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Monday, May 29, 2017

How AWS And Azure Competing Is Improving Public Cloud Adoption

Spending on the public cloud should grow rapidly, reaching 16% growth over the previous year in 2017.
    The AWS Cowen segment model expects revenue and EBITDA to increase by 25% and 26.8% per year by 2017-2022.
    Microsoft Azure is considered the platform that customers would buy or likely to renew in the future (28% of the total compared to AWS at 22%, 15% and IBM GCP at 10%).




These and many other fascinating ideas come from the Cowen Study published this week, Public Cloud V: AWS and Azure Still at the top (58 pages, PDF, customer access required). Cowen has partnered with Altman Vilandrie & Company to complete the study. The study is based on a sample of 551 survey respondents split between small and medium-sized businesses and currently using public cloud platforms and services. For the purposes of the survey, small businesses have fewer than 500 employees, medium-sized companies are 500 to 4999 employees and companies representing more than 5000 employees. The study provides information on a variety of topics, including evolving cloud costs, dynamic migration of workloads, and vendor positioning. See pages 7 and 5.6 for details on the methodology.

More SWE Azure and compete to win customers, more innovation and growth in public cloud adoption are important, as demonstrated by the following main alternatives:

Existing public cloud customers predict that spending will increase by 16% over the previous year by 2017. Current customers in the public procurement market predict that spending will increase by 18% this year. SMEs that have already adopted the public cloud predict a 17% increase in spending in 2017, and businesses, 13%. Public cloud providers are the most successful mid-market companies and are selling more this year because many rely on the cloud to expand their global operations to support growth.

AWS dominates levels of awareness with SMEs that have existing public cloud deployments with Microsoft Azure the most well-known and considered in business. In line with many other public cloud adoption surveys, IBM SoftLayer ranks better in business than any other segment, including SMEs (71% versus 58%). Google Cloud Platform has its highest levels of awareness in SMEs, due to the adoption of its many cloud-based applications in this segment of the market. They draw AWS, Azure and SoftLayer into the enterprise, however. In all existing companies adopt public cloud, most are more aware of AWS and Microsoft Azure. The second chart provides an overview of the knowledge base of the respondents.

The Microsoft public cloud more used and more likely to be bought or renovated by 28% of all respondents. While AWS public cloud is the most reviewed for all respondents, Microsoft Azure is the most widely used. When asked what a public cloud provider is likely to buy or renew, most respondents said that Microsoft Azure (28%), followed by AWS (22%), Google Cloud Platform (15%) and IBM SoftLayer (10%). The following chart compares levels of awareness, opinion, and use of the public cloud platform.

Only 37% of current users expect Azure to add or replace their public cloud provider, compared to 53% of current users and 50% of AWS GCP users. The study found that about 40% of respondents expected to add or replace their cloud provider over the next two years, up from 43% they predicted last year. Companies that have adopted Microsoft Azure are the least likely to replace / add other vendors, since only 37% of Azure's current users expect to add or replace, compared to 53% of current AWS users and 50% The GCP users.

    AWS and blue dominate the seven facets of the user experience in the survey. AWS has the best user interface, API complexity and reporting and billing. Microsoft Azure runs the entire public cloud provider around the world in the areas of management and tracking, software and data integration, technical support and training, and Google Cloud Platform is the third of seven user experience facts.
18% of workloads are compatible with the public cloud today with SMEs and leading companies slightly (16%). In general, 38% of all workloads are compatible with the infrastructure and platforms on the site, increasing to 43% for enterprises. The following graph shows the percentage workload supported by each type of infrastructure.

77% of existing public cloud adopters are likely or likely to add a SaaS workload over the next two years, led by medium-sized enterprises (81%). SMEs (76%) and companies (73%) are also likely to add SaaS workloads in the next two years. Most of these new SaaS workloads will be in the fields of testing and development, web hosting, email and communications.

The AWS Cowen segment model expects that revenues and EBITDA will have an annual growth rate of five years (CAGR) of 25% and 26.8% from 2017 to 2022. AWS net profit is expected to be 2, 7 billion in 2017 to 8.2 billion in 2022, reaching a CAGR 24.5% expected from 2017 to 2022. Revenues increased from 16.8 billion in 2017 to 51, 5 billion in 2022, Resulting in an increase of 25% CAGR during the forecast period.

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