+++ Cloud Wars – Tech giants attack Amazon +++ Microsoft is making good money with the cloud +++ Who owns the clouds? +++ Small and medium-sized enterprises are increasingly using cloud services +++ One in five companies is looking to the cloud +++ This is how many companies are paying for the cloud +++ Cash Cow Cloud +++
Cloud Wars – Tech giants attack Amazon
Thanks to its booming cloud business, Amazon is now raking in substantial profits. Naturally, this hasn't escaped the attention of its competitors. As an analysis by CB Insights shows, both Microsoft and Google are working to improve their cloud positioning. Since 2013, these two tech giants have each acquired 24 cloud-related companies. Amazon, in contrast, has only made twelve acquisitions. The next chapter demonstrates that this is a sound investment: Microsoft is making good money with its cloud services.
Microsoft is making good money with the cloud.
Microsoft is concerned about the current business figures According to reports, the company performed brilliantly. For the fourth quarter of fiscal year 2018, it recorded approximately $30.1 billion in revenue and $10.4 billion in operating profit. The cloud business was the primary driver of these strong results, accounting for nearly 38 percent of operating profit. The segment's most important revenue driver was the Azure cloud platform, which saw growth of 89 percent.
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. Despite data privacy concerns, end users also benefit from this development: For example, those using Microsoft as their operating system 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, well-known giants are active here, just as in other areas of the digital economy; most notably Amazon, Microsoft, IBM and Google, but also the Chinese counterpart to Amazon, Alibaba, is among the five largest providers, which together have a market share of 64 percent.
Small and medium-sized enterprises are increasingly using cloud services.
The use of so-called cloud services in German companies is steadily increasing, with small and medium-sized enterprises (SMEs) in particular having embraced this technology. 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 the company's own servers. According to a survey by Bitkom Research, almost a third of companies in Germany used public cloud services in 2016.
One in five companies is looking to the cloud.
Amazon posted record profits in the second quarter of 2018. A major contributing factor was the company's booming cloud business. Between April and June, Amazon's Cloud Services (AWS) generated an operating profit of $1.642 billion – more than half of the total operating result. This is despite the fact that the division contributes only twelve percent to Amazon's overall revenue.
So many companies are paying for the cloud
the Federal Statistical Office, 17 percent of companies in Germany use paid cloud services. Cloud computing usage increases with company size. For example, 38 percent of all large companies (250 or more employees) use cloud services. The most common uses are data storage (63 percent), sending and receiving emails (49 percent), and operating company databases (33 percent).
Cash Cow Cloud
Amazon posted record profits in the second quarter of 2018. A major contributing factor was the company's booming cloud business. Between April and June, Amazon's Cloud Services (AWS) generated an operating profit of $1.642 billion – more than half of the total operating result. This is despite the fact that the division contributes only twelve percent to Amazon's overall revenue.
Keep in touch
