Where did the Cloud model go wrong?

In our last post, we talked about the emergence of the Cloud and we feel this is where the Cloud model went wrong.

As the Cloud grew, Cloud providers figured out a way to monetize open-source technologies by starting hosting them in the cloud. The challenge with this model is that open-source technology providers are left with all the hard work to build and maintain their projects but not with much benefits.

As a result, we are seeing another paradigm shift where open source innovators are taking their offering to the cloud and offering it directly to customers as a managed offering. This shift not only balances the equation for open-source technology providers but also benefits the end-customers.

Cloud trend

Moreover, there are other benefits with this new shift like multi-cloud and getting offerings directly from the original authors. As an example, open-source inventors like Databricks or MongoDB offer a fully managed SaaS offering over multi-cloud for better flexibility, resiliency, compliance, cost-effectiveness.

It’s no surprise that there has been a sudden rise in SaaS providers from MongoDB to Redis Labs. Here is an interesting article from coss.media. As you can see there is a massive increase in #startups from 4 in 2018 to 27 in 2021 so far.

Do you folks agree? Do you think this trend is short-lived or here to stay in the longer term?

We would love to hear what you think.