Which are the biggest cloud computing companies in the world right now? Cloud has been the buzz word all through the 2020 pandemic. The rising popularity of the technology has actually urged IBM (NYSE:IBM) to split its business to have a split off company to focus exclusively on cloud. This decision wasn’t prompted overnight, but the outcome of the gradual slump of its software segment, coupled with the significant growth of the cloud segment. The company plans to launch a separate company for information technology infrastructure services with a new name by the end of 2021. This comes as a landmark decision in the 109 year old IBM legacy.
So what has prompted IBM to make such an iconic decision? It is obvious that cloud computing is the next big thing in data storage technology. According to IBM executive chairman Ginni Rometty, the decision comes in wake of preparing and positioning the company for a “new era of hybrid cloud”
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As corporates were forced to get into remote working mode overnight, the pressure was on the businesses to restructure their IT infrastructure to support the working environment that the world wasn’t prepared enough for, but has been forced to go through for months on end now. Survival of firms, of all shapes and sizes, was based on how fast they could adapt and transition into “cloud” if they had been putting off this forever. It is however, the cloud technology that has helped millions of corporates to survive this crisis, to help continue Business As Usual. Employees have been heavily dependent on collaborating on cloud platforms during the work from home phase.
However, even without any indication of the pandemic, cloud computing has been touted as the next stage technology for quite some time now. It has been the trending technology that corporate houses are eager to ride to streamline their data practices. The market has been growing and is expected to reach $832.1 billion in 2025, at a CAGR of 17.5% when the pandemic had not been in picture. With the growing market, companies in the segment have been gaining momentum and reaping the benefits. In the technology business, cloud computing might just be the most lucrative segment currently.
It is expected that even when the pandemic is past, the cloud computing market will continue to grow with the boost that it has received during this period. The market has grown 35% already. Zoom Communications (NASDAQ:ZM) has seen a 88% year-over-year increase in revenue in its very first year as a public company. The digital communication trend is not expected to die down anytime soon. Cloud companies might be frontrunners in the global recovery. The market is bound to grow well into 2021, as digital communication and cloud data centers will remain the preferred way the world stays connected. This makes it the perfect time to invest in some of the Top 10 Cloud Computing Stocks To Buy that we have recommended.
The cloud computing services span from Infrastructure as a Service (IaaS) , Platform as a Service (PaaS) to Software as a Service (SaaS). And even within each of these service categories, cloud solutions can be private, public or hybrid. This makes this a wide market, where companies might focus their energies on specific areas within the cloud umbrella.
The leaders in the technology market – Amazon, Microsoft and Oracle, are delving into the cloud market with their segments focused on cloud technology. However, newer players like HashiCorp, a company set up in 2012, are adding interesting dynamics to the multi-billion dollar market, as one of the open source companies providing free cloud tools to individual developers and start-ups. The company has launched several cloud tools that are gaining traction, which has proved to be a rewarding commercial model for the company. The market is therefore an interesting mix of giants and upcoming innovative enterprises that are both dynamic and promising. There is an intensified competition with the player vying for the market share. However, who’s exactly leading as the biggest cloud computing companies in the world? Most of us might not be aware of the biggest players, apart from the few top giants. In our list, we try to uncover the biggest companies in the cloud market by ranking them through revenue values of their respective cloud segments in the previous year. Are you ready to find out?
American file hosting service provider, Dropbox, offers a smart workspace integrating file sharing services with other collaborative tools to enable teams to have more enhanced sharing. The company has a business model wherein free storage is offered to customers with extra storage and additional features being provided as a paid service. The company had close to 15 million paid users in 2019.
ServiceNow is a Platform-as-a-Service (PaaS) cloud service provider, that supports companies in automating workflows. The company provides technical management support and has recently launched “Orlando” a version of cloud software with artificial intelligence technology.
Workday is a Cloud computing company operating in Financial Management and Human Resource Management. Some of its customers, using its on-demand Human Resource Management solutions are Walmart Inc, and UK’s BP. With Workday Talent Marketplace plans to create workforce mobility through a Talent Marketplace.
12. Alibaba Cloud
Cloud Revenue – $3,681 million
The cloud computing subsidiary of Alibaba Group, is a Chinese player in the cloud market space. The company provides cloud computing solutions to e-commerce industries as well as online businesses. It is the largest cloud computing platform in China currently.
Oracle provides servers, storage, network, applications and other services through a global network of Oracle Corporation managed data centers, in its Oracle Cloud wing. The company plans to integrate Zoom video into its marketing, sales, and customer service apps soon. The company reports its Cloud revenue under its business division Cloud services and license support, which had a revenue of $26.7 billion and also under the Cloud license and on-premise license division which was at $5,127 million.
The German MNC provides cloud services in several segments. The company has been in partnership with the likes of IBM and Hewlett Packard Enterprise (NYSE:HPE), to provide hybrid cloud services on its platform.
Under its digital media segment, the software pioneer’s Adobe Creative Cloud, is a subscription based platform that allows users to access Adobe’s creative products integrated with cloud-delivered services. These are delivered across desktop and mobile devices. Creative cloud is targeted towards creatives such as artists, designers and developers.
Google Cloud Platform and G Suite form Google’s cloud segment providing data migration and modern development environment features, on its robust infrastructure. The revenue in this segment grew 5.5% in 2019. G-suite includes apps like Gmail, Docs, Drive, Calendar, and others which enables real-time collaboration.
IBM’s Cloud platforms include Red Hat platform, which enables the operation of clients’ hybrid multi-cloud environments. It also includes IoT, Blockchain and AI/Watson platforms. The cloud revenue for the company has jumped 30% in the recent past, and this lays down the path to the future split off of its operation to focus on cloud.
Cloud service provider VMWare, integrates its desktop software to run on Microsoft Windows, Linux, and macOS. The company plans to launch a series of new solutions for its multi-cloud portfolio, under the flagship VMWorld 2020.
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