While the cloud market remains in a state of status quo amongst the leading names in the industry in 2019, the details of the market are more jumbled. Market research giant Gartner points out Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) have cemented the infrastructure-as-a-service market and now control it.
However, other companies are able to find their own space within the market, mostly thanks to the increased us of AI and machine learning technology.
As for the overall cloud computing market during 2019, multi-cloud is becoming the go-to choice amongst organizations. Companies that specialize in more hybrid solutions, such as IBM are enjoying growth in this sector.
In its annual cloud market rundown, Gartner says it estimates 2019 global IT spending will reach $3.76 trillion, a 3.2 percent increase.
The cemented cloud market is one of the most interesting in tech. AWS remains comfortably ahead of Azure as the leading cloud service. Microsoft’s Azure, in turn, remains significantly ahead of GCP in second place. However, Amazon, Microsoft, and Google are all thriving within their own market positions.
In fact, even smaller cloud players such as IBM are enjoying huge success. I have often argued there seems to be enough cloud business for most companies to be successful, meaning market position may not be as significant as in other markets, such as mobile platforms.
Microsoft Azure Success
Cloud was once again a big driver as Microsoft bested analyst predictions during a bumper fiscal fourth quarter. This week, CEO Satya Nadella announced year-end financials revenue of $125.8 billion, a 14% increase, and net income of $39.8 billion non-adjusted, a 137% increase. The company is currently the most valuable in the world, with a market cap of 1 trillion versus Amazon’s 980 million.
One of the most interesting takeaways from the financial results was Azure’s performance. Cloud revenue growth has fallen from 75% to 73%, and is now at 64%. However, Microsoft is not concerned and says the decrease is simply because of the large numbers in play.
General manager of investor relations Mike Spencer explained that the bigger Azure gets as an overall business, the slower the percentage ticks up.