Spending on Cloud Data Centers Generates Competition Among Tech Giants

Posted by Global 1 Resources on 13th May 2015

As cloud computing providers continue to compete for dominance of this rapidly-growing market, spending on cloud data center infrastructure is soaring -- with future spending only projected to increase even more.

According to a recent Data Center Knowledge article, Amazon, the currently undisputed leader of cloud computing, reported that its cloud computing platform, Amazon Web Services, is the fastest-growing component of its business.

Amazon Web Services' revenue in the first quarter of 2015 grew by 50% year over year, reaching a 12-month revenue of $5.16 billion, its recently-released earnings report revealed.

“Amazon Web Services is a $5 billion business and still growing fast — in fact it’s accelerating,” Jeff Bezos, Amazon founder and CEO, said in the earnings report.

To keep up with its cloud computing competitors and to meet growing demand, Amazon spent a whopping $7 billion on its Amazon Web Services in 2014. Google, Amazon's biggest rival in the cloud market, isn't shying from investing heavily in this cloud data center infrastructure and server rack enclosures, either, spending $2.93 billion in the first quarter of this year alone.

Microsoft, meanwhile, hasn't revealed the amount of money it invests in cloud data center infrastructure specifically. It did, however, report a $190 million year over year increase in its data center operating costs in the first quarter of this year. It's clear that the three biggest names in the tech world are locked in a spending race to develop their cloud infrastructure the fastest.

Currently, computer server rack manufacturing in the U.S., which employs some 9,566 people at 334 companies, is a $14 billion industry -- with the biggest names in technology battling for cloud computing dominance, who knows how much this industry will bring in by the time 2015 comes to an end