An article by Nick Razey, Co-founder and CEO of Next Generation Data, talks about the value in the IT chain that will migrate to the cloud providers leaving data centers to earn meagre commodity margins. A good data center service also needs well trained staff and embedded policies and procedures. These parameters directly affect both the quality of the product and its price. For customers, the cost of transition from one data center to another is so high that they will not move their IT overnight if a new, better and cheaper option comes along. Instead they will wait for a natural break such as a technology refresh (and/or the end of a contract) before moving. As a result there are already hundreds (maybe thousands) of cloud service providers and more are emerging every day. Ironically it may be that cloud services are the next commodity and cloud providers will see their margins competed away while data centers remain relatively unaffected by the new IT world.
To know more visit http://www.cloudcomputing-news.net/news/2014/may/07/could-we-have-data-centres-commodity/