The slowdown in IT service market doesn't seem to have hit major public Cloud providers' plans on capital investments. Since a good presence in the cloud arena requires more data-centres around the world, with significant importance to geographical locations, public cloud servers need a strong and consistent investment over a good period of time. The major stake holders in this space being Amazon Web Services (AWS), Microsoft and Google, we can imagine how big the cloud market is going to be in the very near future.
According to WSJ, the recent financial reports of Salesforce, Workday and Box have indicated towards stronger demands for cloud despite an overall economic slowdown. Despite this slight bottleneck, there has been a steady influx of businesses from traditional IT to Cloud, further proven by the fact that conventional IT providers like HP, IBM and Oracle have been lately suffering from a declining growth pattern.
The IT business experts are anticipating around 17 percent growth in the public cloud arcade. This must explain why AWS, Microsoft and Google investments (combined) have already touched $26 billion mark. Knowing that these IT biggies are anything but naive in their field, such a significant investment would not be planned on mere whim.
Calculated risks are crucial in IT industry, and this one seems worth taking. AWS with 6.2 percent, Google at 5.6 percent and Microsoft with a massive 10 percent have hit records in their recent stock gains. According to projections made by Bloomberg, Microsoft has beaten revenue estimates by a difference of almost $17 million.
No wonder, the aggressive rate with which the major cloud providers are setting up data centers across the globe soon conventional data services would be a thing of past. Cloud is indeed the future, both for the service seekers and the providers, very much what the current picture of capital venture on cloud suggests.