Big tech companies increase revenues from cloud market

cloud market

The big tech companies are apparently all making more money from the cloud market, according to a new report. 

Online retail giant Amazon made a total of $38 billion in the second quarter, with $4.1 billion from cloud services, known as Amazon Web Services.

AWS is thought to be the cloud market leader, but its dominance is said to be over-estimated by observers as other companies are also making big money in the market.

Alphabet, Google’s parent company, made a total of $26 billion the most recent quarter, with more than $3.1 billion coming from cloud.

Microsoft, meanwhile, reported revenue of $23.3 billions, with $7.4 billion from its cloud operation.

The data was collated by Business Insider, which says “AWS is still the dominant cloud computing provider”, with 34 per cent of the cloud market share.

BI puts Microsoft as the second-largest, with 11 per cent of cloud market share. And Alphabet is third with 5 per cent.

There are probably numerous other companies, such as IBM and Oracle, which are in the top 10 or thereabouts.

In a separate report, BI noted that Chinese company Alibaba is also doing well in the cloud market.

BI says the world’s largest largest business-to-business e-commerce company’s cloud customer base increased by 100 per cent in the past 12 months.

BI says: “The number of paying customers for Alibaba’s cloud business nearly doubled from the year prior, to surpass 1 million during the quarter, up from 557,000 in Q2 2016.

“While the e-commerce giant reported robust growth across its business segments, cloud computing was a particularly bright spot.”

One thing which may be worth noting about this market is that investors are saying that cloud services have not yet completely taken over from internal IT departments at companies.

In fact, many companies still prefer to keep their own servers on site and run all their IT from within their own buildings and infrastructures.

One of the key components of this on-site approach is virtualisation software such as VMware, a company which was projected to be vulnerable as the cloud market grew.

But it seems investors over-estimated the threat, according to a report on CNBC, which quoted analyst Karl Keirstead as saying: “We’ve spent much of the last two years worried about VMware’s on-premise core server business given its maturity and the threat from AWS / cloud adoption.”