Nutanix's CEO indicates that the ongoing memory chip shortage has reached a critical point where it significantly alters the economic calculus for compute infrastructure decisions.
This shift highlights how supply chain constraints can directly impact IT infrastructure choices, potentially accelerating cloud adoption and reshaping market dynamics between cloud providers and on-premise solutions.
The cost advantage of bare metal cloud over on-premise solutions, driven by hardware supply issues, now makes cloud more attractive even for workloads traditionally kept in-house.
- · Bare metal cloud providers
- · Hyperscale cloud providers
- · Cloud infrastructure software companies
- · On-premise hardware vendors
- · Enterprises maintaining extensive on-premise data centers
Companies will increasingly migrate workloads to bare metal cloud environments to circumvent high on-premise hardware costs.
Increased demand for cloud services could strain cloud providers' own supply chains or lead to price adjustments as they absorb or pass on chip scarcity costs.
Long-term shifts in IT budgeting and strategy, favoring an 'everything-as-a-service' model over capital expenditure on physical infrastructure, accelerating the move away from traditional enterprise data centers.
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Read at DataCenter Dynamics