Why Microsoft Has The Largest Commercial Cloud Business, Surpassing $38 Billion In Revenue Per Year
It’s hard to believe that Microsoft—which used to be an also-ran company in cloud computing until just a few years ago—has today the largest commercial cloud business in the world, surpassing $38 billion in revenue for its last fiscal year (2019) that ended June 30.
To put this in perspective, that’s about 4 times the size of Google Cloud which has an annual run rate of $8 billion, or nearly 3 times the size of Salesforce.com which generated $13.3 billion in revenue in its last fiscal year, and still tops Amazon Web Services which brought in $25.7 billion for its 2018 fiscal year that ended last December.
Microsoft’s commercial cloud business spans from cloud infrastructure to applications
“We are building Azure as the world’s computer addressing customers’ real-world operational sovereignty and regulatory needs,” said Microsoft CEO Satya Nadella in a call with financial analysts last month. “We have 54 data center regions, more than any other cloud provider, and we were the first in the Middle East and in Africa.”
To clarify, Microsoft is including in its commercial cloud business revenues from its Azure public-cloud computing service—consisting of servers, storage, databases, networking, and software (SQL Server, Windows Server, Visual Studio, System Center, GitHub…)—also referred to as the Intelligent Cloud segment, Office 365 (Office, Exchange, SharePoint, Skype for Business, and Microsoft Teams), LinkedIn, and Dynamics 365 (cloud CRM and ERP).
Atherton Research Insights
When Nadella took the helm of Microsoft, a little more than five years ago, in February 2014, the first major thing he did was to pivot the company’s strategy from the then-current “devices and services” vision laid out by its predecessor, Steve Ballmer, to a mobile-first, cloud-first approach which helped transformed the client-server company into a cloud leader—it also helped that Nadella was the head of Microsoft’s cloud business when he took on the CEO job.
“Microsoft has always been about bringing those three constituents [end users, developers, and IT professionals] together with platforms and applications, and we now do that in a mobile-first, cloud-first world, and that’s our pursuit, that’s our innovation agenda, and that’s what you’ll hear us talk a lot about,” said Nadella during his first media briefing, just five weeks after being announced as the new CEO of Microsoft.
A rich breadth of cloud services
Amongst the 5 top commercial cloud providers—Amazon, Microsoft, Alibaba, Google, and IBM—Microsoft along with Google are the only ones with a cloud offering that spans from cloud infrastructure services (IaaS) all the way to applications or software-as-a-service (SaaS).
Today, cloud computing is clearly the foundation of Microsoft’s growth strategy—as of this writing, the software giant is the most valuable company on earth surpassing $1 trillion in market capitalization—betting on the development and acquisition of open source and cloud-based technologies including Linux, Cloudyn, Cycle Computing, Bonsai, GitHub, BlueTalon, and PromoteIQ while de-emphasizing Windows’ dominance inside the technology giant headquartered in Redmond, Washington.
In conclusion, Microsoft’s turnaround under Nadella is one of the most successful enterprise digital transformations we’ve seen so far.
Artificial Intelligence (AI) In Telecommunication Market To Propel Vigorously At A CAGR Of 42.16% From 2019-2027
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Global market for Artificial Intelligence in telecommunication to propel vigorously at a CAGR of 42.16% from 2019-2027, as estimated by ReportsnReports.
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Artificial Intelligence (AI) In the Telecommunication Market report gives the past, current and forecast industry patterns and the conjecture data identification analysis report. This report deals with Revenue, Industry development, supply, demand, volume, and product specifications, etc.
The automated chatbots, personalized offers, and efficiently streamlined customer service processes can be managed to provide enhanced customer service by the telecommunication services if Artificial Intelligence gets integrated with the former. By assimilating advanced technologies like Artificial Intelligence, machine learning, etc. and 5G system, the telecommunication operators, can enhance and implement realization of high levels of self-organization, intelligent management and fault-free networks that are much more reliable as compared to the earlier networks. Advantages like detection of flaws in the network, network security, network optimization & offer virtual assistance are influencing the global market for Artificial Intelligence in telecommunication to propel vigorously at a CAGR of 42.16% from 2019-2027, as estimated by ReportsnReports. Furthermore, the incorporation of artificial intelligence technologies with upcoming wireless networks is appraised to increase the demand & adoption of such artificial intelligence tools & services in the telecommunication sector.
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Artificial Intelligence (AI) In Telecommunication Market Top Key Player Analysis:
The majority of the companies look for strategies like mergers & acquisitions, partnerships, contracts, agreements & new product launches to their respective growth. Some of these established companies operating in the global market are Infosys Limited, Baidu Inc., Sentient Technologies LLC, Microsoft Corporation, Cisco Systems, Inc., Vodafone Group PLC, Hewlett Packard Enterprise (HPE), AT&T Inc., H2o.ai, Nuance Communication Inc., Salesforce.Com, Inc., International Business Machines Corporation, NVIDIA, Google, Inc. and Intel Corporation.
Artificial Intelligence (AI) In Telecommunication Market Insight Analysis:
The upsurge in mobile data traffic & smartphone users across the world and the integration of AI with newer wireless networks will necessarily drive the global AI in the telecom market. Concerns related to incompatibility, the unreliability of artificial intelligence algorithms, lack of skilled personnel & difficulties in the protection of confidential & private data are the primary challenges faced by the market players. With the proliferation of the microcomputer, advanced microprocessor and improved network connection in the 1990s and 2000s, researchers have designed new AI systems for the telecom industry that helped in increasing the operational efficiency with the expertise of telecom operators.
Artificial Intelligence (AI) In Telecommunication Market Regional Analysis:
Geographically, global AI in the telecommunication market has been segmented into North America, Europe, Asia Pacific and the Rest of the World (ROW). North America leads global AI in the telecommunication market by capturing the largest market share in terms of revenue of around XX% and revenue of approximately $xx million in 2018. The fueling of market growth in North America can be reasoned to the relevant R&D in autonomous vehicles, healthcare, cybersecurity, and security and access control technologies. Additionally, the use of AI technology at home and in classrooms is expected to expand with the efficient integration of face-to-face learning significantly, and various new startups have been investing in the adoption of AI technologies, which is expected to provide lucrative growth opportunities for AI in North America.
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Salesforce Completes $15.7bn Acquisition Of Analytics Thoroughbred Tableau Software
How good data integration and management can aid digital transformation, that is the way forward.
Salesforce (NYSE: CRM) has completed its $15.75bn acquisition of analytics vendor Tableau Software (NYSE: DATA), its biggest ever acquisition.
The deal was announced this June, and came just after Google moved to acquire data analytics company Looker for $2.6bn.
With Tableau, Salesforce says it will play a greater role in driving digital transformation, enabling companies around the world to tap into data across their entire business and “surface deeper insights to make smarter decisions, drive intelligent, connected customer experiences and accelerate innovation”.
IDC projects worldwide spending on technologies and services that will enable digital transformation will reach $1.8 trillion in 2022. Tableau offers self-service analytics with an intuitive platform that allows people of any skill level to work with data. More than 86,000 organisations, such as Charles Schwab, Verizon, Schneider Electric, Southwest and Netflix, already use Tableau to help them manage their data.
Salesforce Customer 360 provides companies with a complete, intelligent view of their customers across every touchpoint, including sales, service, marketing, commerce and other areas. And Salesforce Einstein delivers AI-powered analytics for sales and marketing.
With Tableau and Einstein working together, Salesforce says it will deliver the “most intelligent and intuitive analytics and visualisation platform for every department and every user”. Tableau will also improve the capabilities of Customer 360, said Salesforce, enabling it to reach a broader set of customers.
Tableau will operate independently under the Tableau brand. Tableau will remain headquartered in Seattle and continue to be led by CEO Adam Selipsky and the current leadership team.
“Data is the foundation of every digital transformation, and that’s why we’ve never been more committed to delivering powerful analytics to every user,” said Keith Block, co-CEO of Salesforce. “Tableau will make Salesforce Customer 360, including Salesforce’s analytics capabilities, stronger than ever, enabling our customers to accelerate innovation and make smarter decisions across every part of their business.”
Blue Door Communications Announces Acquisition of PunchxPepper Digital Marketing Agency
TORONTO, Aug. 02, 2019 (GLOBE NEWSWIRE) — Blue Door Communications (“Blue Door”) is proud to announce that it has successfully acquired Toronto-based digital marketing agency, PunchxPepper (“PxP”) effective immediately.
Headquartered in Toronto, Blue Door is a full-service public relations and digital marketing agency specializing in the hospitality sector.
As part of the acquisition, Blue Door will gain PxP’s employees including experts in digital and strategic planning. Additionally, all consumer-packaged goods and hospitality clients will be joining Blue Door’s expanding client roster which includes Assembly Chef’s Hall, Tequila Tromba, Lost Craft, Vieni Estates Honeycomb Hospitality, Virtuous Pie, PM Entertainment, Gusto 54 Restaurant Group, The Good Son, The Thompson Hotel, The Kimpton, The Annex, and Toronto’s first legal retail cannabis store, The Hunny Pot Cannabis Co.
“We have always admired the digital advertising and content creation work that Brody and his team created at PxP,” said Blue Door CEO, Laura Silver. “I have no doubt that our combined expertise in this space will add significant value to our clients and strategic partners.”
CEO of PxP, Brody Major, will join the agency as Director of Digital Marketing leading a team of digital coordinators, managers, photographers and graphic designers. Major will also spearhead its business development arm.
“Blue Door has grown exponentially year-over-year and I have always been impressed with their internal structure and ability to offer the full slate of services — media relations, crisis communications, digital ad planning, social media management and graphic design — all custom built for the hospitality industry,” said Major. “Our compatibility across multiple facets including culture and core values was also a driving force for this acquisition.”
The expanded capacity of in-house experts is timely for Blue Door as it integrates new major accounts including Longo’s Brothers Fruit Marketwhich successfully opened their 34th store earlier this week. The agency is also undergoing an extensive recruitment campaign as it expands into new verticals of technology, real estate and fashion. Blue Door has already made inroads into the healthcare sector and is currently the Agency of Record for Spectrum Health Care, a leading provider of innovative home health care services.
“Growth by acquisition is a core strategy for our agency and we are incredibly proud to welcome Brody and his team to Blue Door today” said Silver.