Capacity problems
He may be right, but then I'm reading contemporary articles about (for example) Azure stopping signups in regions and stopping demos in others due to capacity problems. It'll certainly have an effect on data centers emptying out in favor of cloud computing if companies find they cannot even receive the services they would want to buy to do so. It's worth pointing out, cloud is not magic, if the cost of servers, RAM, and storage go up for people buying equipment for their datacenters.... Amazon, Microsoft, and Google will see higher prices too, inevitably they would then raise prices on their services; all 3 do have the cash to get into a price war and run these services at a loss fairly indefinitely but I don't see any of them being willing to do so for long.
Biting the hand that feeds IT
