Cloud Wars by CBInsights covering AWS, Azure and Google Cloud

The rivalry between Amazon Web Services, Microsoft Azure, and Google Platform, and how multi-cloud strategies are transforming the industry
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cloud multi cloud Azure AWS Source http Google
The rivalry between Amazon Web Services, Microsoft Azure, and Google Platform, and how multi-cloud strategies are transforming the industry
About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.
cloud multi cloud Azure AWS Source http Google
1
The rivalry between Amazon Web Services, Microsoft 
Azure, and Google Platform, and how multi-cloud 
strategies are transforming the industry. 
Cloud Wars
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@cbinsights
@judwaite
#cloudwars
J O I N  T H E  C O N V E R S A T I O N  O N  T W I T T E R
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Jud Waite
Jud Waite is an intelligence analyst at CB Insights, where he produces data-
driven analysis and research reports on private company financings, exits, and 
performance trends across emerging industries, geographies and investors. His 
research has been cited in Business Insider, CNBC, Bloomberg, CNBC, and the 
Financial Times.
Prior to joining the research team at CB Insights, Jud was an early member of CB 
Insights' Customer Success team where he specialized in working with venture 
investors. Jud is a graduate of Lafayette College.
Popular research by Jud:
 What Is 5G? Understanding The Next-Gen Wireless System Set To Enable Our 
Connected Future
 Rich Communication Services (RCS): The Next-Gen Messaging Tech 
Reinventing Brand Communications
@judwaite |   jwaite@cbinsights.com
Senior Intelligence Analyst
A B O U T  T H E  A N A L Y S T
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Contents
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17
39
49
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A Brief History of Cloud Computing
The Emergence of Cloud Wars
 The Dominance of AWS
 The Enterprise Expertise of Azure
 The Long Game of GCP
The Rise of Multi-Cloud Strategies
Shifting Power Dynamics
Questions?
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C L O U D  W A R S
A Brief History of
Cloud Computing
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The rapid expansion of internetworking
John McCarthy 
starts work 
on the first 
time-sharing 
project
J.C.R Licklider
presents the 
idea of an 
Intergalactic 
Network
First 
messages 
sent on the 
ARPANET
Time-sharing 
solutions 
become 
commercially 
available
ARPANET 
expands with 
the addition 
of CSNET
1959
1963
1969
1970s
1981
The internet 
becomes 
global and the 
term "cloud 
computing" is 
first used
1990s
1969
1973
1970
11
CSNET connects to ARPANET in 1981
CSNET as of June 1st, 1983
12
The internet becomes global in the 1990s
Source: Brian Reid; Global aggregate news flow on May 13th, 1993
13
Compaq uses the term 'cloud' first in 1996
Source: https://s3.amazonaws.com/files.technologyreview.com/p/pub/legacy/compaq_cst_1996_0.pdf
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"What's interesting [now] is that there is an emergent new model. I don't 
think people have really understood how big this opportunity really is. It 
starts with the premise that the data services and architecture should be 
on servers. We call it cloud computing  they should be in a 'cloud' 
somewhere."  August 2006
Eric Schmidt
Former CEO of Google
G O O G L E  R E C O G N I Z E S  T H E  P O T E N T I A L  O F  T H E  C L O U D
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AWS had already established its cloud platform
Amazon Web Services Solutions 
Catalog, August 2006
2003
Source: https://archive.org/web
2004
2006
2016
AWS 
introduces 
Simple Queue 
Service (SQS)
AWS 
re-launches 
with delivery 
of S3 and EC2
Andy Jassy
promoted to 
CEO of AWS
Andy Jassy
founds AWS 
with team of 
57
16
"Amazon S3 is based on the idea that quality Internet-based storage should be taken for 
granted. It helps free developers from worrying about where they are going to store 
data, whether it will be safe and secure, if it will be available when they need it, the 
costs associated with server maintenance, or whether they have enough storage 
available. Amazon S3 enables developers to focus on innovating with data, rather than 
figuring out how to store it."  March 2006
Andy Jassy
CEO of AWS
C L O U D  C O M P U T I N G  R E M O V E S  B A R R I E R S  T O  E N T R Y
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C L O U D  W A R S
The Emergence 
of Cloud Wars
18
Microsoft and Google follow Amazon's lead
AWS re-
launches 
with SQS, S3, 
and EC2
Google 
releases 
Google App 
Engine
Microsoft 
launches 
Windows 
Azure
Google 
launches 
Google 
Cloud 
Storage
Google 
launches 
Google 
Compute 
Engine
2006
2008
2010
2010
2013
Windows 
Azure 
renames to 
Microsoft 
Azure
2014
2006
2010
2013
>
>
19
C L O U D  W A R S
The Dominance of 
Amazon Web Services
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The virtuous cycle of cloud computing
Source: https://cloudblogs.microsoft.com/
Lower prices 
attract more 
customers
More customers 
utilize more 
resources
Greater utilization 
of resources 
requires more 
infrastructure
Buying more 
infrastructure in 
volume leads to 
lower unit costs
Lower unit costs 
allow for lower 
customer prices
21
AWS offers ~140 services across 19 categories
Source: https://aws.amazon.com/products/
22
AWS maintains a third of cloud market share
Source: Synergy Research; IaaS & PaaS Markets
13%
48%
6%
33%
Azure
GCP
Others
AWS
23
AWS is the 5th largest enterprise tech company
Source: SEC.gov; Annual revenue in billions, Q1 2017  Q4 2017
$102.3 
$79.1 
$38.9 
$26.5 
$17.5 
Microsoft
IBM
Oracle
SAP
AWS
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"There won't be just one successful player. There won't be 30 because scale really 
matters here in regards to cost structure, as well as the breadth of services, but there 
are going to be multiple successful players, and who those are I think is still to be 
written. But I would expect several of the older guard players to have businesses here as 
they have large installed enterprise customer bases and a large sales force and things of 
that sort."
Andy Jassy
CEO of AWS
A W S  A C K N O W L E D G E S  G R O W I N G  C O M P E T I T I O N
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C L O U D  W A R S
The Enterprise Expertise of 
Microsoft Azure
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Hybrid-cloud remains a priority for businesses
Source: https://cloudblogs.microsoft.com/
Old IT
New IT Reality
Implementation
Workload Placement
Physical 
Servers and 
Virtual 
Machines
On-Premise,
Non-Cloud
Hybrid Cloud
Off-Premise,
Public Cloud
On-Premise,
Private Cloud
SaaS: Office 365
PaaS: Azure
IaaS: Azure
Optimized for 
large, unique, 
and/or 
sensitive 
workloads
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VMs are often less expensive on Azure
Source: https://www.parkmycloud.com/cloud-pricing-comparison/
Type
Virtual CPUs
Memory
AWS
Azure
GCP
General Purpose
2
8GB
$0.0928
$0.0850
$0.1070
4
16GB
$0.1856
$0.1700
$0.2140
8
32GB
$0.3712
$0.3390
$0.4280
Compute Optimized
2
4GB
$0.0850
$0.0850
$0.0813
4
8GB
$0.1700
$0.1690
$0.1626
8
16GB
$0.3400
$0.3380
$0.3253
Memory Optimized
2
16GB
$0.1330
$0.1330
$0.1348
4
32GB
$0.2660
$0.2660
$0.2696
8
64GB
$0.5320
$0.5320
$0.5393
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"In Azure, we bill all virtual machines (VMs) running Linux and Windows on a per-minute basis, 
rounded down to the nearest minute. We only charge for the full minutes you use. This saves 
you money and simplifies your bill. 
In addition, Azure led the industry with a new service called Azure Container Instances (ACIs) that 
realizes the true value of a per-second billing model. ACI offers containers that start in seconds 
and are billed per-second without any infrastructure management."  October 2017
Arpan Shah
General Manager at Azure
P R I C I N G  S I M P L I C I T Y  W I T H  A Z U R E
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Azure has data centers in more regions globally
Source: Respective Cloud Websites
19
44
17
4
10
3
AWS
Azure
GCP
Current Regions
Upcoming Regions
30
Azure breaks ground in South Africa and UAE
Source: https://azure.microsoft.com/en-us/global-infrastructure/regions/
31
C L O U D  W A R S
The Long Game of 
Google Cloud Platform
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GCP known for its content delivery network
Source: https://cloud.google.com/about/locations/
33
Google continues to invest in subsea cables
Source: https://www.blog.google/products/google-cloud/expanding-our-global-infrastructure-new-regions-and-subsea-cables/
34
Following AWS, Google Compute Engine 
also moves to per-second billing
September 26th, 2017
migrates from 
to
35
Google backs more open source projects
Source: https://opensource.google.com/projects/
36
GCP bets on machine learning at the edge
Source: https://cloud.google.com/edge-tpu/
Edge TPU
Cloud IoT Core
37
GCP ranks higher in customer satisfaction
Source: https://www.gartner.com/reviews/market/public-cloud-iaas
4.4
4.1
4.5
AWS
Azure
GCP
38
"We're playing the long game. This thing is early. Some 
people estimate that only 10 percent of workloads are in 
the big public clouds. And if it's not in a public cloud, it is 
going to be in a public cloud."  July 2018
Diane Greene
CEO of Google Cloud
G C P  P L A Y S T H E  L O N G  G A M E
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C L O U D  W A R S
The Rise of
Multi-Cloud Strategies
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"We've been able to moderate user cost growth through the successful 
execution of our multi-cloud strategy. Specifically, hosting costs per user 
dropped from $0.72 a year ago to $0.70 in the quarter.
That's great progress in a year when our sales have more than doubled and 
engagement metrics have grown substantially."  February 2018
Drew Vallero
Former CFO of Snap
S N A P  F I N D S  S U C C E S S  W I T H  I T S  M U L T I - C L O U D  S T R A T E G Y
41
Multi-cloud discussed more on earnings calls
Quarterly mentions of 'multi-cloud' or 'multi cloud' on earnings calls, Q4 2013  Q2 2018 / Represents the quarter in which the earnings call took place
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Containers facilitate multi-cloud adoption
Containers offer 
developers and system 
admins the ability to 
segment applications into 
microservices. 
Containers are 
lightweight, which makes 
them less resource 
intensive and portable 
across cloud platforms. 
43
GCP offers open source containerization tools
July 2015
May 2017
July 2018
>
>
Kubernetes v1.0
Istio v0.1
Knative
Istio is an open-source framework for 
connecting, managing, and securing 
microservices across heterogeneous 
clouds, platforms, and vendors.
Knative is an open source software 
layer that helps developers and 
system admins deliver serverless 
functions to developers on any 
cloud.
Kubernetes manages containerized 
applications across multiple hosts, 
providing basic mechanisms for 
deployment, maintenance, and 
scaling of applications. 
44
"8 out of 10 enterprises today have a multi-cloud strategy  The move to 
software containers has helped in simplifying and speeding up how we 
package and deliver software  And as Sundar mentioned, 4 years ago we 
released Kubernetes  today it's by far the most popular way to run and 
manage containers."  October 2017
Urs Hlzle
SVP at Google Cloud
G C P  A C K N O W L E D G E S  M U L T I - C L O U D  A D O P T I O N
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The private market multi-cloud ecosystem
Private companies that raised equity financing between 6/24/2016  6/24/2018
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Docker is a provider of 
containerization products and 
services. 
Developers and system admins 
use Docker to build, ship, and run 
distributed applications on-prem
or in the cloud.
C L O U D  W A R S
Funding
$240 Million
Valuation
$1.3 Billion
Backed by:
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"With an estimated 85 percent of today's enterprise IT organizations employing a multi-
cloud strategy, it has become more critical that customers have a 'single pane of glass' 
for managing their entire application portfolio.
[Docker] delivers on the promise of the cloud by offering customers the portability 
benefits of containerized applications and the portable management of those 
containerized applications across all infrastructure."  June 2018
Scott Johnston
CPO of Docker
D O C K E R  C O N T A I N E R S  A R E  P O R T A B L E  A C R O S S  C L O U D S
48
Docker is the most used container tool today
Respondents of RightScale's State of the Cloud Report from 2015  2018
13%
27%
35%
49%
2015
2016
2017
2018
49
C L O U D  W A R S
Shifting
Power Dynamics
50
Amazon creates a conflict of interest for AWS
Diane Greene announced a major 
win over Amazon: Target is using 
Google's cloud
July 24th, 2018
Microsoft and Walmart team up to 
take on Amazon
July 17th, 2018
51
Azure and GCP acquire more cloud companies
Quarterly mentions of 'multi-cloud' or 'multi cloud' on earnings calls, Q4 2013  Q2 2018 / Represents the quarter in which the earnings call took place
2018 Acquisitions
2017 Acquisitions
2016 Acquisitions
2015 Acquisitions
2014 Acquisitions
2013 Acquisitions
3
1
1
6
6
3
6
4
2
1
6
5
3
4
1
5
3
0
5
10
15
20
25
AWS
Azure
GCP
52
GitHub is a version control and 
source code manager for more 
than 28M developers worldwide. 
The company boasts 57M+ 
repositories and $100M+ in 
annual recurring revenue from 
enterprise customers. 
C L O U D  W A R S
Funding
$350 Million
Valuation
$7.5 Billion
Acquired by:
53
Azure applies for more cloud patents than AWS
Total patent applications including "cloud" by application date, 2013  2018 YTD (7/20/2018)
Amazon
Microsoft
Google
54
Azure and GCP growth is ~2X that of AWS
Source: Canalys; Estimated IaaS growth year-over-year, 2016  2017
45%
98%
85%
AWS
Azure
GCP
55
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Questions?
Twitter: @judwaite
jwaite@cbinsights.com 
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@judwaite