Cloud Computing Update: Broadcom-VMware, Azure-AWS, Salesforce, Oracle
We cover M&A, large and small, and present some intriguing numbers around cloud market share and forecasts.
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Channel partners will have to wait a while longer to find out how the Broadcom-VMware combination will affect them.
Last week, VMware noted in a filing with the Securities and Exchange Commission that the deal now will not close until at least May 26. That marks exactly one year from the date the companies announced their $61 billion transaction.
The merger has encountered regulatory obstacles, mainly from the European Union’s antitrust arm, the European Commission. In fact, the European Commission earlier this month stopped the clock on its investigation into Broadcom-VMware. Authorities were waiting on Broadcom to supply missing information.
Broadcom apparently did so and, according to various media reports, the European Commission will decide by June 7 whether to approve or block the pending merger. It’s not clear how that activity will mesh with the intended May 26 closing date.
The Broadcom-VMware merger represents the second-largest tech deal of 2022, followed only by Microsoft’s $68.7 billion purchase of Activision Blizzard.
DoIT International has acquired part of Incentro.
DoIT, the Santa Clara, Calif.-based managed service provider that ranked No. 17 on the 2022 MSP 501 list, snapped up Incentro’s Google Cloud reseller business. DoIT specializes in Amazon Web Services, Microsoft Azure and Google Cloud; purchasing a big piece of Netherlands-headquartered professional services provider Incentro gives DoIT more Google Cloud heft and greater international footprint.
Incentro’s digital solutions group will join DoIT’s teams overseeing cloud operations, migration and financial operations, and machine learning. DoIT recently started doing business in the Benelux region (Belgium, the Netherlands and Luxembourg) where Incentro has worked for more than 20 years.
“DoiT and Incentro embody many of the same core values — creating a future-proof foundation for digital native businesses,” said Mathijs Kreugel, an Incentro board member. “This strategic transaction will benefit customers across the Benelux region as our combined offerings complement each other’s specialties, enabling our customers to thrive and grow.”
Yoav Toussia-Cohen, CEO of DoiT International, agreed.
“By merging the strength of Incentro’s digital solutions with DoiT’s intelligent technology and cloud expertise, we are building on our vision and commitment to be a valuable partner for our customers in the region and beyond,” Toussia-Cohen said.
The privately held companies did not disclose terms of the transaction.
Microsoft Azure continues to gain ground on AWS, the world’s largest public cloud computing provider.
Synergy Research Group recently debuted data indicating that Azure now holds 23% market share worldwide. That compares to an average of 21% across the four quarters preceding the fourth quarter of 2022. AWS, meanwhile, has remained within its market share band of 32-34%, analysts found.
Google Cloud still ranks as the smallest of the Big 3 hyperscalers. Its market share stands at 11%, according to Synergy, although that marks a percentage point higher than a year ago.
Globally, Azure, AWS and Google claim 66% of the public cloud computing market, up from 63% a year ago.
A couple of research firms over the past couple years have pegged Azure as either larger than AWS or on the verge of rapidly overtaking the giant.
The conundrum continues: Business leaders know they need to put their organizations’ data to use for improving productivity, customer satisfaction and so on, but they just aren’t doing it.
That’s according to a new report, Untapped Data Research, from Salesforce, released on Feb. 22.
The conversation around data has gone on for almost a decade. It’s not new. But apparently the ability to use one’s organization’s data to make better strategic decisions remains out of reach for a number of business leaders. Salesforce surveyed almost 10,000 of those professionals to reach its latest conclusions. The cloud-based customer relationship management behemoth says respondents aren’t using data for decisions or to navigate an uncertain economy because they can’t make sense of it.
Despite that, 80% of the people Salesforce surveyed said data is critical to the decisions their organizations make.
But more than two-thirds (67%) aren’t using data to adjust pricing amid inflation, or to choose new markets for product or service launches. Furthermore, 79% of respondents are not using data to inform their organizations’ diversity, equity and inclusion policies. Only 17% look to data to guide their climate-related choices.
Perhaps managed service providers and consultancies need to do more on the data front for customers?
Multicloud represents the future of cloud computing.
That’s according to a new report from 451 Research, commissioned by Oracle Cloud Infrastructure.
“The ‘one-stop-shop’ mentality has died when it comes to the cloud,” said Melanie Posey, research director of cloud and managed services transformation at 451 Research. “Instead, multicloud is the reality of enterprise technology environments as these organizations seek to get the right mix of solutions and capabilities they need to operate effectively.”
In terms of stats, here are some key takeaways from the report:
• Almost all (98%) of enterprises surveyed use or plan to use at least two cloud infrastructure providers.
• Nearly one-third (31%) of respondents use four or more cloud environments.
• Almost all (96%) of respondents use or plan to use at least two cloud application providers (software as a service).
• Almost half (45%) use SaaS from five or more providers.
• The top two reasons to use multicloud are data sovereignty (41%) and cost optimization (40%).
• Business agility and innovation came in at 30%.
“Multicloud is here to stay,” Posey said.
Multicloud represents the future of cloud computing.
That’s according to a new report from 451 Research, commissioned by Oracle Cloud Infrastructure.
“The ‘one-stop-shop’ mentality has died when it comes to the cloud,” said Melanie Posey, research director of cloud and managed services transformation at 451 Research. “Instead, multicloud is the reality of enterprise technology environments as these organizations seek to get the right mix of solutions and capabilities they need to operate effectively.”
In terms of stats, here are some key takeaways from the report:
• Almost all (98%) of enterprises surveyed use or plan to use at least two cloud infrastructure providers.
• Nearly one-third (31%) of respondents use four or more cloud environments.
• Almost all (96%) of respondents use or plan to use at least two cloud application providers (software as a service).
• Almost half (45%) use SaaS from five or more providers.
• The top two reasons to use multicloud are data sovereignty (41%) and cost optimization (40%).
• Business agility and innovation came in at 30%.
“Multicloud is here to stay,” Posey said.
Cloud computing news isn’t in short supply this week, but it has slowed down somewhat. Maybe it’s because the flood of layoffs has tapered off? With a little more breathing room in play, we are taking the time to examine some tidbits that also deserve attention, starting with an update on the pending Broadcom-VMware merger. We then move on to managed service provider M&A — find out who MSP 501er DoIT International just bought and why.
After that, we look at some cloud statistics. Synergy Research Group has new numbers that show Microsoft Azure gaining ground on behemoth Amazon Web Services. And Salesforce has new data on, well, data, and what businesses are failing to do with it.
Finally, Oracle Cloud, via 451 Research, is making bold (that’s not to say inaccurate!) statements about the future of cloud computing. Hint: It’s all about mixing environments.
Check out our latest cloud computing news update by checking out the slideshow above.
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