Cloud Technology Expected to Boost Revenue Growth Next Quarter, Forecasts Augusto Beato

With cloud traffic still peaking, Portland SEO's Augusto Beato expects Amazon and Microsoft's revenues to jump higher it the current quarter than it did for the quarter ending December 31, 2018.

With cloud technology being the catalyst for growth, Microsoft saw its revenue jump 12 percent to $32.5 billion, and operating income grow 18 percent to $10.3 billion year-on-year in the fourth quarter of 2018.

Microsoft’s market value soared above its peers during the quarter as investors bet the company’s cloud and enterprise-software business was more stable than other parts of the technology market. While Microsoft’s Azure cloud-services revenue grew 76 percent, the closely watched segment’s growth rates have slowed from the near-doubling that business posted each quarter in 2017 and early 2018.

Nonetheless, it still grew a healthy 76 percent to $9.4 billion, or a $37.6 billion run rate.

Meanwhile, AWS, Amazon's cloud computing arm, grew 46 percent to $7.4 billion, or a $29.6 billion run rate. That’s up from $5.11 billion a year ago.

Amazon currently has 60 cloud locations worldwide, with another 12 under construction. Canalys reports that the company’s CapEx reached $26 billion, up to a modest 7 percent. Meanwhile, Microsoft, which is chasing AWS, had much more aggressive infrastructure spending, with expenditures up 64 percent to $14 billion.

Various cloud databases are becoming relevant as they improve the overall efficiency of the client offerings and reduce the support and maintenance considerably, giving almost total control of operations over the data which is stored.

"The adoption of cloud is growing with increased confidence among organizations for its critical applications, helping users to concentrate on their core competencies which will result in better customer satisfaction," notes Beato, who is the CEO of Portland SEO. "The market is extremely competitive with vendors competing to gain a greater market share."

Last year Synergy Research reported the overall cloud market worldwide grew 32 percent to $250 billion. In Synergy’s last report on cloud market share in October, it had Amazon well in the lead, with around 35 percent and Microsoft around 15 percent. A Canalys report from the same period had Amazon with 32 percent and Microsoft with 17 percent.

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