Cloud Wars – Tech giants attack Amazon

Published on: September 6, 2018 / Update from: September 6, 2018 - Author: Konrad Wolfenstein

+++ Cloud Wars – Tech giants attack Amazon +++ Microsoft earns well from the cloud +++ Who owns the clouds +++ Small and medium-sized companies are increasingly using cloud services +++ Every fifth company looks into the cloud +++ So many companies pay for the cloud +++ Cash Cow Cloud +++

Cloud Wars – Tech giants attack Amazon

Thanks to booming cloud business, Amazon is now making hefty profits. Of course, this hasn't gone unnoticed by the competition. As an evaluation by CB Insights shows, both Microsoft and Google are working to better position themselves for the cloud. The two tech giants have each purchased 24 cloud-related companies since 2013. On Amazon, however, there are only twelve. The next chapter shows that this is capital well invested: Microsoft earns well from the cloud.

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Microsoft makes good money from the cloud

current business figures, Microsoft is brilliant. For the fourth quarter of 2018, the company recorded around $ 30.1 billion sales and $ 10.4 billion operational profit. The cloud business is decisive for the good figures, which is responsible for almost 38 percent of the operational profit. The most important sales driver of the segment is the Cloud platform Azure with growth of 89 percent.
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Who owns the clouds

The centralization of the digital world is in full swing. Providers of so-called cloud services enable companies to outsource their IT infrastructure or flexibly rent computing power and storage space. The end consumer also benefits from this development despite data protection concerns: Anyone who uses Microsoft as their operating system, for example, can rent the necessary software instead of buying it and store their files on an external server.

As our infographic with data from the Synergy Research Group shows, like in other areas of the digital economy, there are well-known figures here; Above all, Amazon, Microsoft, IBM and Google, but also Amazon's Chinese counterpart, Alibaba, are among the five largest providers, which together have a market share of 64 percent.

You can find more infographics at Statista

Small and medium-sized companies are increasingly using cloud services

The use of so-called cloud services in German companies is constantly increasing; small and medium-sized companies in particular have discovered the process for themselves. Cloud computing is characterized by the fact that programs no longer run directly on company computers, but are accessed via the Internet. Data can also be stored externally instead of on your own servers. According to a survey by Bitkom Research, almost a third of companies in Germany used services from the public cloud in 2016.

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Every fifth company looks into the cloud

Amazon made a record profit in the second quarter of 2018. The company's booming cloud business is largely responsible for this. Between April and June, Amazon's Cloud Service (AWS) generated an operating profit of $1,642 million - more than half of its operating profit. And this despite the fact that the division only contributes twelve percent to Amazon's total sales.

You can find more infographics at Statista

So many companies are paying for the cloud

the Federal Statistical Office, 17 percent of companies in Germany use paid cloud services. The use of cloud computing increases with company size. 38 percent of all large companies (250 or more employees) use cloud services. Storing data (63 percent), sending and receiving emails (49 percent) and operating company databases (33 percent) are particularly common.

You can find more infographics at Statista

Cash Cow Cloud

Amazon made a record profit in the second quarter of 2018. The company's booming cloud business is largely responsible for this. Between April and June, Amazon's Cloud Service (AWS) generated an operating profit of $1,642 million - more than half of its operating profit. And this despite the fact that the division only contributes twelve percent to Amazon's total sales.

You can find more infographics at Statista