Amazon, Alphabet and Microsoft are set to increase their capital spending as they build cloud computing groups to support the growth of AI. The Big Tech groups currently dominate the cloud market and they have greatly increased their investment in computing infrastructure over the last few years.
The Cloud Computing Sector is Taking Off
The global market for cloud computing grew substantially from 2010 to 2020. It recorded a 635% jump, as a result of company investment. Some of the main driving factors behind the growth in the cloud market include the adoption of AI, big data and machine learning. Cloud computing also gives companies the chance to store huge amounts of data, off-site. This makes it accessible to wider networks, facilitating the sharing of information. Data can also be stored without device limitations.
An example of this would be the casino sector. Casinos have been a driving force for cloud adoption for quite some time, as it facilitates sites to have thousands of available games that can be loaded instantly without any need for download. This is ideal for games that have sequels, or large collections that are not suitable for individual downloads, like book of slots games. In this category, you have Book of Dead, Book of Adventure Super Stake Edition and Legacy of Dead. More recent titles include Pilgrim of Dead, which was released after the success of the previous games.
For casino gamers, downloading each option would be both time-consuming and inefficient, but the cloud facilitates instant playability across numerous titles with seamless execution. Companies across multiple sectors want this same experience to be possible, and the best way to do that would be to embrace cloud computing.
Cloud Computing on a Bigger Scale
Capital spending alone rose to $32 billion in September which is 50% more than the same period a few years ago. Analysts expect things to accelerate even further next year. Executives from the Big Tech Groups have said that generative AI is going to drive tens of billions in revenue, and as a result, tech giants are vying to increase their total share in the market.
For cloud computing to be done on a bigger scale, a tremendous amount of equipment is required. Servers and data centers will also have to be made. Microsoft in particular are ramping up their investment at the fastest pace to date, utilizing an uptick in AI workloads to enhance broader cloud facilitation.
All three tech giants are also investing with future revenues. Amazon’s quarterly figures include investment in cloud computing with the need for an early lead being more prominent than ever. Microsoft has also signed a deal with OpenAI, which has a valuation of $86 billion. This gives Microsoft users full access to the tech that powers ChatGPT. This is set to be a standard feature across different software developments, to push cloud computing and accessibility to users across numerous sectors.
It’s going to be interesting to see how the rush for cloud computing and AI adoption is going to change the future landscape for tech. New opportunities could be on the horizon, which is generating excitement and anticipation across numerous sectors.