Evercore Partners' Michael Price Calls The Cloud Creative Destruction
Michael Price, Evercore Partners (NYSE: EVR) senior managing director, went on CNBC's Squawk Box on Friday morning where he discussed cloud storage as a creative destruction in the tech industry.
Price said that right now roughly 10 percent of computing occurs in the cloud, and that there is a perfect storm brewing for huge sector-wide buyouts in tech.
"That's going to move from 40 and 50 percent over the next few years," said Price regarding cloud storage.
"And what that means is creative destruction across a number of vectors."
According to Price, the traditional IT vendors aren't supplying the new-age vendors, like Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOG), and Facebook (NASDAQ: FB), with componentry. Instead, those companies are just building their own data centers
The results consist of a cutdown in price and a distant mediation of the traditional vendors Price said.
"The intermediate end-state is a hybrid public/private cloud environment," said Price.
"So IBM (NYSE: IBM) buys software, they have a public cloud now, and now they'll probably work on a strategy to integrate this. And so you'll probably see something similar from Amazon as well."
Price believes that the total available market space is shrinking despite unit volume growth.
"The question is: 'What happens when you multiply the unit volume by the actual revenue received, and what happens to the net top line?'" said Price.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.