Last week the tech giants released their quarterly results. Although they all achieve very different results, the bottom line is that one thing has grown: cloud services. They had grown in importance during the pandemic and companies continued to invest in dedicated infrastructure, reported channels. Overall, the cloud market reported $ 42 billion between January and March 2021.
The cloud is paying off this quarter
Since last year, the cloud has been on all fronts. Used for data analysis, machine learning, and application-to-application migration, cloud services are now an integral part of the technology landscape. If companies invested mainly in internal infrastructure a few years ago, this is a thing of the past.
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Indeed, the Covid-19 pandemic has emerged as a turning point in corporate investment. She pushed them to turn to the cloud to continue their activities remotely, but there is still a long way to go. “Although there was a huge spending on cloud infrastructure in 2020, most enterprise workloads have yet to be migrated to the cloud. Migration and spending in the cloud will continue as customer confidence increases in 2021. Large projects that have been delayed in the past year are resurfacing as new use cases will expand the addressable market. “said Blake Murray, research analyst at Canalys. By accelerating the digital transformation, these services brought in 11 billion more than in the first quarter of 2020 and 2 billion more than in the fourth quarter of the same year.
The cloud race between Amazon Web Services, Microsoft Azure and Google Cloud is increasing
Amazon Web Services (AWS), Microsoft Azure and Google Cloud compete in the cloud market. AWS has gained momentum in recent months and continues to lead the industry. AWS became the leading provider in the first quarter of 2021. Cloud services account for 32% of total spending. On the other hand, the company redoubled its efforts by announcing new locations for CloudFront in Croatia and Indonesia.
Microsoft Azure also saw a rapid 50% growth in the quarter driven by cloud consumption and long-term customer loyalty. There is still time for teleworking for a large part of the population and the use of these services continues to increase. “The cloud has proven to be a big winner in all industries over the past year, especially since the beginning of the COVID-19 pandemic and the implementation of containment measures. Companies relied on digital services and online to maintain their operations and adapt to the current situation “pointed this out to Blake Murray. For its part, Microsoft is developing more and more Azure Purview, which makes it possible to centralize the management of a large volume of data of a variable nature and to list them automatically. Therefore, the company tries to be present in all areas by presenting cloud solutions for non-profit organizations, but also for retail companies and financial service providers.
Google Cloud continues to grow as well, showing the strongest growth at 56%. Google One, which is helping to generate cross-selling and integration opportunities for the entire portfolio, has particularly contributed to the development of the service. The company recently announced the creation of a new cloud region in Israel.
As the cloud becomes more important, the numbers it generates become less and less surprising. The pandemic has had a positive impact on this market and the revenue of certain companies like Huawei is sometimes sustained by these services. It remains to be seen who will win this race.