1
The rivalry between Amazon Web Services, Microsoft
Azure, and Google Platform, and how multi-cloud
strategies are transforming the industry.
Cloud Wars
2
The presentation will also be sent to you.
Feel free to share with colleagues. The
resolution of some slides may be suboptimal
due to the webinar software. Those slides will
look fine in the presentation that we send you.
Briefing recording will be distributed
http://support.citrixonline.com/en_US/Webinar
W I T H I N 2 4 H O U R S
3
@cbinsights
@judwaite
#cloudwars
J O I N T H E C O N V E R S A T I O N O N T W I T T E R
4
W H O W E A R E
The technology market
intelligence platform.
CB Insights software lets you predict, discuss,
and communicate emerging technology trends
using data in ways that are beyond human
cognition. We are a leader in the Expert Automation
& Augmentation Software (EAAS) space.
5
T R U S T E D B Y T H E W O R L D ' S L E A D I N G C O M P A N I E S
"We use CB Insights to find emerging trends
and interesting companies that might signal a shift in
technology or require us to reallocate resources."
Beti Cung, Corporate Strategy, Microsoft
Experience-based Insights
from Peer Executives
Let our executive peer network
help inform solutions to your
company's most complex growth
challenges.
If you are a C-level, EVP or SVP level executive at a
company doing $1B+ in revenue, request an invite
by emailing community@cbinsights.com.
LEARN MORE
7
Jud Waite
Jud Waite is an intelligence analyst at CB Insights, where he produces data-
driven analysis and research reports on private company financings, exits, and
performance trends across emerging industries, geographies and investors. His
research has been cited in Business Insider, CNBC, Bloomberg, CNBC, and the
Financial Times.
Prior to joining the research team at CB Insights, Jud was an early member of CB
Insights' Customer Success team where he specialized in working with venture
investors. Jud is a graduate of Lafayette College.
Popular research by Jud:
What Is 5G? Understanding The Next-Gen Wireless System Set To Enable Our
Connected Future
Rich Communication Services (RCS): The Next-Gen Messaging Tech
Reinventing Brand Communications
@judwaite | jwaite@cbinsights.com
Senior Intelligence Analyst
A B O U T T H E A N A L Y S T
8
Contents
9
17
39
49
56
A Brief History of Cloud Computing
The Emergence of Cloud Wars
The Dominance of AWS
The Enterprise Expertise of Azure
The Long Game of GCP
The Rise of Multi-Cloud Strategies
Shifting Power Dynamics
Questions?
9
C L O U D W A R S
A Brief History of
Cloud Computing
10
The rapid expansion of internetworking
John McCarthy
starts work
on the first
time-sharing
project
J.C.R Licklider
presents the
idea of an
Intergalactic
Network
First
messages
sent on the
ARPANET
Time-sharing
solutions
become
commercially
available
ARPANET
expands with
the addition
of CSNET
1959
1963
1969
1970s
1981
The internet
becomes
global and the
term "cloud
computing" is
first used
1990s
1969
1973
1970
11
CSNET connects to ARPANET in 1981
CSNET as of June 1st, 1983
12
The internet becomes global in the 1990s
Source: Brian Reid; Global aggregate news flow on May 13th, 1993
13
Compaq uses the term 'cloud' first in 1996
Source: https://s3.amazonaws.com/files.technologyreview.com/p/pub/legacy/compaq_cst_1996_0.pdf
14
"What's interesting [now] is that there is an emergent new model. I don't
think people have really understood how big this opportunity really is. It
starts with the premise that the data services and architecture should be
on servers. We call it cloud computing they should be in a 'cloud'
somewhere." August 2006
Eric Schmidt
Former CEO of Google
G O O G L E R E C O G N I Z E S T H E P O T E N T I A L O F T H E C L O U D
15
AWS had already established its cloud platform
Amazon Web Services Solutions
Catalog, August 2006
2003
Source: https://archive.org/web
2004
2006
2016
AWS
introduces
Simple Queue
Service (SQS)
AWS
re-launches
with delivery
of S3 and EC2
Andy Jassy
promoted to
CEO of AWS
Andy Jassy
founds AWS
with team of
57
16
"Amazon S3 is based on the idea that quality Internet-based storage should be taken for
granted. It helps free developers from worrying about where they are going to store
data, whether it will be safe and secure, if it will be available when they need it, the
costs associated with server maintenance, or whether they have enough storage
available. Amazon S3 enables developers to focus on innovating with data, rather than
figuring out how to store it." March 2006
Andy Jassy
CEO of AWS
C L O U D C O M P U T I N G R E M O V E S B A R R I E R S T O E N T R Y
17
C L O U D W A R S
The Emergence
of Cloud Wars
18
Microsoft and Google follow Amazon's lead
AWS re-
launches
with SQS, S3,
and EC2
Google
releases
Google App
Engine
Microsoft
launches
Windows
Azure
Google
launches
Google
Cloud
Storage
Google
launches
Google
Compute
Engine
2006
2008
2010
2010
2013
Windows
Azure
renames to
Microsoft
Azure
2014
2006
2010
2013
>
>
19
C L O U D W A R S
The Dominance of
Amazon Web Services
20
The virtuous cycle of cloud computing
Source: https://cloudblogs.microsoft.com/
Lower prices
attract more
customers
More customers
utilize more
resources
Greater utilization
of resources
requires more
infrastructure
Buying more
infrastructure in
volume leads to
lower unit costs
Lower unit costs
allow for lower
customer prices
21
AWS offers ~140 services across 19 categories
Source: https://aws.amazon.com/products/
22
AWS maintains a third of cloud market share
Source: Synergy Research; IaaS & PaaS Markets
13%
48%
6%
33%
Azure
GCP
Others
AWS
23
AWS is the 5th largest enterprise tech company
Source: SEC.gov; Annual revenue in billions, Q1 2017 Q4 2017
$102.3
$79.1
$38.9
$26.5
$17.5
Microsoft
IBM
Oracle
SAP
AWS
24
"There won't be just one successful player. There won't be 30 because scale really
matters here in regards to cost structure, as well as the breadth of services, but there
are going to be multiple successful players, and who those are I think is still to be
written. But I would expect several of the older guard players to have businesses here as
they have large installed enterprise customer bases and a large sales force and things of
that sort."
Andy Jassy
CEO of AWS
A W S A C K N O W L E D G E S G R O W I N G C O M P E T I T I O N
25
C L O U D W A R S
The Enterprise Expertise of
Microsoft Azure
26
Hybrid-cloud remains a priority for businesses
Source: https://cloudblogs.microsoft.com/
Old IT
New IT Reality
Implementation
Workload Placement
Physical
Servers and
Virtual
Machines
On-Premise,
Non-Cloud
Hybrid Cloud
Off-Premise,
Public Cloud
On-Premise,
Private Cloud
SaaS: Office 365
PaaS: Azure
IaaS: Azure
Optimized for
large, unique,
and/or
sensitive
workloads
27
VMs are often less expensive on Azure
Source: https://www.parkmycloud.com/cloud-pricing-comparison/
Type
Virtual CPUs
Memory
AWS
Azure
GCP
General Purpose
2
8GB
$0.0928
$0.0850
$0.1070
4
16GB
$0.1856
$0.1700
$0.2140
8
32GB
$0.3712
$0.3390
$0.4280
Compute Optimized
2
4GB
$0.0850
$0.0850
$0.0813
4
8GB
$0.1700
$0.1690
$0.1626
8
16GB
$0.3400
$0.3380
$0.3253
Memory Optimized
2
16GB
$0.1330
$0.1330
$0.1348
4
32GB
$0.2660
$0.2660
$0.2696
8
64GB
$0.5320
$0.5320
$0.5393
28
"In Azure, we bill all virtual machines (VMs) running Linux and Windows on a per-minute basis,
rounded down to the nearest minute. We only charge for the full minutes you use. This saves
you money and simplifies your bill.
In addition, Azure led the industry with a new service called Azure Container Instances (ACIs) that
realizes the true value of a per-second billing model. ACI offers containers that start in seconds
and are billed per-second without any infrastructure management." October 2017
Arpan Shah
General Manager at Azure
P R I C I N G S I M P L I C I T Y W I T H A Z U R E
29
Azure has data centers in more regions globally
Source: Respective Cloud Websites
19
44
17
4
10
3
AWS
Azure
GCP
Current Regions
Upcoming Regions
30
Azure breaks ground in South Africa and UAE
Source: https://azure.microsoft.com/en-us/global-infrastructure/regions/
31
C L O U D W A R S
The Long Game of
Google Cloud Platform
32
GCP known for its content delivery network
Source: https://cloud.google.com/about/locations/
33
Google continues to invest in subsea cables
Source: https://www.blog.google/products/google-cloud/expanding-our-global-infrastructure-new-regions-and-subsea-cables/
34
Following AWS, Google Compute Engine
also moves to per-second billing
September 26th, 2017
migrates from
to
35
Google backs more open source projects
Source: https://opensource.google.com/projects/
36
GCP bets on machine learning at the edge
Source: https://cloud.google.com/edge-tpu/
Edge TPU
Cloud IoT Core
37
GCP ranks higher in customer satisfaction
Source: https://www.gartner.com/reviews/market/public-cloud-iaas
4.4
4.1
4.5
AWS
Azure
GCP
38
"We're playing the long game. This thing is early. Some
people estimate that only 10 percent of workloads are in
the big public clouds. And if it's not in a public cloud, it is
going to be in a public cloud." July 2018
Diane Greene
CEO of Google Cloud
G C P P L A Y S T H E L O N G G A M E
39
C L O U D W A R S
The Rise of
Multi-Cloud Strategies
40
"We've been able to moderate user cost growth through the successful
execution of our multi-cloud strategy. Specifically, hosting costs per user
dropped from $0.72 a year ago to $0.70 in the quarter.
That's great progress in a year when our sales have more than doubled and
engagement metrics have grown substantially." February 2018
Drew Vallero
Former CFO of Snap
S N A P F I N D S S U C C E S S W I T H I T S M U L T I - C L O U D S T R A T E G Y
41
Multi-cloud discussed more on earnings calls
Quarterly mentions of 'multi-cloud' or 'multi cloud' on earnings calls, Q4 2013 Q2 2018 / Represents the quarter in which the earnings call took place
42
Containers facilitate multi-cloud adoption
Containers offer
developers and system
admins the ability to
segment applications into
microservices.
Containers are
lightweight, which makes
them less resource
intensive and portable
across cloud platforms.
43
GCP offers open source containerization tools
July 2015
May 2017
July 2018
>
>
Kubernetes v1.0
Istio v0.1
Knative
Istio is an open-source framework for
connecting, managing, and securing
microservices across heterogeneous
clouds, platforms, and vendors.
Knative is an open source software
layer that helps developers and
system admins deliver serverless
functions to developers on any
cloud.
Kubernetes manages containerized
applications across multiple hosts,
providing basic mechanisms for
deployment, maintenance, and
scaling of applications.
44
"8 out of 10 enterprises today have a multi-cloud strategy The move to
software containers has helped in simplifying and speeding up how we
package and deliver software And as Sundar mentioned, 4 years ago we
released Kubernetes today it's by far the most popular way to run and
manage containers." October 2017
Urs Hlzle
SVP at Google Cloud
G C P A C K N O W L E D G E S M U L T I - C L O U D A D O P T I O N
45
The private market multi-cloud ecosystem
Private companies that raised equity financing between 6/24/2016 6/24/2018
46
Docker is a provider of
containerization products and
services.
Developers and system admins
use Docker to build, ship, and run
distributed applications on-prem
or in the cloud.
C L O U D W A R S
Funding
$240 Million
Valuation
$1.3 Billion
Backed by:
47
"With an estimated 85 percent of today's enterprise IT organizations employing a multi-
cloud strategy, it has become more critical that customers have a 'single pane of glass'
for managing their entire application portfolio.
[Docker] delivers on the promise of the cloud by offering customers the portability
benefits of containerized applications and the portable management of those
containerized applications across all infrastructure." June 2018
Scott Johnston
CPO of Docker
D O C K E R C O N T A I N E R S A R E P O R T A B L E A C R O S S C L O U D S
48
Docker is the most used container tool today
Respondents of RightScale's State of the Cloud Report from 2015 2018
13%
27%
35%
49%
2015
2016
2017
2018
49
C L O U D W A R S
Shifting
Power Dynamics
50
Amazon creates a conflict of interest for AWS
Diane Greene announced a major
win over Amazon: Target is using
Google's cloud
July 24th, 2018
Microsoft and Walmart team up to
take on Amazon
July 17th, 2018
51
Azure and GCP acquire more cloud companies
Quarterly mentions of 'multi-cloud' or 'multi cloud' on earnings calls, Q4 2013 Q2 2018 / Represents the quarter in which the earnings call took place
2018 Acquisitions
2017 Acquisitions
2016 Acquisitions
2015 Acquisitions
2014 Acquisitions
2013 Acquisitions
3
1
1
6
6
3
6
4
2
1
6
5
3
4
1
5
3
0
5
10
15
20
25
AWS
Azure
GCP
52
GitHub is a version control and
source code manager for more
than 28M developers worldwide.
The company boasts 57M+
repositories and $100M+ in
annual recurring revenue from
enterprise customers.
C L O U D W A R S
Funding
$350 Million
Valuation
$7.5 Billion
Acquired by:
53
Azure applies for more cloud patents than AWS
Total patent applications including "cloud" by application date, 2013 2018 YTD (7/20/2018)
Amazon
Microsoft
Google
54
Azure and GCP growth is ~2X that of AWS
Source: Canalys; Estimated IaaS growth year-over-year, 2016 2017
45%
98%
85%
AWS
Azure
GCP
55
56
Questions?
Twitter: @judwaite
jwaite@cbinsights.com
57
Collections
Market landscapes that highlight emerging players,
incumbents, and more in new technology areas
Market Map
Visually compelling industry market landscapes
Augment this briefing with the CBI platform
Not a customer? Get access today.
D I G G I N G D E E P E R
This briefing contains links to the underlying data, trends, research on the
CB Insights machine intelligence platform. These links are described below.
Advanced Search
Drill into the underlying data for a particular point
Trends
What's happing, who is being mentioned, company
comparisons, and more
Reports
Visualizations providing insight into markets you
care about
Profile
Take a deep dive into a specific company, their
performance, who invested in who, and more
58
The CB Insights platform has the
underlying data included in this report
W H E R E I S A L L T H I S D A T A F R O M ?
CLICK HERE TO SIGN UP FOR FREE
59
cbinsights.com
@cbinsights
Jud Waite Senior Analyst, TMT
jwaite@cbinsights.com
@judwaite