IT is all about shifting technology, but a new trend is also under way that could have a massive impact on how the tech sector operates in the coming years: consolidation.
This week, Reuters reported that Amazon, which has a strong presence in cloud computing, is exploring how it could move into the IT space, perhaps by merging with Microsoft.
The company recently said it would be bringing some of its cloud computing work to Microsoft’s Azure cloud, which is a key component of Microsoft’s cloud computing platform.
In an interview with Reuters, Amazon CEO Jeff Bezos said he expects Amazon to use Azure as its “home base” and said it was a “great fit.”
However, it’s not clear that the Amazon/Microsoft merger would necessarily change the nature of the IT sector in the near future.
As we noted earlier this week, the IT market is already shifting rapidly and this merger could result in a lot of disruption for some businesses that were already struggling.
This is because Amazon is already a major player in cloud-based computing services like its Elastic Load Balancing and Storage Services, but also in other businesses that rely on the software that powers these services, like billing and payments.
The combination of these companies could also mean that the IT services business is increasingly in competition with the broader IT industry, which can help Amazon to better compete with Google and Microsoft in these increasingly crowded markets.
The other side of this story is that it could also lead to a huge shift in the way that IT services businesses operate, as the IT giant tries to become a more integral part of the industry.
For instance, the merger could mean that Amazon could be more interested in bringing its own software to the Azure cloud platform, instead of trying to take the leading position in that space.
Or it could mean the company could take on a smaller role in the IT service industry, like in the cloud computing space.
In either case, the result would be a big shift in how the IT business operates.
This article was originally published on Polygon.