CEO of GoGrid: IT economy to shrink (big time) over next 10 years

The CEO and founder of GoGrid, John Keagy, made an interesting assertion at Cloud World/Open Source World: over the next decade, the IT economy will shrink from $1.5 trillion to $500 billion.  I thought this was an interesting statement so I followed up with him after his talk and we sat down for a quick interview:

Some of the things John talks about:

  • GoGrid plays in the Infrastructure on demand space and has been doing so since 2002.
  • They work with partners in the layers above infrastructure and don’t have plans to venture north.
  • The IT economy shrinkage will be driven by automation and reduced capex (commodity hardware is a big component of this)
  • Right now its hardly a competitive market in the IaaS space (“its GoGrid and a bookstore”) so you can expect to see prices drop as the competition heats up.
  • If you’re not doing your test and development and QA in the cloud, your not engaging in best practices.

Pau for now…

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