AI-generated summary
The Cloud Computing market is vast and rapidly growing, with Amazon Web Services (AWS) playing a pivotal role in its expansion. Amazon, currently the world’s third-largest company by market capitalization at around 900 billion euros, derives a significant portion of its value from AWS rather than its traditional e-commerce or media businesses. If AWS were a standalone company, it would rank among the top 10 globally, valued at approximately 500 billion euros—surpassing the combined market caps of IBM, Oracle, and SAP, and comparable to Facebook.
In 2019, Amazon Web Services, Microsoft Azure, and Google Cloud Platform dominated the infrastructure-as-a-service (IaaS) sector, while emerging technologies like Artificial Intelligence and Machine Learning introduced new competitors. The market is shifting towards a multicloud approach, exemplified by IBM’s acquisition of Red Hat and the growing adoption of open-source software. According to International Data Corporation (IDC), global spending on public cloud infrastructure and services is projected to more than double from about 200 billion euros in 2019 to nearly 500 billion euros by 2023, reflecting a compound annual growth rate of 22.3%. Additionally, companies like Facebook, operating massive data centers and championing initiatives such as the Open Compute Project, are driving innovation in cloud hardware, potentially revolutionizing the broader cloud computing landscape.
The size of the Cloud Computing market is huge and continues to grow, demonstrating the expandability of this technology.
The size of the Cloud Computing market is huge. Let’s look at some figures from the market leader: Amazon is currently the third largest company in the world by market capitalization, around 900 billion euros, slightly below Apple and Microsoft. What some people may find surprising is that a large portion of that value comes not from their e-commerce, media, or device businesses, but from Amazon Web Services (AWS).
If it were an independent business, AWS would be one of the 10 largest companies in the world by market capitalization.
Cowen analyst , John Blackledge , estimates the value of AWS at 500 billion euros. That’s more than the current valuations of IBM, Oracle, and SAP combined, and pretty much the same as the value of Facebook.
The major cloud providers in 2019 have maintained their positions, but the themes, strategies, and approaches of the market are constantly changing.
Amazon Web Services, Microsoft Azure and Google Cloud Platform are the three undisputed leaders of infrastructure-as-a-service (IaaS) services, but new technologies such as Artificial Intelligence and Machine Learning have opened the field to others. gamblers.
In its World Magic Quartet IaaS 2019, Gartner marks AWS, Microsoft and Google as IaaS leaders . Oracle, Alibaba Cloud and IBM present themselves as niche players.
Meanwhile, the Cloud Computing market in 2019 is decidedly turning Multicloud, with IBM’s acquisition of Red Hat and increased use of opencode.
The impact of cloud computing on the economy is impressive: Global spending on public cloud infrastructure and services will more than double during the period 2019-2023, according to the latest update to the public cloud services spending guide of International Data Corporation (IDC) . With a five-year compound annual growth rate of 22.3%, public cloud spending will grow from about €200 billion in 2019 to nearly €500 billion in 2023. To get an idea, in 2023 the figures will be higher than the general budgets of the State in Spain.
To these figures we must add the budgets of companies such as Facebook, which are not counted as Cloud Computing but which, conceptually, are Cloud Computing. Facebook has at least 15 large data centers that host a total of several million servers.
Facebook has created and promoted the Open Compute Project (OCP), which is a collaborative community focused on redesigning hardware technology to efficiently support the growing demands of computing infrastructure. The OCP can be a revolution within the Information Systems market and, more specifically, in the Cloud Computing market, as it is a movement in the hardware space that aims to produce the same type of creativity and collaboration that we see in open source software.