The best cloud suppliers for 2019 have maintained their positions, but the themes, strategies and approaches to the market are in flux. The infrastructure-as-a-service wars have largely been determined, with the spoilers going to Amazon Web Services, Microsoft Azure and Google Cloud Platform, but new technologies such as artificial intelligence and machine learning have opened the field to other players.
However, the cloud computing market in 2019 will have a specific multi-cloud spin, as the hybrid shift of players such as IBM, which acquires Red Hat, can change the landscape. This year's edition of the best cloud computing providers also has software-as-a-service giants who are increasingly expanding their business operations through expansion.
One thing to note about the cloud in 2019 is that the market is not zero sum. Cloud computing runs IT expenses overall. For example, Gartner foresees that 2019 global IT spending will increase 3.2 percent to $ 3.76 trillion with as-a-service models burning everything from data center spending to enterprise software.
In fact, it is quite possible that a large company will consume cloud computing services from all vendors in this guide. The real cloud innovation can be from customers who mix and match the following public cloud providers in unique ways.
Key 2019 themes to see among the best cloud suppliers include:
- Affordability. Google has recently upgraded the G Suite, and the Skypass is a technology where the add-ons exist for most new technologies. While computing and storage services are often a bottom-up, machine learning tools, artificial intelligence, and serverless features can facilitate. It's a good reason why cost management is such a big issue for cloud computing customers – it's by far the biggest challenge. Look for cost management and concerns about lock-in to be major themes.
- Multi-cloud. A recent Kentik survey highlights how public cloud customers are increasingly using more than one vendor. AWS and Microsoft Azure are most often linked. Google Cloud Platform is also in the mix. And of course, these public sliding drift services are often linked to existing data centers and private cloud values. Put it up, and it's a healthy hybrid and private cloud race going on, and it's reorganizing the ordering order. The multi-cloud approach is activated by virtual machines and containers.
- Artificial intelligence, the Internet of things and analyzes are the upswing technologies for cloud suppliers. Microsoft Azure, Amazon Web Services and Google Cloud Platform all have similar strategies for landing customers with computing, cloud storage, serverless features, and then invigorating you to AI that will separate them. Companies that IBM wants to manage AI and cloud services across multiple clouds.
- Cloud computing landscape matures rapidly, yet provides financial transparency. It tells when Gartner's Magic Quadrant for cloud infrastructure goes to 6 players from more than a dozen. In addition, transparency has become worse among cloud computing providers. For example, Oracle used to break out infrastructure, platform and software as-a-service in its financial reports. Today, Oracle's cloud industry is lumped together. Microsoft has a "commercial cloud" that is very successful but also difficult to analyze. IBM has revenues from cloud revenue and as-a-service. Google does not break out of cloud revenues at all. Apart from AWS, it has become more difficult to analyze push sales.
In this context, we take a different approach to our cloud-buying guide and break the players into the four major infrastructure providers, hybrid players and the SaaS audience. This categorization has pushed IBM from being a major infrastructure-as-a-service player to a tweener spanning infrastructure, platform, and software. IBM is more private cloud and hybrid with IBM Cloud hooks as well as other cloud environments. Oracle Cloud is primarily a software and database-as-a-service provider. Salesforce has become much more than CRM.
- 2018 Annual income : $ 25.65 billion
- Annual revenue rate based on last quarter : $ 29.72 billion
AWS sees 2019 as an investment year as it ramps its technology development, and add sales personnel. Amazon did not quantify the higher investment, but said it would update throughout the year.
At a conference call with analysts, Finance Director Brian Olsavsky said in 2018 that it was a brighter than expected year for investment. "AWS maintained a very strong growth and continued to deliver for customers," he said. "2018 was about investing in streamlining investments in people, stocks, infrastructure that we had put in place in 2016 and 17".
The cloud supplier is the leader in infrastructure-as-a-service and moves up the stack of everything from things to things to artificial intelligence, magnified reality and analytics. AWS is far more than an IaaS platform these days. AWS grew 45 percent in the fourth quarter – a clip that has been stable for the past year.
When it comes to developers and ecosystems, AWS is hard to peak. The company has a wide range of partners (VMware, C3 and SAP) and developers who increase the ecosystem. AWS is typically the first beachhead for business players before expanding into a multi-cloud approach.
The big question is how far AWS can expand its reach. AWS can be a threat to Oracle on databases, as well as a host of other companies. Through its VMware partnership, AWS also has a strong hybrid cloud strategy and can accommodate business needs in several ways.
AWS & # 39; strategy was evident in its re: Invent conference. The show contained a barring of services, new products and developers treats that were difficult to trace. Artificial intelligence is a key area for growth and a core sales for AWS, as it becomes a machine learning platform. According to 2. Watch, AWS customers go for these high-growth areas and see the slider supplier as a key wheel for machine learning and digital transformation work.
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2. Watch discovered that AWS 2018's fastest growing services were as follows:
- Amazon Athena with an annual growth rate of 68 percent (measured by dollars spent with other Watch] versus one year ago)
- Amazon Elastic Container Service for Kubernetes at 53 percent
- Amazon MQ at 37 percent
- AWS OpsWorks at 23 percent
- Amazon EC2 Container Service 21 percent
- 21 percent Amazon SageMaker
- AWS Certificate Manager at 20 percent
- 16% AWS Lim
- 16% Amazon GuardDuty
- Amazon Macie
Based on 2nd Watch usage, the most popular AWS services are:
- Amazon Virtual Private Cloud
- AWS Data Transfer  6]
- Amazon Simple Storage Service
- Amazon DynamoDB
19659028] Amazon Elastic Compute Cloud 
- Amazon Relay Database Service
- Amazon Route 53
] Amazon Simple Queue Service
- AWS CloudTrail
- Email Service
Also: Which serverless architecture really means and where servers go into the picture
Analytics and forecasts can be a site worth s e on for AWS. As AWS rolls out its forecasts and analytics services, it is clear that the company can become more intertwined with real business features.
AWS & # 39; range continues to expand in several directions, but perhaps the one that looks the most is the database market. AWS records several database charges and has emphasized its customer agreements. One step to launching a fully managed document database is to directly target MongoDB. Should AWS capture more business data, it will be rooted for decades as it continues to develop services and sell them to you.
- Estimated Azure Annual Revenue Rate: $ 11 Billion
Microsoft Azure is the fixed number. 2 to AWS, but it is difficult to compare the two companies directly. Microsoft's slider business – called commercial cloud – includes everything from Azure to Office 365 business subscriptions to Dynamics 365 to LinkedIn services. Nevertheless, Microsoft's strong corporate heritage, software stack and data center tools like Windows Server provide a familiar and hybrid approach that is fine.
For differentiation, Microsoft has focused strongly on AI, analytics and the Internet of Things. Microsoft's AzureStack has been another cloud-meets data center effort that has been a differentiation.
Managing Director Satya Nadella, at Microsoft's second quarter earnings conference, said that the company's shooting device hangs on verticals such as healthcare, retail, and financial services. This approach comes straight out of the company's software that sells the playbook.
From a mix of services, it always starts with, I want to say infrastructure. So this is the edge and the cloud, the infrastructure is used as a calculation. In fact, you can say that the goal of a company that goes digital is the amount of computation they use. So it's the base. On top of that, of course, this whole calculation means that it is used with data. So, data estate, one of the biggest things happening, is that people consolidate the data they have and so they can justify it. And that's where things are used to AI services. So we definitely see the path where they adopt the Azure teams.
Simply put, Microsoft sells a wide variety of ski products, but it's difficult to break out software-as-a-service versus Azure, which will compete more directly with AWS.
Macquarie estimates that Azure's revenue in Microsoft's Fiscal second quarter was $ 2.75 billion for an annual rate of around $ 11 billion. Sarah Hindlian, an analyst at Macquarie, said in a research note:
Microsoft has been able to distinguish Azure in several critical ways, such as the company being both business-friendly and aggressive in layering in unique and incremental services such as artificial intelligence, Azure Stack, Azure Sphere, and a broad focus on edge computing and more advanced and complex workloads.
In fact, Microsoft's ability to target industries has also been a win. In particular, Microsoft has won major big dealers who will not cooperate with AWS since they compete with Amazon. Microsoft also began to highlight more customer gains, including Gap, and Fruit of the Loom.
It also echoed elsewhere. Daniel Ives, an analyst at Wedbush, said that AWS is the big dog, but Microsoft has some unique benefits in the field – especially a strong organization and foundation game. Ives wrote:
While Jeff Bezos and AWS are still clearly a major force in the new shift in the coming years, we believe that Microsoft with its army of partners and dedicated sales force has a huge window of opportunity in 2019 to convert Business to the Azure / Cloud platform based on our latest discussion with partners and customers.
Simply put, Microsoft can connect Azure with its other shooting services such as Office 365 and Dynamics 365. With Azure, Microsoft has a well-rounded stack, ranging from infrastructure to platform to business applications.
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- Annual Revenue Rate: $ 4 Billion +
Google Cloud Platform has won major deals, has a new leader with Oracle veteran Thomas Kurian, and is seen as a solid counterweight to AWS and Microsoft. Azure. However, Google does not show annual revenue interest rates or provide much guidance on its cloud financing.
On Google's fourth-quarter revenue conference call, CEO Sundar Pichai cited many data points for the Google Cloud Platform (GCP). However, the analysts were frustrated by the lack of income duty. To turn off in 2018, Pichai said Google's cloud revenue was $ 1 billion in the quarter evenly distributed between G Suite and GCP.
In 2019, Pichai held back on his rhythm club, so it is unclear whether the GCP gets on AWS or Azure or just grows because the total cloud is growing. In particular, Pichai describes the following:
- The number of Google Cloud Platform (GCP) offers worth more than $ 1 million doubled.
- The number of multi-year contracts doubled. "We get big wins and I'm looking forward to doing here," Pichai said.
- G Suite has 5 million paying customers.
- There is a rise in the number of deals worth more than $ 100 million.
] CFO Ruth Porat said:
GCP remains one of the fastest growing companies in the alphabet. As Sundar said, we've doubled the number of GCP contracts over $ 1 million. We also see early rises in the number of deals that are greater than $ 100 million, and very happy with success and penetration there. At this time, no further updates are made.
Post it, and the GCP appears to be a solid No. 3 to the AWS and Azure, but how far it falls behind the two objects to be seen. Wall Street firm Jefferies predicts that GCP will gain share over time.
A move that could boost Google's cloud revenue is a move to increase G Suite prices for some users. G Suite, which competes directly with Microsoft's Office 365, is increasing prices for the first time. G Suite Basic will increase prices from $ 5 per user per month to $ 6. G Suite Business will go from $ 10 per user per month to $ 12. According to Google, G Suite Enterprise, running $ 25 per user per month, is not affected by the price increase.
Competitive price movements are in line with Office 365.
- Annual Revenue Rate : $ 3.85 billion
Alibaba is the leading cloud supplier in China and an opportunity for multinational companies to build infrastructure there.
In the December quarter, Alibaba delivered a sliding sales growth of 84 percent to $ 962 million. The company has quickly added customers and is currently in the cloud buildout phase. To know:
Put it up, and Alibaba has a strong home field advantage in China, but it also has global ambitions. Alibaba launched 678 products in the December quarter. Relationships with such as SAP will probably put it on the radar for several companies with business in China.
While the big cloud suppliers add more to their stacks of AI as differentiation, there is a market being cut out to manage multiple cloud suppliers. This amount of cloud players used to focus on hybrid architecture to build data centers with public service providers, but now the goal is to be the infrastructure management plan.
Also: What Kubernetes really is and how orchestration redefines the data center
Research from Kentik highlighted how the most common cloud combination was AWS and Azure, but it is customers who work with Google Cloud Platform , too. According to the Kentik survey, 97 per cent of the respondents reported that the companies use AWS, but 35 per cent also said they actively use Azure. Twenty-five percent use the AWS and Google Cloud Platform together.
Also: What a hybrid cloud is in the "multi-cloud era" and why you might already have a
- Annualized as-a-service round rate: $ 12.2 billion
IBM's cloud strategy and approach to AI have much in common. Big Blues plan is to enable customers to manage multiple systems, services and vendors and become a management console. IBM wants to be part of your cloud environment and help you run it. In 2018, IBM launched OpenScale for AI, which is designed to handle multiple AI tools that are likely provided by major slider vendors. IBM also launched multi-cloud tools. Think of IBM as Switzerland for cloud adoption and data services strategies.
The move of businesses to use several public cloud providers is interesting and provides the rationale for IBM's acquisition of Red Hat for $ 34 billion. IBM has its own public cloud and will deliver everything from platform-as-a-service to analytics to Watson and even quantum computing through it, but the big game is that Big Blue with Red Hat can make it a leading cloud management -player. For its part, IBM takes its core business – Watson, AI management, cloud integration – and delivers it through multiple clouds.
The Red Hat acquisition is a game farm moving by IBM. It remains to be seen how IBM and Red Hat cultures come together. On the bright side, the two companies have been hybrid cloud partners for years.
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Yes, IBM CFO James Kavanaugh on the company's fourth quarter earnings conference call repeated Red Hat's reasoning and noted Big Blue sees several deals for IBM Cloud Private and its approach to "hybrid open" cloud environments. Kavanaugh added:
Let me pause here to remind you of the value we see from the combination of IBM and Red Hat, which is about accelerating hybrid cloud adoption. The client response to the announcement has been overwhelmingly positive. They understand the power of this acquisition and the combination of IBM and Red Hat capabilities by helping them move beyond their first shootings to truly shift business applications to the cloud. They are concerned with the secure transferability of data and workloads across cloud environments, on consistency in management and security protocols across the clouds and to avoid vendor locks. They understand how the combination of IBM and Red Hat will help them solve these issues.
IBM's fourth-quarter operating interest rate was $ 12.2 billion to make it a strong cloud supplier, but not comparable to AWS and Azure today. It is quite possible that the strategies of all major cloud suppliers will eventually converge.
The new hybrid and multi-cloud landscape can be one of the most critical things you can see in the 2019 sky warfare.
Here are some key players to consider:
VMware: ] It is part of the Dell Technologies portfolio, and has had traditional folding data centers for many years. The company emerged as a virtualization provider, then adopted everything from containers to OpenStack to what occurred. Perhaps the best measure for VMware was its tight partnership with AWS. This hybrid cloud partnership is a win-win for both parties, and both companies have continued to build on their first efforts. The partnership is so interesting that VMware helps bring the AWS to the premises. Witness:
Of course, VMware has its vRealize Suite, vCloud Air, VMware HCX, Cloud Management Platform, vSphere, and network products.
Dell Technologies and HPE: Both of these vendors have multiple products to service data centers and connect to cloud providers.
HPE's plan boils down to multi-cloud, hybrid infrastructure that extends to the edge.
And then there is Cisco who, through acquisitions, has built out a large software portfolio. Cisco outlined a data center wherever vision is about plugging its application's central infrastructure (ACI) into multiple clouds. No matter how you cut the hybrid cloud game, the final state is the same: multiple vendors and private infrastructure are seamlessly connected. Cisco also has partnerships with Google Cloud. Kubernetes, Istio and Apigee serve as the glue in the Cisco-Google bet.
While the hybrid market was widely used as older retailers who cooked new ways of selling hardware, the new multicloud world has more acceptance, even among the earlier booties that wanted to beat IBM, VMware, Dell and HPE into dinosaurs.
The SaaS market also highlights how vendors and their changing strategies and acquisition plans make it harder for cloud classification. In the 2018 edition of our bullshit Oracle was lumped into AWS, Azure and GCP audiences, mainly because they were trying to play in the IaaS market.
While CTO Larry Ellison still appears to be obsessed with AWS, Oracle is essentially a software and database-as-a-service company. Perhaps Oracle's efforts to automate the cloud and cook up the next generation infrastructure pays off, but for now the company is really about software. Salesforce through the acquisition of MuleSoft has also changed its stripes a bit and added an integration spin to the cloud strategy (and even a bit of traditional software licensing). SAP has grown into a big cloud player, and the working day has opened its ecosystem.
Covering each SaaS player is out of the scope of this chart, but there are a group of vendors that can be called SaaS +. These slider service providers extend to platforms, and all these vendors have several SaaS products that can run your business.
- Annual shooting service and license support revenue: $ 26.4 billion
- Annual revenue for ERP and HCM : $ 2.6 billion
In Gartner's 2018 Magic Quadrant for IaaS, the research firm reduced the field to just cloud companies. Oracle did the cut. It would not be surprising if Oracle was reclassified in 2019 out of the infrastructure race.
Let's get real: Oracle is a SaaS provider and there's no shame in it. In fact, Oracle is damn good at the SaaS game and has everything covered from small and medium sized businesses through NetSuite to large companies that migrate software in advance to the cloud.
But the real differentiation with Oracle is the database. The company has a massive installed base, an independent database that aims to remove shallow work and the potential to put its technology on more clouds than its own. Oracle is pitching itself as a Cloud 2.0 player.
For now, Oracle is a bit obsessive about the AWS. Think about:
Andy Mendelsohn, executive vice president for database server technologies at Oracle, said it is very early in cloud migration of databases. "In the SaaS world, it's a mature market where corporate customers have accepted that they can run HR and ERP in the cloud," he said. "Database in the cloud has very little adoption."
Mendelsohn said what Oracle sees more, are customers who use services such as Cloud at Customer and a private cloud access to moving databases. Initiatives like Oracle's autonomous database may be more about a private cloud approach, he said.
Among smaller companies, databases are more widespread in the cloud because less investment is needed.
"The big battlefield will revolve around the data. It's the core business of every company out there," he said.
Cloud that Customer is part of how Oracle sees its multi-cloud strategy. Analysts have raised concerns that Oracle will run multiple cloud software and databases.
After Oracle's second quarter earnings in December, Stifel analyst John DiFucci said:
While we continue to believe that Oracle is well positioned in the SaaS market, we remain more cautious about PaaS / IaaS, both in terms of peak – line revenues and associated cap-ex implications.
Although there is little question in our minds that Oracle's installed base is extremely secure, we believe that much of the net new database workloads go to non-Oracle platforms (hyperscale solutions, NoSQL, open source etc.) .
We are cautious about Oracle's IaaS efforts and support the idea that Oracle is increasing support for other clouds.
Mendelson said that Oracle has been working on several vendor strategies through its history, so there's not much of a stretch to see more shoots coming over time.
- Annual cloud revenue rate: $ 14 billion
- Sales Cloud annual revenue rate: $ 4 billion
- Service Cloud annual revenue rate: ] $ 3, 6 billion
- Saleforce Platform and Other Annual Revenue Rate: $ 2.8 Billion
- Marketing and Trading Cloud Annual Revenue Rate: $ 2 Billion
Salesforce Started as a CRM company 20 years ago, and has expanded into everything from integration to analysis to marketing to commerce. Woven through the Salesforce clouds are add-ons such as Einstein, an AI system.
Simply put, Salesforce wants to be a digital transport platform targeting fiscal 2022 revenue goals between $ 21 billion and $ 21 billion.
Most soldiers – public, private, hybrid or otherwise – will tell you that the game is recording data under management. Salesforce also sees the promise of being the data platform for record.
Enter Salesforces customer 360. The main plan is to use Customer 360 to enable Salesforce customers to link all data to a view. The idea is not exactly original, but Salesforce's argument is that it can perform better and put the customer in the center of the data life.
Post it, and Salesforce becomes a platform kit for its customers. Salesforce CEO Keith Block said the company landed several $ 20 million or more deals and recently renewed a nine-figure win with a financial company. Marc Benioff, co-director and manager, said that Einstein AI was put into all the company's clouds.
Salesforce also collaborated well with the likes of Apple, IBM, Microsoft (in some areas), AWS and Google Cloud.
Good sales strategies for Salesforce are about selling more clouds and developing industry-specific applications like the company's Financial Services Cloud.
I have traveled around the world meeting with more than 100 CEOs and world leaders. The conversation is consistent everywhere I go. It's about digital transformation. It's about exploiting our technology. It's about our culture, and it's about our values. This C-level engagement translates into more strategic relationships than ever before.
For 2019 there is little on the radar – short of a broad economic downturn – that would track Salesforce's speed. Yes, Oracle and SAP are still strong rivals with the latter actively pitching their next-generation CRM system, but Salesforce is seen as a digital transformation engine. Microsoft is another competitor worth seeing, as it also wants to offer a single view of the customer. Dynamics 365 becomes more competitive with Salesforce. With its Marketing Cloud, Salesforce competes with Adobe. As Salesforce continues to expand, it will be competitive.
More about Salesforce:
- Annual subscription and support subscriptions: € 5 billion
- Yearly shooting rate: € 5.64 billion
SAP has a widespread cloud software business like goes from ERP and HR to expenses (Concur) as well as Ariba. The company is primary enterprise software, but customers migrate to the cloud. SAP's approach sounds with Oracle's strategy, but it's an important difference: SAP will run on multiple clouds.
CEO Bill McDermott listed SAP cloud partners on the company's fourth quarter earnings call. "SAP has strong partnerships with Microsoft, Google, Amazon, Alibaba, and others to embrace this value creation opportunity," he said. "Customers can run on-premise, in a private cloud or in the public cloud. It's their choice."
The SAP cloud lineup consists of the following:
- SAP S/4HANA Cloud
- SAP SuccessFactors
- SAP Cloud Platform, Data Hub (which are hybrid plays)
- SAP C/4 HANA
- Business network software (Ariba, Concur, and Fieldglass)
In the end, SAP is a mix of traditionally licensed software and cloud versions. CEO Bill McDermott also outlined some big growth goals. For 2019, SAP is projecting cloud subscription and support revenue between €6.7 to €7.0 billion.
Going forward, SAP is projecting cloud subscription and support revenue of €8.6 to €9.1 billion. By 2023, SAP wants to triple cloud subscription and support revenue from the 2018 tally.
More on SAP:
- Annual cloud revenue run rate: $3 billion
Workday made its name with human capital management, expanded into financials and ERP, and is adding analytics via a series of acquisitions.
Before AWS became an Oracle obsession, Workday was a primary target of Larry Ellison's rants. Those verbal barbs from Ellison became a tell that Workday was faring well.
Most of Workday's revenue derives from HCM, but the company is starting to sell financials along with it. In other words, Workday is trying to develop that multi-cloud playbook that Salesforce has going. That said, Workday also has a lot of runway for HCM. Workday hasl half of the Fortune 50 as customers and about 40 percent of the Fortune 500.
The analytics business for Workday is being developed via acquisition. Workday acquired Adaptive Insights, a business planning player, and will target analytics workloads.
While Workday fared well on its own, the company was slow to broaden its ecosystem and run on infrastructure from the public cloud giants. Workday has opened up to allow customers to run on AWS and that's a big move that could pay dividends in the future.
The company also launched the Workday Cloud Platform, which allows customers to write applications inside of Workday via a set of application programming interfaces. The Workday Cloud Platform, launched in 2017, makes its platform more flexible and open.
In 2019, you can expect Workday to explore expansion ito more industries beyond education and government. Healthcare could be an option for a broader effort.
Robynne Sisco, CFO of Workday, said at an investor conference in December:
When you think about expanding in terms of industry operational systems, there's really a lot that we could do going forward. We could do retail. We could do hospitality. As of right now, we've got a lot of things we're working on. So we're staying where we are. But industry does become very important when you talk about selling financials.
Workday is also targeting more mid-sized businesses with Workday Launch, a fixed-fee, preconfigured application package.
The competitive set for Workday is Oracle and SAP for HCM and Financials. Also watch Salesforce, which is a Workday partner and potential foe in the future. Another wild card for Workday will be Microsoft, which is integrating LinkedIn more for HR analytics.
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