Cloud Computing Boosts Huge Growth for Big Tech Firms in the U.S.

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Microsoft Corp., Amazon.com Inc., Intel Corp., and Alphabet Corp.’s Google are all placing their chips on the business of cloud computing, and it is boosting. All four firms reported stellar quarterly profits this week, displaying the power of the transfer in corporate computing to the cloud from company-controlled data hubs. Microsoft’s Azure business almost increased 2x, with a growth of 90% as compared to the previous year. The firm does not break out income numbers for Azure, but a research firm predicts it made almost $2 Billion for Microsoft.

Cloud Computing Boosts Huge Growth for Big Tech Firms in the U.S.

“The transfer to the cloud was one that we thought Microsoft might always advantage from, and they are showcasing us that they could,” claimed senior equity analyst and vice president at Fort Pitt Capital Group, Kim Forrest, to the media in an interview. Fort Pitt Capital Group is a portfolio management company. He further highlighted that the quarter for Microsoft was a contract locking vendor Costco as an Azure user. That took place just 2 Months post the close of acquisition of grocery chain Whole Foods by Amazon, which has increased nervousness amongst e-commerce and retail firms about operating with Amazon, claimed an industry analyst, Ed Anderson, to the media in an interview. Analyst with the Motley Fool, Tim Green, claimed that Amazon might find it requirements to make alterations at Amazon Web services at some point. “At some point, spinning off AWS down the road might turn out to be essential to avoid a migration of users,” he claimed.

Amazon Web Services is still catering to far more income as compared to any of its peers. For the quarter, AWS garbed in almost $4.6 Billion, an increment of 42% as compared to the last year. AWS may have overlooked on Costco, but the firmed locked deals with Toyota Racing Development, Hulu, and most remarkably, General Electric. Google Cloud Platform landed contracts with the likes of payments processor PayPal and department shop vendor Kohl’s. Similar to Microsoft, Alphabet does not break out income for Google Cloud Platform, but a research firm predicts that the business made almost $870 Million in the quarter, up 76% as compared to the last year.

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