We’ve Reached the Cloud Computing Tipping Point

The past couple weeks have been a huge adventure for my family and me as we ran from the Santa Rosa fires. We spent the first week on the Mendocino coast where there are no computer stores. You can get a computer fixed, but can’t buy a new one in Gualala, Mendocino, or Ft. Bragg. So I bought an ancient IBM ThinkPad from MacDaddy Computer Repair only to learn that it wouldn’t produce text I could read. Hence the delay in filing this column — the first of two on the current state of cloud computing. The second column will appear sometime before Thursday when I have scheduled cataract surgery on both eyes. Provided nothing goes horribly wrong I should be back […]

The Cloud Computing Tidal Wave

The title above is a play on the famous Bill Gates memo, The Internet Tidal Wave, written in May, 1995. Gates, on one of his reading weeks, realized that the Internet was the future of IT and Microsoft, through Gates’s own miscalculation, was then barely part of that future. So he wrote the memo, turned the company around, built Internet Explorer, and changed the course of business history. That’s how people tend to read the memo, as a snapshot of technical brilliance and ambition. But the inspiration for the Gates memo was another document, The Final Days of Autodesk, written in 1991 by Autodesk CEO John Walker. Walker’s memo […]

Bob’s Big Picture technology predictions for 2017

2016-17I couldn’t put it off any longer so here are my technology predictions for 2017. I’ve been reading over my predictions from past years and see a fundamental change in structure over that time, going from an emphasis on products to an emphasis on companies. This goes along, I’d say, with the greater business orientation of this column. That makes sense with a maturing market and mature industries and also with the fact that a fair number of readers are here mainly as investors, something that didn’t used to be so much the case.

Of course we begin with a look at my predictions from a year ago to see how I did. Almost nobody in […]

Amazon’s cloud monopoly

GartnerCloudEarlier this year two different research reports came out describing the overall cloud computing market and Amazon’s role in it. Synergy Research Group saw Amazon as by far the biggest player (bigger in fact than the next four companies combined) with about 30 percent market share. But Gartner, taking perhaps a more focussed view of just the public cloud, claimed Amazon holds 82 percent of the market with cloud capacity that’s 10 times greater than all the other public cloud providers combined. I wonder how these disparate views can be possible describing the same company? And I wonder, further, whether this means Amazon actually has a cloud monopoly?


Yup, it’s a monopoly.

AWS shows Cloud is NOT a high-margin business

AWSearningsLast week Amazon.com was the first of the large cloud service companies other than Rackspace to finally break out revenue and expenses for its cloud operation. The market was cheered by news that Amazon Web Services (AWS) last quarter made an operating profit of $265 million with an operating profit margin of 19.6 percent. AWS, which many thought was running at break-even or possibly at a loss, turns out to be for Amazon a $5 billion business generating a third of the company’s total profits. That’s good, right? Not if it establishes a benchmark for typical-to-good cloud service provider performance. In fact it suggests that some companies — IBM […]