GE is building its own cloud; outsiders wonder why


General Electric is building a cloud to handle big industrial applications for itself, for big customers, and potentially even for big industrial rivals.

Many wonder why GE’s going to all that trouble. Their argument is that not even a colossus like GE [fortune-stock symbol=”GE”] can build the scale and infrastructure to rival that of huge public cloud providers— Amazon [fortune-stock symbol=”AMZN”], Google [fortune-stock symbol=”GOOG”] , Microsoft [fortune-stock symbol=”MSFT”], IBM [fortune-stock symbol=”IBM”] etc., and why a big industrial company would turn to GE for this sort of infrastructure when there are pros in the field already offering it.

This sentiment echoes statements made by Infor CEO Charles Phillips last year at an Amazon Web Services event: “Friends don’t let friends build data centers,” Phillips said, arguing that it makes no sense for a company whose business is financial software to build core infrastructure when it can so easily rent it.


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