{"id":3268,"date":"2017-02-02T21:39:14","date_gmt":"2017-02-02T21:39:14","guid":{"rendered":"https:\/\/www.rsoftsolution.com\/blog\/aws-still-owns-the-cloud.html"},"modified":"2017-02-02T21:39:14","modified_gmt":"2017-02-02T21:39:14","slug":"aws-still-owns-the-cloud","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/aws-still-owns-the-cloud.html","title":{"rendered":"AWS still owns the cloud"},"content":{"rendered":"


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When Amazon announced its earnings for its Amazon Web Services cloud division on Thursday, the results were hardly surprising. While AWS might not have the eye-popping growth percentages\u00a0of its rivals<\/a>, it still grew at a decent\u00a047 percent with earnings of $3.53 billion on an astonishing $14.2 billion run rate.<\/p>\n

You may point to the rivals and say, well, they had better quarters from a growth standpoint, but it\u2019s important to remember it\u2019s easier to grow from a small number to bigger small number, than it is to grow from a big number. In that sense, AWS could be seen\u00a0simply as a victim of its own success.<\/p>\n

Regardless, even as Microsoft, IBM, Google and Oracle and even Alibaba continue to boast big cloud growth numbers, they aren\u2019t getting much closer in terms of market share. It may seem paradoxical until you consider that, even as these companies continue gaining revenue, the market itself is growing at astounding rate right now. That means, they aren\u2019t fighting over a fixed pie \u2014 not by a long shot.<\/p>\n

While everybody throws around market predictions, and it\u2019s hard to know how accurate they are, as a point of reference, consider that IDC predicted a public cloud market value<\/a> of $95 billion for last year. They expect that market to more than double in just three years to $195 billion by 2020. If they are even close to right, all of these companies have an enormous potential market to work with.<\/p>\n

And when you consider that IDC\u2019s projected overall IT budget forecast stands at $2.7 trillion<\/a> by 2020, you can see that the cloud currently constitutes a minuscule percentage of the overall IT budget spend over the next several years.<\/p>\n

Forrester is even more optimistic on overall market size, predicting a public cloud market of $236 billion<\/a> by 2020. Whatever the number turns out to be, it\u2019s fair to say the market is growing rapidly.<\/p>\n

That\u2019s good news for these vendors as they fight over market share, but it doesn\u2019t necessarily mean that they will be able to catch AWS anytime soon. Amazon was the first to market<\/a> more than a decade ago with the notion of public cloud Infrastructure as a Service, and nobody even started to challenge them for several years after that.<\/p>\n

Today, according to data from Synergy Research<\/a> (keeping in mind it\u2019s a rapidly changing market), AWS has an enormous market share lead, one that John Dinsdale, chief analyst at Synergy Research says, is so big now, it\u2019s going to be very difficult for anyone, even Microsoft to catch them.<\/p>\n

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\u201cJust from a pure math perspective, AWS is so far ahead of the rest that no-one can seriously challenge its leadership in the short term,\u201d Dinsdale told TechCrunch. Yet even beyond the market share lead in itself, AWS isn\u2019t just sitting still resting on its considerable market share lead. It\u2019s continuing to innovate at a rapid rate.<\/p>\n

\u201cAWS continues to make huge investments in infrastructure, continues to expand its range of services, continues to execute well, is growing its business with enterprises, and has the full long-term backing of Amazon for whom AWS is very important. The combination of math and business logic says that AWS cannot be matched from a scale and market share perspective any time soon,\u201d Dinsdale said.<\/p>\n

So continue to expect eye-popping numbers from all the public cloud vendors, but just don\u2019t interpret that to mean it\u2019s coming at the expense of AWS. For the most part, AWS continues to grow its market share and add new functionality and services at such a rapid rate, that even companies as well heeled and well positioned as Microsoft and Google, will be hard-pressed to make a significant dent in that market share lead for some time to come.<\/p>\n

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Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/J9zeq01BYlQ\/<\/p>","protected":false},"excerpt":{"rendered":"

When Amazon announced its earnings for its Amazon Web Services cloud division on Thursday, the results were hardly surprising. While AWS might not have the eye-popping growth percentages\u00a0of its rivals, <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19],"tags":[25],"class_list":["post-3268","post","type-post","status-publish","format-standard","hentry","category-enterprise-software","tag-enterprise"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t