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Amazon’s cloud computing unit more profitable than expected

Our roundup of the latest cloud computing news

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Each month we round up some of the biggest cloud computing news stories from around the world and bring them together into one article for you. Here are the top stories from the last few weeks.


Big news for NetSuite

Over the last couple of weeks there have been some exciting announcements from NetSuite.

This week at SuiteWorld 2015, CEO Zach Nelson announced that NetSuite is entering a strategic cloud alliance with Microsoft. This new partnership will connect NetSuite’s cloud ERP platform with Microsoft Office 365, Windows and Microsoft Azure. Read more about this here.

During the event, NetSuite also announced that some big names have recently opted for their cloud business management software, including AMEX Global Travel (their biggest customer to date), HP, TGI Fridays and Billabong.

And two weeks ago, NetSuite beat analyst estimates with its first quarter results. Total revenue for the first quarter of 2015 was $164.8 million, representing a 34% increase over the same period in the prior year. To top this off, they announced their largest acquisition to date – a deal to buy cloud-based commerce marketing company Bronto Software Inc. Read more about these announcements here.


Amazon’s cloud computing unit more profitable than expected

For the first time on 23rd April, Amazon revealed the size of AWS (Amazon Web Services). It is reported that AWS’s revenue jumped almost 50% to $1.57 billion (1.04 billion pounds) in Q1, or about 7% of total revenue.

Chief Executive Jeff Bezos revealed in a statement that Amazon Web Services is a $5 billion business and its growth is accelerating.

AWS is growing at a much faster rate than the rest of Amazon and in the future, they may well be a cloud company with a retail site rather than the other way around.


Microsoft targets $20 billion in annual cloud revenue by 2018

Last week, Microsoft also revealed their cloud revenue. It can’t be directly compared to Amazon because they rolled up their cloud-related services into a single «cloud revenue» figure combining Azure, Office 365, SaaS, and Dynamics CRM results. However, Microsoft estimates that cloud revenue will bring in $6.3 billion in 2015, up 106% for the year. Other figures indicated that «customer usage of Azure compute more than doubled.»

According to Reuters, Microsoft is targeting $20 billion in annual revenue from its cloud computing businesses by the end of 2018.


Tighter security controls for Google for Work customers

Google is now providing Google Drive for Work customers with tighter security controls. The changes, which were rolled out last month, include refined data access settings that allow you to set sharing settings by department. This means you can stop one department sharing documents with people outside of your organisation, but allow another department to do so.

You can also now set up custom alerts and track events – you can ask to be notified whenever documents containing particular keywords are shared outside of the company, for example, making it easier to keep tabs on sensitive corporate files.

And when you’re sharing confidential material, you can disable downloading, printing and copying.

As more and more businesses move to the cloud, Google have realised that security ranks at the top of the list of concerns. This is why they have decided to  ‘put security front and centre in their products from the beginning.’ Read more about the changes here.


Public cloud spending will grow by 25 percent in 2015

V3 has reported that public cloud spending will grow by 25 percent in 2015 to reach a staggering $21bn. Worldwide total cloud spend for 2015 (including private cloud IT infrastructure) will reach $32bn, up 28 percent on 2014’s $26.4bn.

And by 2019, it is predicted that $32bn will be spent on public cloud services. Kuba Stolarski, research manager for server, virtualisation and workload research at IDC, said it is clear that the cloud market is still in a period of intense growth:

«The pace of adoption of cloud-based platforms will not abate for quite some time, resulting in cloud IT infrastructure expansion continuing to outpace the growth of the overall IT infrastructure market for the foreseeable future».


We provide NetSuite’s cloud software to businesses across the UK. If you would like to discuss how the cloud could benefit your business, please get in touch.

Anything to add? Leave your thoughts on this month’s stories in the comments below.

Image courtesy of ddpavumba at FreeDigitalPhotos.net

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