That's not the way I remember the cloud transition at all. My company adopted an internal cloud. VMWare had some great quarters. Openstack got really big for a while and everyone was trying to hire for it. All the hosting companies started cloud offerings.
What ended up happening was Amazon was better at scale and lockin than everyone else. They gave Netflix a sweet deal and used it as a massive advertisement. It ended up being a rock rolling down a hill and all the competitors except ones with very deep pockets and the ability to cross-subsidize from other businesses (MSFT and Google) got crushed.
It still blows my mind that Microsoft is the most valuable company in the planet because of the cloud and Balmers long term vision. I thought they would have gone the way of IBM.
It’s not just the software, it’s the hardware too. Too many companies got good at speeding up VM deployments but ignored theory of constraints and still had a 4-6 month hardware procurement process that gave everyone and their dog veto power.
And then you come to companies that managed to streamline both and ran out of floor space in their data center because they had to hold onto assets for 3-5 years. At one previous employer, the smallest orderable unit of compute was a 44U rack. They eventually filled the primary data center and then it took them 2 years to Tetris their way out of it.
What ended up happening was Amazon was better at scale and lockin than everyone else. They gave Netflix a sweet deal and used it as a massive advertisement. It ended up being a rock rolling down a hill and all the competitors except ones with very deep pockets and the ability to cross-subsidize from other businesses (MSFT and Google) got crushed.