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Cloud Computing Giants Thriving on Enterprise IT Spending

[fa icon="calendar"] 09/08/18 09:08 by Editorial Team

Editorial Team

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Cloud computing is the delivery of on-demand computing functions. It involves applications that store and process data. All this happens over the web on a pay-as-you-go basis. Instead of investing in data centers or computing infrastructure, organisations opt to rent access to everything from a cloud-based service provider.

This means that they don’t have to incur upfront costs. Instead, they only pay for what they use whenever they do so. They also avoid all the complexities that come with maintaining IT infrastructure. The providers benefit from great economies of scale through the delivery of similar services to various clients.

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Security has remained a top priority when it comes to the spending with other services such as SaaS, analytics, cloud facilities and business intelligence also being given priorities. As of now, around 18% of workloads are found on the public cloud, and the value is expected to increase to 34% in the next 3 years.

 

Dive Insight

As the spending grows, it strengthens the supremacy of a small number of cloud-based vendors. For example, Microsoft is ranked at number 2 as a service provider with SaaS and Google following closely behind. Salesforce has also maintained a good reputation on the CRM market.

When clients get more from one vendor, it helps with compatibility across applications and internal systems products. Very few clients choose to work with more vendors if they are all offering the same services and products. As more business choose to use cloud vendors, it means that on-premise vendors still have a lot to adjust to catch up with the era of the cloud.

 

What Are the Top Organisations in the Sector?

Providers have continued to become popular in the recent past. For example, Amazon Web Services (AWS) is still leading in total revenues with Microsoft Azure breathing on their necks. At the same time, Google Cloud Platform is demonstrating better grip, having established itself as a major platform in cloud computing. The growth, however, is expected to ease a little bit.

Although firms remain optimistic about public cloud opportunities, there is a growing number of companies that are constantly confronting the challenges of moving workloads and re-platforming apps. Amazon’s stock market value has managed to get a very big lift by rising 1.7% to 1.73 9 .

Amazon Web Services revenue has increased by 45% to around $5.1 billion in their fourth quarter. This is due to its addition of customers like Disney, Expedia and Time Warner who named AWS as their preferred cloud provider. These players are striving to ensure they earn at least $20 billion per year in revenue and since they already have 34% of cloud infrastructure, they might even surpass their target.

Obviously, many firms are still concerned about security when it comes to cloud services. However, breaches are very rare, and the security of their information hugely depends on how secure their existing systems are. Cloud providers’ engineers ensure that they dedicate all their energy and resources in safeguarding the infrastructure thus, ensuring security.

 

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Categories: Cloud Computing

Editorial Team

Written by Editorial Team