The market for cloud computing continues to defy all previous expectations. The most important concept in cloud computing is “hyperscale.” To support their websites and service, Amazon, Microsoft, and Google have all built massive computing infrastructure. The data centers these companies use are vastly bigger and more efficient than any data center that most other companies could build on their own.
Microsoft, as well as other technology companies, are building data centers around the world.
These companies now rent some of this computing capacity to developers and companies anywhere in the world. A developer or a company can use a credit card and get immediate access to basically unlimited computing power. It means that software can run at much larger scales, for much less cost, without anyone having to worry about maintaining an expensive data center.
This is what the inside of a typical Azure data center looks like.
Amazon, Microsoft, and Google are reporting impressive earnings last quarter, not least because of their big bets on the cloud. Amazon is number one now with about 27% of the cloud market, with Microsoft coming in second with about 16%. As more companies move to the cloud market, these percentages are expected to grow, and serves offered will continue to improve. The good news is Amazon and Microsoft are starting to make money on these cloud offering, so more services are expected to be revealed soon.