This blog is originally published at Cloud Management Insider.
We have read it time and again that Cloud is fastest growing industr. So, can assume that Cloud industry. Moreover, it predicted that Cloud rise exponentially the pandemic. revenue increasing. A recent SiliconAngle showcasebrilliantly. Let’s put some major factors
The numbers research and consultancy firms are mesmerizing for Cloud Providerspresum there is no better option than adopting Cloud solutions. However, data from survey shows that the V-shaped recovery in the stock market looks much more like a square root sign for information technology spending in 2020. It will also hurt the Cloud, albeit way less than many other industries.
Cloud Spending Is Growing, But There’s Friction.
ETR measures the spending momentum with Net Score. shows the Net Score for the Three Giants of Cloud industry – Microsoft Azure, Amazon Web Services, and Google Cloud Platform.
Each quarterETR asks buyers about their spending on a Cloud platform and calculates Net Score subtractthe amount that decreases from the previous quarter to the amount that increases against the last quarter. There are some more complications, but that’s the gist.
As you can noticethe deceleration in all three platforms. It is essential to point out that these are already rising, but there is evident friction on spending.
Relative Cloud Spending: Still Going Strong
Here is a chart that plots the Net Score or spending momentum on the vertical axis against Market Share on the horizontal axis. Market Share is a measure of pervasiveness in the survey and calculates the sector’s penetration as a percentage of the overall survey.
It clearly shows that Cloud is on another to the other industries. Moreover,also shows the penetration of Cloud in the dataset. It proves that Cloud has bothspending momentum and high penetration to the other spending priorities.
The Spending Friction Created In Cloud Industry By pandemic
The chart shows Infrastructure-as-a-Service (IaaS) sectors that keep the Net Scores higher relative to the last survey. There are only five areas that show positive increase
s in Net Score.
Reading the bars left to right:
- The last survey, VMware Cloud on AWS, showed an impressive Net Score of 66% up from 700 basis points.
- Next is Red Hat OpenShift, with a 44% Net Score, up 600 basis points.
- Then VMware Cloud, which consists of Cloud Foundation and other hybrid and multi-cloud services, shows a Net Score of 42%, up 400 basis points.
- After that is Red Hat OpenStack – yes, OpenStack – with a 40% Net Score, up 1200 basis points since the last survey.
- Then finally, we have Oracle on the chart. There’s some software as a service in there, and Oracle’s Net Score is an uninspiring 12% – but it’s up from the last survey.
These are the only five areas where Net Score the last survey, which clearly shows the impact of COVID that we discussed earlier.
Which Cloud services are robust?
The image below shows the top ten cloud services measured by Net Score or spending momentum.
All these are solid Net Score – Azure functions, and Azure platform takes charge in Net Score. However, the surprise element is VMware Cloud on AWS. This service is popping up in all the recent surveys and growing firmly and steadily. This service is doing great and gaining presence and momentum in the data set. It is closely followed by AWS ambda; it’s a serverless service that remains strong as Google functions.
Next in line, you will find AWS – the complete AWS Cloud platform. It’s off a bit in terms of Net Score from the previous quarter, but this is a $40 billion annual business, which the Net Score . Remember that Net Score can’t grow religiously. They fluctuate and larger the base the hard it is to maintain high Net Scores, so AWS performance is impressive.
Google Cloud Platform is running closely with AWS. GCP is approximately one-eighth of the size of AWS, yet maintaining a notably higher Net Score in each survey. Google continues to struggle with selling enterprise.
Source: Silicon Angle