Paresh David

(Reuters) – Amazon.com Inc. (NASDAQ:) is celebrating four consecutive quarters of strong cloud computing sales growth. This streak has been called impressive by analysts and eases concerns about customer shifting to multiple cloud vendors.

Warnings from industry regulators https://www.reuters.com/world/the-great-reboot/bank-regulators-tech-giants-are-now-too-big-fail-2021-08-20 of the need to cut risk as well as some high-profile cloud outages have increasingly pushed some corporate tech teams to adopt an approach called multicloud. Also, diversification may offer greater backup and price options.

But Amazon’s strong cloud performance, a large part of its forecast-beating quarterly results https://www.reuters.com/business/media-telecom/amazon-hikes-prime-membership-fees-us-2022-02-03 on Thursday, underscores robust growth for much of the cloud industry, especially for the biggest players.

The total spending for cloud infrastructure services rose 37%, to $178 billion, in 2021. That’s more than 34% growth, according to Synergy Research Group.

Amazon Web Services (AWS) is one of the top clouds. Microsoft Corp (NASDAQ: Google Cloud and Azure each increased market share in the past three months 2021 by one percentage point compared to the previous quarter, Canalys research firm stated on Thursday.

Canalys estimated that their share was 33% in AWS and 22% in Azure, respectively. Google’s shares were 9%.

Sid Nag, vice president of tech advisory firm Tech Advisors said that “multicloud doesn’t necessarily mean spreading your wealth among multiple clouds.” Gartner (NYSE:). “There is still one primary cloud that you do most of your business.”

Capital One is an example of a bank that claimed it was the first to completely abandon data centers in the United States and made an early agreement with AWS.

According to two sources familiar with the matter, while it may have used Google and Azure to meet some of its needs, AWS has allowed it to expand to be a larger user. Because of confidentiality agreements they could not be identified.

AWS claimed that customers will have headaches if they use multicloud solutions. AWS said that its reliability has been proven in a statement.

MULTICLOUD LIMITATIONS

The big tech companies have seen cloud computing as a major driver of their growth. AWS contributed 13% to Amazon’s last-year revenue and 74% to its operating income. Alphabet (NASDAQ) reported that 7.5% of its revenue came from cloud. The Intelligent Cloud unit, of which Azure is a big chunk, brought in 37% of Microsoft’s overall sales.

Amazon attributes its cloud growth to its sales team’s expansion, the addition of data centers in new areas and the clients who moved faster to the cloud during the pandemic.

Amazon’s stock surged as a result of its cloud-related results, which was one reason that Amazon’s shares rose by as much as 17% during extended trades on Thursday. The industry’s future prospects were highlighted by other cloud firms that gained from Amazon’s results. Hashicorp Inc. and Datadog (NASDAQ) Inc., which are both aiming to simplify multicloud management, were able to gain 5% and 4%, respectively.

Amazon may be benefiting from the multicloud complexity.

Wells Fargo (NYSE:) & Co last September announced it would move into the multicloud with Azure and Google.

Christopher Marsh Bourdon, the head of hybrid environments at the organization, stated that “Concentration Risk is something that’s talked about internally.” “Putting all your eggs in one basket isn’t always the best approach.”

However, he said the bank was still developing its expertise. It will require at least five to maintain significant cloud presence.

Sigal Zarmi from Hashicorp is one of its board members.

Some multicloud deals were also relatively modest.

Verint Systems According to a Verint video, Inc had agreed to use Google Cloud in a contract to acquire Google as a client. Google Cloud is not the only provider used by this business software company.

Jaime Meritt, Verint’s Chief Product Officer, stated that certain regions or industry segments have preference for particular cloud options. Verint believes that multicloud strategies are the best option for customers and Verint.