AWS and Azure spending big bucks on data centres to get ahead
A new report from Canalys has revealed what the world’s two largest cloud providers have been up to – and they’ve certainly been busy.
Both Amazon Web Services (AWS) and Microsoft Azure saw strong growth in Q4 2018 as the adoption of cloud infrastructure services is showing no signs of slowing.
AWS grew 46 percent to reach US$7 billion in the latest quarter. While Microsoft Azure had a significantly higher growth rate with 76 percent, it is still somewhat further back in second place with $4 billion.
Canalys research analyst Daniel Liu says fuelling this growth is the massive infrastructure investments both companies are involved with to expand their global coverage and refresh existing data centres.
“2018 was another year of rapid growth as businesses accelerated digital transformation projects and workload migration. This is set to continue in 2019, with more customers adopting multi-cloud strategies, including hybrid IT,” says Liu.
“AWS maintained momentum due to traction from its enterprise customers, while Microsoft’s progress benefits from its long-standing hybrid IT initiatives, taken up by its existing large base of on-premises customers.”
Both companies have made increasingly larger investments in data centre infrastructure, with the latest public financial reports from Amazon and Microsoft revealing their company-wide capital expenditure (CAPEX) continued to rise annually.
These CAPEX numbers are not exclusively allocated to cloud, but also to investment activities like the purchase of property and equipment or facility assets.
In regards to where the companies currently stand, AWS has 60 cloud infrastructure locations around the globe, with another 12 in the works in Bahrain, Hong Kong, Italy, and South Africa. These investments brought Amazon’s CAPEX spend to reach $26 billion in 2018, with the rate of growth slowing slightly to seven percent year-on-year.
Meanwhile, Microsoft’s CAPEX reached $14 billion, an increase of 64 percent. It has 54 cloud regions worldwide with another 10 to be launched across Western Europe and Africa.
Liu says the growing need for data sovereignty, lower latency, and higher performance – not to mention competition – are all major factors in driving cloud providers to increase infrastructure investment and bring data centres closer to customers.
“The investment needed to build new interconnected cloud data centres is huge, and due to the constant pressure to optimise data centre operating costs, refresh cycles are shorter as they drive innovation,” says Liu.
“Cloud providers are under pressure to be profitable and have to manage CAPEX. The signs are they are currently focusing more on capacity utilisation, which will be reflected in their CAPEX numbers in the first half of 2019. This will impact infrastructure and component suppliers in the short term.”
source datacentrenewsue
Industry: Data Centre News
Latest Jobs
-
- Cyber Security Senior Consultant | London | FS
- London
- Apply today
-
London | FS | Cyber Security Senior Consultant We are looking for experienced cyber security consultant with experience helping clients within the financial services industry. The role will include, but not be limited to; Conduct cyber security assessments, develop strategies, and provide advice to clients. Oversee and deliver security improvements projects. Help clients understand and comply with financial sector regulations. Provide insights and thought leadership on emerging trends in cyber security. Current experience within a client facing, cyber consulting role within Financial Services is essential. All the usual badges are nice to have, although not essential- for example; ISO27001, CISSP, CISM etc etc Sponsorship is not available for this role. Applicants must be UK based and able to travel on occasion to client site and the office in London To find out more reach out to me on 07884666351 or chris.holt@dclsearch.com
-
- Senior Penetration Tester - UK - Ability to achieve security clearance.
- United Kingdom
- To attract the right person
-
Senior Penetration tester, who has the ability to achieve security clearance. (Visa sponsorships NOT available - sorry) UK based - remote first - occasional travel. Red teaming experience desirable. The successful person needs to have a history of engaging directly with customers (consultancy experience) technical delivery of penetration tests AND report writing. Limited travel - company operates a remote first approach. Must be living in the UK. Not one of the usual names in the pen testing industry. Looking for someone highly technical but looking to grow and develop their skills. Apply here or Reach out to me on chris.holt@dclsearch.com or 07884666351 All details kept discreet
-
- Cloud Architect- German Speaker
- Hungary
- Upto €48000 per year + bonus + benefits
-
As a Senior Pre-Sales Solutions Architect, you will play a pivotal role in driving our sales success by translating complex technical solutions into compelling proposals that resonate with our clients. You will collaborate closely with our sales teams to understand customer needs, design tailored solutions, and negotiate successful deals. Responsibilities: Solution Design: Develop comprehensive technical solutions that align with customer business objectives and industry best practices. Proposal Development: Create compelling proposals, including requirements gathering questionnaires, presentation materials, and Statements of Work (SOWs). Customer Engagement: Build strong relationships with clients, understanding their technical, business, and commercial requirements. Collaboration: Work closely with sales teams, delivery teams, and third-party partners to ensure successful project execution. Pricing Strategy: Define and deliver pricing strategies that align with customer needs and company objectives. Requirements: Experience in technical pre-sales or sales support roles. Proven track record in designing and delivering successful customer solutions. Strong technical foundation in areas such as VMware, Azure, AWS, cloud computing, and data center technologies. Excellent understanding of sales principles, account management, and negotiation techniques. Ability to explain complex technical concepts clearly and concisely. Experience working in international teams and supporting clients across multiple regions. Fluency in German and English is essential. Benefits: Competitive salary and benefits package Opportunity to work on challenging and rewarding projects Collaborative and supportive work environment Potential for career growth and advancement Please note that this role is focused on supporting German clients, but will also involve global client support as needed.