While new technologies are always on the rise, one of the most recent and revolutionary services is cloud computing. Because of the ease of use, accessibility, and cost-effectiveness that this technology offers, companies are quickly moving to take advantage.
According to Business Insider, Amazon’s cloud-computing business, Amazon Web Services (AWS), is growing rapidly and is estimated to be worth as much as $160 billion on its own. This number could even grow considering that by 2018, more than 60% of enterprises will have at least half of their infrastructure on cloud-based platforms.
Overall, cloud services are becoming so popular that by 2018, more than 60% of enterprises will have at least half of their infrastructure on cloud-based platforms. According to a note from the Deutsche Bank Tuesday, Amazon has long been ready to capitalize on this industry since its launch 10 years ago.
AWS is forecast to generate about $16 billion in revenue by 2017. This finding is derived from comparing other organizations in the enterprise space’s median revenue from 2016, such as Salesforce, Workday, and Google.
According to their most recent quarter review, AWS grew an estimated 78% each year, reporting $2.1 billion in revenue. Deutsche Bank says that AWS could be the fastest-growing enterprise tech company of all time.
Even though cloud computing has opened up new doors to success, organizations that were less prepared are feeling the negative effects.
The Los Angeles Times reports that the once technology giant Hewlett-Packard Enterprise (HP), is struggling so much to keep pace with new tech, such as smartphones and cloud computing, that the company will split this weekend.
The old HP “missed the emergence of the Web,” said tech analyst Peter Burris at Forrester Research. “They missed the emergence of mobile.”
HP was founded in 1939 and has since been celebrated for their engineering know-how. However, the company’s board decided last year to create two smaller companies with narrower focuses.
One institution will mainly sell personal computers and printers, while the other will specialize in selling commercial computer systems, software, and tech services.
While some people are skeptical that these new companies will be able to reach the status of HP, analysts estimate that each spin-off has the potential to produce over $50 in sales next year. However, HP stated that they’re completely giving up on competing directly with cloud computing.