The Cloud is Becoming the Ultimate Disruption
The cloud is taking over the world. Or the business world, at least. Or it’s at least changingthe business world in a fundamental way.
A recent article by Joe Harpaz of Forbes examines how prevalent the cloud has become over one short decade, and how major corporations who came to prominence by riding the success of locally installed software are betting big that the cloud is the way of the future. Also, the present.
By looking at areas of growth in key tech organizations like Microsoft, Oracle and Amazon, Harpaz notes the shift towards the cloud is both rapid and essential to the direction of each company.
“Oracle’s profit rose 15% during its fiscal fourth quarter,” Harpaz notes, “Thanks largely to revenue from its cloud-based software-as-a service and platform-as-a-service businesses.” Microsoft, meanwhile, saw its cloud hosting business grow by 93% in the first three months of 2017 alone.
Even Amazon, who has been making headlines with its recent acquisition of Whole Foods, has been focused on growing its cloud services, despite the lesser splash made by the developments. Amazon “Actually earned the majority of its overall profit through the first quarter of 2017 from its Amazon Web Service (AWS) business, which rents cloud-based computing services and online access to software hosted in Amazon data centers.”
But it’s not just the growth that Harpaz points to as a trend, though it’s difficult to argue that the numbers don’t paint a clear picture. What Harpaz claims is just as strong an indicator of the cloud’s importance is whois growing from its use.
Oracle, which brought in $7.5B in on-premise software during the first quarter of 2017, and whose founder ranks No. 7 on the Frober Billionares List, is shifting toward a greater reliance on the cloud. As Harpaz states, “That’s a really big deal.”
It’s not only companies that failed with traditional models and are reinventing the game. The cloud is attracting some of the most successful software providers in the world, despite the success they’ve achieved with a more traditional delivery model. It’s a sign that there may never be a lengthy struggle between on premise and cloud solutions. It will only be cloud. Those that fail to transition may not be around long enough to struggle.