Cloud is still tapping into market potential
Over the past few years, cloud computing has posted impressive growth rates that speak to its rising value in global commerce. However, recent reports indicate that the technology has only reached the cusp of its market potential. The cloud seems poised to continue its emergence, led by Amazon Web Services.
The ongoing growth of the cloud
The International Data Corporation recently unveiled its quarterly cloud report, in which it estimated that cloud IT infrastructure spending will increase by 21 percent year over year to $32 billion in 2015. This figure would account for about 33 percent of all tech expenses, marking a five percent increase from 2014.
The findings from the IDC report indicate that cloud growth is spread across not just the U.S., but the business world as a whole. Western Europe is projected to record the highest growth rate for cloud IT infrastructure spending at 32 percent. IDC forecasts that Latin America at 23 percent, Japan at 22 percent and the U.S. at 21 percent will also serve as key growth areas.
"The pace of adoption of cloud-based platforms will not abate for quite some time, resulting in cloud IT infrastructure expansion continuing to outpace the growth of the overall IT infrastructure market for the foreseeable future," said Kuba Stolarski, a research manager with IDC. "As the market evolves into deploying third platform solutions and developing next-gen software, organizations of all types and sizes will discover the traditional approach to IT management will increasingly fall short of the simplicity, flexibility and extensibility requirements that form the core of cloud solutions."
A clear leader in the cloud field
Amazon released its earnings report for the first quarter of 2015 and the focus was all about the cloud, according to GeekWire. AWS tallied a total revenue of $5.2 billion, up from $4.6 billion in 2014.
"Born a decade ago, AWS is a good example of how we approach ideas and risk-taking at Amazon," CEO Jeff Bezos said in a statement, according to the news outlet. "We strive to focus relentlessly on the customer, innovative rapidly and drive operational excellence."
AWS recorded $1.57 billion in revenue in the first quarter alone, and the company's cloud computing branch accumulated only 7 percent of its total sales. These figures hint toward the massive growth potential for Amazon's cloud, which is already a market leading service.