Sunday, April 24, 2016

We have No Idea How well Microsoft’s and Google

We have no idea how well Microsoft’s and Google’s ambitions to challenge AWS are going:

Microsoft boasted that its "commercial cloud" annual rate of operating income now exceeds $ 10 billion. Some journalists, since few other good news in the latest release of Microsoft, emphasized that the statistics as a bright spot.

The problem is that this figure is the sum of clouds; It does not represent real incomes and the term "commercial cloud" is frankly nebula. (Moreover, it is the goal of the company achieved an implementation rate of revenues of $ 20 billion in 2018.) Refers to more infrastructure-as-a-service simply public Azure (IaaS) Microsoft cloud - provided that includes raw computing, storage and application of network resources and databases managed and other tools for development, testing and deployment of applications. The term "commercial cloud" is also for monthly to the Business Office 365 and Dynamics CRM subscriptions.

And there is no real way to compare Azure alone most IaaS cloud: Amazon Web Services (AWS).

Last year, Amazon began to disclose the income and expenses of the exact figures in their states AWS profit. AWS generated $ 7.88 billion in revenue for Amazon in 2015, and a few weeks ago, Amazon CEO Jeff Bezos told shareholders that AWS is "$ 10 billion in annual sales" this year. If you want to know when it will happen in Azure, so good luck, because Microsoft will not tell you now.

The same applies to IBM and Google to the cloud infrastructure.

IBM said last week in earnings generated $ 10.8 billion in "revenue cloud" over the last 12 months. But Big Blue has made more confusing by linking its annual rotation of the application of the "cloud delivered as a service" to $ 5.4 billion things. But "as a service" figure probably includes a wide variety of things - IBM's website says that the company offers "More than 100 business applications SaaS [Software-as-a-Service]."

As for Google, so the benefit of the alphabet statement released Thursday did not mention the cloud once. "We are very excited about the magnitude of the opportunity," Alphabet CFO Ruth Porat told analysts on the call of quarterly results. As usual, it did not provide figures on the size of the cloud platform of google.

If you have an idea of ​​what the market really looks like, the best option is the most recent Magic Quadrant report on the technology firm Gartner analyst IaaS market. AWS had "more than 10 times more computing IaaS clouds the ability to use accumulated 14 other vendors in this Magic Quadrant total" Gartner Lydia Leong, Doug Toombs, Bob and Gill wrote last year. in other words, AWS is likely to generate more revenue than clouds IBM, Google and Microsoft, quarter after quarter - despite marketing claims that may suggest otherwise.

But until these companies say exactly how much revenue out their clouds, really do not know for sure.

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