The Cloud is growing but it could rain on your business party

March 12, 2019 11:23 am


Cloud computing provides better data storage, security, flexibility, and increased collaboration between employees,

Cloud adoption streamlines the workflow of small businesses and large enterprises to help them make better decisions at lower costs.

Gartner forecasts that the cloud services market will grow 17.3% in 2019 ($206.2 billion) and by 2022, 90% of organizations will be using cloud services.

Many prominent providers make the right promises but often under deliver.

Who Do You Use?

Google Cloud is the market leading cloud solutions brand, based on current usage or consideration, according to the results from a survey undertaken by the Financial Times (FT), as reported by Statista.com.

However, upon examination of the unaided or unprompted cloud solutions for business that come to mind among the global FT audience, Amazon/AWS emerges as the leading brand.

“Amazon has seen a significant rise since 2016, surpassing the equivalent growth of both Microsoft and Google,” said the FT.

Courtesy of Statista.com

Concerns

73% of businesses feel positive with the cloud service they use, however concerns still exist around cybersecurity and the cloud ecosystem, reports FT.

Feelings regarding cloud solutions do vary greatly based on factors such as tenure of cloud implementation, size of the organization and the number of cloud solutions used.

“9 out of 10 businesses experience a broad range of problems within their first 6 months of implementation, and beyond 6 months, 75% experience persisting complications. These issues include the lack of internal customer expertise and the management of multiple cloud services; however, issues also vary across regions and organizational size,” said FT.

AWS perhaps the best

Amazon Web Services (AWS), the company’s cloud infrastructure business catering to other enterprises, has quickly grown from a smaller side business to a billion-dollar success and the main driver of Amazon’s profit, according to Statista.

In Q4 2018, Amazon’s cloud arm generated $7.4 billion in revenue and accounted for nearly 60% of the company’s $3.8 billion operating profit.

Courtesy of Statista.com

According to estimates from research company Canalys, AWS captured 32% of global cloud infrastructure spending in 2018, with its largest competitors Microsoft, Google, Alibaba and IBM sharing 33% of the $80 billion market.

Among Amazon’s global players are companies like Netflix, Samsung, BMW, Spotify and NASA.

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Hadi Khatib
By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.



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