Amazon.com, Inc. (NASDAQ:AMZN) and Google Inc. (NASDAQ:GOOGL) are closely eyeing the cloud and enterprise space where future battles are to be won according to Hummer Winblad Venture Partner’s, Ann Winblad. During an interview on Fox business, Winblad reiterated the fact that cloud adoption is growing at a tremendous pace amidst companies developing data centers to host their own data.
Amazon had a tough quarter with its profit margins substantially declining. The company is however returning to growth especially with its cloud division as more companies continue to demand cloud related services. Amazon.com, Inc. (NASDAQ:AMZN), according to Winblad is a tough company to analyze on the fact that it is quite opaque on its earnings. The company never sheds enough light on the amount of resources it allocates to its projects.
“They are a big player in the enterprise which most people don’t really see with Amazon.com, Inc. (NASDAQ:AMZN) web services as well as dominating e-commerce. They are seeing price pressure on all sectors especially the cloud with Microsoft accelerating their efforts with azure and Google Inc. (NASDAQ:GOOGL) also as a cloud vendor, “said Mrs. Winblad.
The entry of Alibaba Group Holding Ltd (NYSE:BABA) into the U.S markets is also expected to result in price pressure on business segments it competes hand in hand against Amazon, according to Winblad. Amazon resorting to being opaque with its earnings according to Winblad is hurting the way investors view the stock. Winbald believes Amazon should be more open and give out more details about its business operations.
Google remains the most productive software company in the universe according to Winblad in terms of revenue generated per employee as well as efficiency levels. Google Inc. (NASDAQ:GOOGL) is at the moment decreasing the amount of revenue it allocates to its search business even though it stands at 90%. The company is diversifying its operations away from the search, straight into the cloud and enterprises.
Google Inc. (NASDAQ:GOOGL) is also eyeing the auto industry space with its driverless technology
“They are a company that is fearless and looking at new initiatives and spending on them and making sure they actually work and actually shutting them down if they don’t. They have made several runs at enterprise computing and really competing in essence with Microsoft Corporation (NASDAQ:MSFT) in office productivity space. [..] They really want this enterprise business now,” said Mrs. Winblad.
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