Monday, February 19, 2018

90% of Internet Users Now Use Cloud-Based Apps

Perhaps 3.6 billion global consumers now use cloud computing, in the form of the apps and sites they use regularly. If there are a total four billion internet users globally, that suggests 90 percent of world internet users use cloud-based  applications and services.

That has obvious implications for the computing industry.

In 2017, Amazon Web Services generated about $18 billion of revenue for Amazon. Microsoft, which includes its cloud apps in its cloud revenue segment, booked perhaps $27.4 billion in cloud revenue.

From 2016 to 2017, AWS revenues grew 42 percent from $12 billion to $17 billion, while Microsoft's cloud revenue contributions grew about nine percent.

Looking just at customers of cloud computing services (and not including applications), AWS has perhaps 34 percent installed base; Google 20 percent; IBM 15 percent; Microsoft about 15 percent.

In 2017, enterprises spent about as much on cloud infrastructure services as they did buying servers to support their internal computing operations. But a majority of computing workload probably now happen on cloud facilities.  

More significantly, cloud spending is going to displace a greater percentage of enterprise computing spending in coming years.

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