Kind of telling how the chart has Oracle, Adobe and Intel as "peers" but AWS is nowhere to be seen. I didn't even know Intel or Adobe had cloud offerings.
The chart shows the entire market value of select other tech Giants, not their cloud offerings.
The purpose of the graphic was to say "Google Cloud is now worth more than all of Oracle", not to show Google's place in the cloud market relative to Amazon and Microsoft.
Adobe's market cap has gone from a stagnant $20-$30x billion, to being as valuable as SAP, in five years, solely due to their booming cloud subscription business. Previously the stock hadn't net climbed higher basically between the dotcom bubble in 2000 and 2013.
Sales were hardly moving for years and have soared since fiscal 2015, from $4.7b to $10.6b (last four quarters). In that time operating income more than tripled from $900m to $3b.
And for Adobe, cloud is way more than just Creative Cloud and the subscriptions for Photoshop or whatever.
When Adobe bought Omniture, that was I would argue, one of the best acquisitions since DoubleClick, and Adobe has taken that and built out this very high-margin, very lucrative “marketing cloud” business for agencies and small businesses and large enterprises.
It’s genuinely impressive and brilliant to see how Adobe has turned its business around.
And as an end-user, I may dislike that it’s harder to pirate Photoshop (and if we’re legit honest, that’s what 95% of the complaints about Creative Cloud’s pricing comes down to), but if you’re a creative professional who relies on those tools, $600 a year is a worthwhile investment, especially since the updates have been higher quality and more frequent. My employer pays my sub but I’d pay it myself if I had to — just because it makes my life easier — and I’m not even a designer or video editor by trade (I do edit a lot of video, however).
AWS are just developer tools and hosting, right? Google Cloud includes both GCP and gsuite, so it is more like Microsoft office 365 combined with Microsoft Azure.
AWS are trying to get into that game. They now have hosted email, documents, file sharing, customer support, and corporate voip products. No doubt more are lined up.
For now. The next logical extension of AWS, as they saturate the tools / hosting aspect, is to begin eating the ecosystem of software businesses that depend on them. They'll tread carefully and will do it non-the-less.
It's the same thing every platform or large service ends up attempting. From Reddit to Twitter to Google to Microsoft & Windows and so on.
Amazon understands that well, they're aggressively doing it in retail. It's guaranteed they will do it with AWS. As its growth rate slows, they'll accelerate that cannibalize-your-customers (CaaS, or CYCaaS) as the next growth opportunity.
Generic CRM, targeting Salesforce and Oracle. Etc. Amazon will view these types of offerings as just another block of software service on top of their AWS structure. The playbook is that Oracle's margin is their opportunity and it doesn't stop at databases.
