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When Amazon announced its Q1 results in April it revealed for the first time the size of its cloud business (Amazon Web Services - AWS). As it turned out, revenue ($4.6bn in FY14 and $1.5bn in Q1 – both +49%) was not far off what we had estimated. In the UK, we estimated FY14 growth was slightly lower at 35% - but still leagues ahead of most other infrastructure services suppliers. Indeed, the figures are an intimidating prospect for established players who are generally achieving single-digit growth at best with some not growing at all.
AWS and other public cloud providers besides have predominantly thrived on the back of business with start-ups and internet/retail firms. Meanwhile, the use of public cloud infrastructure services inside large enterprise organisations is still in its infancy, and although there will be more disruption for incumbent suppliers we do not believe the meteoric rise of AWS equates to the complete demise of the big outsourcing/consulting/SI players (although clearly they are losing some budget to the pure-plays). Indeed, we believe AWS et al will be very reliant on the help of these ‘old world’ players to gain deeper penetration into the very large and lucrative enterprise market.
In this research note we explore some of the key issues that will help determine the growth of emerging cloud players inside large enterprise accounts in the years to come and how this might impact the established infrastructure services players.
Read the research here: Public cloud providers: Unlocking enterprise spend.
This research is only available to InfrastructureViews subscribers. If you would like to become a subscriber, please contact Deb Seth.
Posted by Kate Hanaghan at '15:41' - Tagged: iaas infrastructure AWS PublicCloud
