Investing in the cloud market has paid off. There was a lot of buzz in the tech industry last week around quarterly earnings announcements and the cloud. Among the most talked about was Microsoft, which reported that its Azure compute usage more than doubled year-over-year.
And, while AWS is still king, Microsoft and other cloud service providers are encroaching on their territory as enterprises continue to embrace hybrid cloud environments.
Here’s a quick look at some of the tech giants’ recent growth that is directly attributed to the cloud:
- Microsoft’s Intelligent Cloud segment revenues grew by 7% year-over-year, while its main cloud product, Azure, grew over 100% from last year. According to Microsoft, Azure revenues jumped by over $4 billion on an annual basis to $12.1 billion.
- Amazon’s AWS reported that revenues grew by 64% in the first quarter of 2016.
- IBM’s public, private and hybrid cloud services grew 30% during the last quarter.
- SAP’s cloud subscriptions were up by 30% this quarter.
- Adobe has seen massive growth in its Creative Cloud, Document Cloud, and Marketing Cloud services.
(See Here’s How the Cloud is Helping Tech Stocks Win for more details)
This explosive growth in cloud revenue is expected to continue its rapid pace. In fact, according to a recent Gartner report, “more than $1 trillion in IT spending will be directly or indirectly affected by the shift to cloud during the next five years. This will make cloud computing one of the most disruptive forces of IT spending since the early days of the digital age. The aggregate amount of cloud shift in 2016 is estimated to reach $111 billion, increasing to $216 billion in 2020.”
Ed Anderson, research vice president at Gartner said, “Cloud-first strategies are the foundation for staying relevant in a fast-paced world.”
And, the opportunity for growth is not just for cloud service providers. There are many other companies in the cloud ecosystem – from security, management, and automation to storage and support – that all stand to benefit from increased cloud adoption.
As this growth continues, enterprises are navigating their way through the digital transformation, learning how to best leverage the cloud and take advantage of its many capabilities.
For more information on cloud growth and best practices for cloud implementation, check out these blogs: