How Cloud Startups Are Changing The Face Of Innovation

Grazed from TechCrunch.  Author: Pete Sonsini.

After more than a decade of hype and billions of dollars of value creation, it would be reasonable to expect investors to start losing interest in cloud-related startups. In the venture business, me-too investors reap ever-diminishing returns compared to early entrants in a new sector. And while the sweeping transformation that began with the migration of non-critical applications from the data center to the cloud has proven massive indeed, it’s certainly no longer early days.

Indeed, even the second wave of cloud opportunity — essentially reinventing the infrastructure underlying cloud applications to meet the growing demands for performance and scalability in an increasingly mobile, app-centric world — has begun to level off in terms of new opportunity. The enabling technologies that were hand-sewn by cloud pioneers like Google or Facebook are becoming more and more commercially available; one by one, obstacles are being eliminated and problems are being solved, primarily by startups...

A number of startups addressing cloud scalability challenges for massively scalable web applications have already become market leaders (Fusion-io and Palo Alto Networks) or have achieved outstanding exits by being acquired by market leaders (Nicira and XtremIO). There’s still plenty of room for innovation, especially around mobile bandwidth and real-time interaction with diverse data sets, and it’s still early in the cycle as far as value creation and exits. But the days of low-hanging fruit are well past...

Read more from the source @ http://techcrunch.com/2014/05/25/how-cloud-startups-are-changing-the-face-of-innovation/?ncid=rss