Cloud Wars: How The Big Three Will Shape This Quarter
Feb 20, 2020 13:06
In the world of cloud technology, Amazon, Microsoft, and Google are often referred to as the large cloud infrastructure market, and if you doubt the potential for cloud growth, look at the impressive earnings figures of these three companies in this quarter, which are almost nonexistent, 21.9 billion dollars in profits over that period. Before moving on to specific numbers for each business, it is important to remember that it is difficult to get a clear idea of what cloud numbers actually mean and what each company has in this category of cloud revenue. In addition, Google didn't even report cloud revenue in this quarter, so we have to rely on the comments.
It is also important to remember that we are talking about cloud infrastructure, not S-a-a-S revenue, so Microsoft has played an additional role in S-a-a-S operations, but Google combines S-a-a-S and infrastructure into one. That means we have a rough idea and we know the market is growing. Consider that last year's income statement showed sales increased from about 3.5 billion to 21.9 billion dollars in just one year. In fact, according to the research, for the first time, the total market will be 100.5 billion dollars.
Amazon’s first-quarter report showed a 40.8% increase in Amazon sales, generating 7.5 billion dollars in revenue. AWS is the largest player in the cloud market, accounting for 12.8% of Amazon’s quarterly revenue. However, Google and Microsoft have not exactly shut down. Google sent more than 100 announcements to its Cloud Next conference; though the main objective was the launch of a new online multi-cloud Anthos platform that would compete directly with AWS and Microsoft Azure. And while Azure has only 16.6% market share compared to 31.8% for AWS, Microsoft’s cloud sales grew 75.3% in the first quarter. The announcement and new growth of Google Anthos will spur new competition, especially among the top players. Here’s how we expect the first three to stand out as the market moves in the second quarter.
Amazon has posted its claims on DevOps and will remain a necessary source for companies looking to deploy native cloud software in their smart environment. This shorter development life cycle and huge storage capacity have earned significant AWS DevOps certification training contracts to Lyft which is 310 million dollars by 2021 and Pinterest 720 million dollars by 2023. However, much of AWS DevOps certification training at the beginning of Q2 was focused on Apple, which is still AWS’s largest customer. The company spent 355 million dollars on AWS in 2018, in part to support 1.65 billion concurrent devices powered by I-Cloud. It is not a small sum of money - but it is also half the 785 million dollars Apple paid for AWS in 2017. With the late announcement in 2018 that it plans to invest 10.5 billion dollars in its own data centers over the next five years, Apple could soon begin a lot more negotiations with AWS - or become a full-fledged cloud player.
Microsoft could still be the traditional enterprise cloud program by leveraging and delivering traditional workloads to the cloud and then optimizing them. But Azure will mainly focus on the next few months to prepare a potential contract that will shape the product for years to come. Microsoft completed a rigorous certification process to meet Fed-R.A.M.P's high standard performance effects across all the U-S cloud computing. This is important because Azure is competing with AWS for a 10.5 billion dollars Joint Undertaking Defense Infrastructure contract to review the U-S Department of Defense technology infrastructure. AWS was able to overcome this ambitious conflict due to its earlier work with the C-I-A, so Azure needed to step up with the announcement of Fed-R.A.M.P. The final decision is expected in the coming time.
Anthos ethics is not surprising to fans of the community born to learn big data. Google also expects Anthos to move away from Azure and AWS, as the local cloud is a recurring model. Meanwhile, Anthos created VMware, which already has a default setting, allowing companies to leverage and customize their data center investments. It is too early to know the importance of finding a local ad on GCP DevOps for Anthos, but this decision differentiates the solutions from the remaining two players. GCP DevOps also announced at its conference, its new Stadia video game platform. While details, including pricing, games and launch dates, have not yet been announced, it is likely that Stadia will be in direct competition with Microsoft’s x-Cloud project, announced in the first quarter.
These two projects not only thrilled the players but showed complete confidence in the cloud industry and opened the door to other consoles they could turn to. In the long run, games can only be edited in the cloud. But regardless of the release model, players are inspired by the quality of the games, not the availability of the game in the cloud. It is spent a lot and it is a stake for the top three players in the cloud market. But one thing is for sure: we have entered the era of embedded cloud applications and businesses. Even giant brands like Lyft and Pinterest may not put all their eggs in one vendor's cart, but what they choose for their biggest investment will shape their development for years to come.
Importance of it…
It is no wonder why all this hassle is being driven by the tech giant, which has the largest share of the cloud computing market. Is the price worth it? Yes. According to a national cloud survey, 35.9% of businesses surveyed for public cloud consider it a top priority. Twenty-five percent of companies surveyed plan to double their public spending in the sky in 2018, while public spending on the cloud has risen 70.7% to more than 20.6%. However, more and more companies are turning to the cloud for their information needs as it offers reliable and cost-effective ways to provide many services and benefits. Whether or not the company manages this important market, it dominates the rest of the peloton and is confident in the brethren of its customers.
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