Don't Hide From The Obvious: The Cloud Is I.T.'s Data Center

While many skeptics stood around and debated whether enterprises would adopt cloud computing, 2nd Watch focused on actual migrations. The result: Business is booming -- a healthy reminder for all I.T. entrepreneurs that the cloud wave ain't over. Instead, it's getting bigger as even the most skeptical enterprises finally dive in.

2nd Watch now manages about 75,000 server instances in the cloud. The company's installed base stretches across Amazon Simple Storage Service (S3, 94%), Simple Notification Service (66%) and Relational Database Service (RDS), with three quarters of customers on Linux and the rest on Windows -- though per-instance customer spend on Windows is higher.

2nd Watch's bookings grew 600 percent in Q3 2014 vs Q3 2013, and the company raised $10 million in Series C1 funding in October 2014. 

Of course, there is a huge question that needs answering: When or how will 2nd Watch become profitable? So far, that question remains unanswered since the company is privately held and doesn't need to publicly disclose such information.

That aside, 2nd Watch's business suggests the overall enterprise move to cloud computing is accelerating. Or to paraphrase a recent Forbes article: The Cloud is I.T.'s Data Center.

And increasingly, those data centers are owned by Amazon, Microsoft Azure, Google Cloud Platform and IBM SoftLayer. For the vast majority of I.T. entrepreneurs and I.T. customers, I don't know why you'd build your own datacenter going forward.

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