Amazon.com, Inc. (NASDAQ:AMZN), Microsoft, Google And IBM Control Most Of The Global Cloud Infrastructure Service Market

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Gartner estimates that the cloud infrastructure service will be a $16.5 billion economy by the end of this year, and guess who is leading on that front? Amazon.com, Inc. (NASDAQ:AMZN), correct. However, Amazon is only one of the most successful cloud infrastructure providers. Amazon, and Microsoft Corporation (NASDAQ:MSFT) are the early leaders in public cloud infrastructure. Amazon and Microsoft, together with Google Inc (NASDAQ:GOOG) and International Business Machines Corp. (NYSE:IBM) control more than half of the global cloud infrastructure market.

As organizations shift from on-premise infrastructure to the cloud, demand for managed cloud services is on the rise. It has been cited that for cloud providers seeking to reach the mainstream customer base, managed services are a top priority. With that in mind, Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft are trying to break away from the park by widening their managed services and making them more affordable for prospective customers.

Going about managed-cloud services

There are at least two options for organizations interested in deploying public cloud in their system. They can either hire in-house IT experts to handle the managed functions on their clouds or they can buy the services from their public cloud providers. The decision here depends on whether IT is core or non-core to the organization in question. For the organization where IT is not core, hiring a full-time IT experts for the functions of managed services may not be economical, which is why Amazon and Microsoft are working to render these services on their platforms.

Rackspace to render managed-services on AWS and Azure

Rackspace Hosting, Inc. (NYSE:RAX), a contester in the cloud infrastructure field that has fallen behind the competition, has figured out how to reinvent itself in the cloud. The company is working with Amazon.com, Inc. (NASDAQ:AMZN) and Microsoft to support managed services, Amazon Web Services (AWS) and Azure, respectively. By choosing to partner with leaders in the public cloud space, Rackspace is clearly trying to cast its net wider. However, its success or failure will depend on how affordable its managed services are to organizations in which IT is not a core part of the business.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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