Monday, October 29, 2018

Cloud Companies Continue to Make Major Investments into Data Centers

Microsoft Azure Cloud Service.jpeg
As many of you know, I’ve been evangelizing for Cloud Services for quite a while now.  Leaving the “messy” part of technology to experts who know the best ways to backup, secure, and maintain your data is smart, in my opinion.  And… with the increased volume of data we are creating (both business and personal) it’s a great idea to not trust these processes to someone that is not an educated well-trained expert in the area.
Along those lines, I've recently seen discussion on not only the proliferation of data in the Cloud, but how much companies that provide Cloud services are investing to make sure they stay state of the art with their storage and processes.
The 3 biggest players in this market are Amazon, Alphabet (parent of Google), and Microsoft.  By taking a look at these companies expenditures, we can get a basic idea and overall feel for their dedication and support of the platform.
Afraid to give too much information away to their competitors, companies are hesitant to mention exact numbers.  Instead, they choose to list expenditures is overall categories, but from those categories we can glean some pretty interesting info.
For instance, Alphabet listed expenditures of nearly $5.6 billion (yup, with a B)  on “data center construction, production equipment, and facilities in Q3 2018.  That’s a pretty whopping big number, especially when one backtracks and realizes the same category was $3.6 billion during Q3 of 2017.  We are looking at an increase of $2 billion in expenditures over the same period as one year ago.  That should really tell you something.  One also needs to factor in that Google is #3 in this category, so they are most likely spending in an effort to play “catch up” with Amazon and Microsoft.
The folks at Amazon, as a way of comparison, are actually spending less than they did a year ago, The company reports that in 2017 their spending was up 69% for data centers (compared to 2016) while this year it is only up 9% (compared to 2017).  That makes it pretty obvious that Amazon spent heavily last year on their cloud capacity.
Something else to remember is that these companies are doing hard core analytics on where things are going in the future.  The reasons they are spending so much money on building out their cloud services is because their customers are spending on clout services.  They are simply following the demand of the customer.  With that in mind, one can reasonably see the continued increase in cloud computing and cloud storage.

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