'Legacy' Rocks! Microsoft + Oracle + SAP +IBM = $5 Trillion Valuation

In today's Cloud Wars Minute, I look at the ongoing relevance and
success of so-called "legacy" organizations in the Cloud Wars Top
10.


Highlights


00:16 — Now interesting to see across the 10
companies in the Cloud Wars Top 10, we've got four that would
fall under the sort of goofy legacy title. They've been
around about half a century or more. And then we've got six
companies that we referred to as cloud native. Interesting to see
that right now the Cloud and AI revolution is fully underway.



00:49 — Because if you take the valuations
of those four companies, Microsoft plus Oracle plus SAP plus IBM,
it comes to a little over $5 trillion, which is almost exactly
the same as the combined valuations of the six cloud native
companies. My point is not just to play some goofy
arithmetic game, but rather to say that there is a lesson here
about the power of incumbency, right? 



01:20 — If you've been in a market for a
certain amount of time, something new comes along. You can try to
ignore the new thing and say "No, no, we'll just power through
this on our own." Or you can say, "Let me take the
capabilities I currently have as an incumbent ... and then blend
that in with his cool new stuff here." 


02:11 — I mentioned the four legacy,
so-called legacy tech vendors, Microsoft is say 52, no 50 years
old this year, $3.71 trillion market cap. Oracle is about
47-years-old this year, $667 billion, SAP is 53-years-old, $370
billion, and IBM 114-years-young, and combined those four add up
to $5.02 trillion. 

03:14 — I'm not taking away anything from
either side, but this is a remarkable example of how it's not
just the bright shiny objects that are going to determine who's
going to win or lose or start up with the cool new stuff. 


04:10 — It also shows us that the mindset
of companies is so important these days. We can't say, "Well, I
can't make it. I am caught in the old world." But instead,
"How do I take the new things that are happening, weave that into
what I h


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