Traditional corporate data centers are moving out of expensive data storage and computing and moving into much cheaper and efficient subscription based clouds. Companies that are benefitting from the new trend includes cloud based storage behemoth Google and Amazon.com, chip makers for cloud based storage Advanced Micro Devices and Applied Micro Circuit, networkers Ciena that provide fast connecting fiber-optic equipment and Splunk, and service providers such as Verizon Communications. Biggest losers will be those enterprise software companies such as SAP, Microsoft and Oracle.

Verizon Communications and Amazon Web Service are making new programming tools that make it easier to transition software from old school company data centers onto clouds. Companies such as Advance Micro Devices are also helping Verizon Cloud by providing them with processors. Verizon Cloud expected to be in operation by 2014. Network gear maker and the leader, Cisco will face problems in coming years because its gear doesn’t fit new cloud equipment. That is why Verizon Cloud using switches from the newcomer Arista Networks that run Linux. Data storage specialists such as EMC and NetApp will not be affected by cloud revelations. However, they are under constant threat from new comers such as Violin Memory and Micron Technology.