A report written by strategic market intelligence provider
Synergy Research Group has indicated that revenue growth in cloud computing is being driven by industry giants Microsoft and IBM. The two corporations were formerly vanguards of traditional models where users paid for and owned the software they used. The disruptive "pay-for-use" model promoted by the cloud saw both organizations radically alter their business philosophies just to survive in the new environment. Now, it seems, they are prospering.
Synergy Research Group's research suggests that Microsoft’s cloud-related income saw a 164% increase in the second quarter 2014 with the corporation earning $370 million. Likewise, IBM earned $259 million during the period. These amounts are still in the shadow of Amazon, which had cloud earnings of $962 million during the period. But although Amazon's figures are impressive, they need to be considered against the backdrop of the entire market's growth - Amazon grew 49% while the cloud market per se grew 45%. Other players also experienced significant growth - Salesforce saw a 38% increase while Google experienced a 47% increase.
Synergy Research Group's research also seems to parallel findings offered by technology research firm Gartner. Gartner publishes a "Magic Quadrant" which positions technology players based on revenues. While neither IBM or Microsoft are regarded as 'Leaders', their respective positions have improved markedly. In 2013 IBM was regarded as a marginal operator. Its purchase of SoftLayer saw the giant strengthen its position in the cloud market considerably. Likewise Microsoft's position has changed within the quadrant.
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