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"cloud isn't the big market" sorry lost me there

by fierro 8y ago

dragandj 8y ago
Not a native speaker, but it seems to me that they are not saying that cloud is not a big market, but that the cloud is not THE big market, since THE big market is something else (bare metal?).
- latch 8y ago
  That's exactly what I was saying. Thank you. I think I'd agree that it's the fastest growing market. And maybe the one with the highest profit margins though.
scarface74 8y ago
I’m all in on AWS, but $6.68 billion in revenue is not huge in the grand scheme of things and if AWS has two thirds of the market, that’s still only about $10 billion. https://www.cnbc.com/2018/10/25/aws-q3-results.html https://www.cnbc.com/2018/10/25/aws-q3-results.html
latch 8y ago
I'm not sure if you're up for not being dismissive, but I'd honestly like to be corrected if I'm wrong. When I think of this I first think of Digital Realty Trust (DLR), Global Switch, China Telecom, AT&T, Equinix, NTT, Tata Communication, China Unicom, Telefonica, .... True, a lot of their customers must be cloud vendors. At one point, I'm pretty sure AWS was a customer of Equinix in some parts of the world (and they might still be). But still, who's bigger? AWS or the folks who consider AWS another (although no doubt important) client? No one is giving out detailed data, but DLR has 200+ data centers and 30+ million sqft of space. And while it is probably the biggest, they're just one of many. And I think they and their customers are mostly into more traditional hosting. Then you have more direct to consumer companies that run their own data centers. OVH, Hetzner, Softlayer, PhoenixNap, HE, Rackspace, ... Worldwide? Hundreds of these. Maybe thousands. Gartner once wrote that AWS was 10x larger than the next 14 cloud providers combined (2015). I don't know how true that was (or still is). But if "the cloud" is essentially "AWS", then it's probably safe to assume that most of DLR or OVH's or XYZ should be counted as "traditional" and not "cloud". If it's mostly just AWS + 14 other _much_ smaller companies vs thousands of companies worlwide, some of which are bigger than AWS, many of which are in the same ballpark, is the cloud even 1% of hosting market? (I worked at a large bank, we had our own datacenters (not buildings, not cages, but floors). I don't know if we actually owned everything though. If we did, this would probably add up to be quite a lot. If we didn't, then this capacity is already included in the above providers). Now, if you're talking about where the money is at, I have no preconceptions. You might be right. There's no doubt cloud margins are higher.
- naveen99 8y ago
  Until cloud egress bandwidth costs come down, it will stay that way.

"cloud isn't the big market" sorry lost me there

by fierro 8y ago

"cloud isn't the big market" sorry lost me there

Not a native speaker, but it seems to me that they are not saying that cloud is not a big market, but that the cloud is not THE big market, since THE big market is something else (bare metal?).

latch 8y ago
That's exactly what I was saying. Thank you. I think I'd agree that it's the fastest growing market. And maybe the one with the highest profit margins though.

scarface74 8y ago

I’m all in on AWS, but $6.68 billion in revenue is not huge in the grand scheme of things and if AWS has two thirds of the market, that’s still only about $10 billion. https://www.cnbc.com/2018/10/25/aws-q3-results.html https://www.cnbc.com/2018/10/25/aws-q3-results.html

latch 8y ago

I'm not sure if you're up for not being dismissive, but I'd honestly like to be corrected if I'm wrong. When I think of this I first think of Digital Realty Trust (DLR), Global Switch, China Telecom, AT&T, Equinix, NTT, Tata Communication, China Unicom, Telefonica, .... True, a lot of their customers must be cloud vendors. At one point, I'm pretty sure AWS was a customer of Equinix in some parts of the world (and they might still be). But still, who's bigger? AWS or the folks who consider AWS another (although no doubt important) client? No one is giving out detailed data, but DLR has 200+ data centers and 30+ million sqft of space. And while it is probably the biggest, they're just one of many. And I think they and their customers are mostly into more traditional hosting. Then you have more direct to consumer companies that run their own data centers. OVH, Hetzner, Softlayer, PhoenixNap, HE, Rackspace, ... Worldwide? Hundreds of these. Maybe thousands. Gartner once wrote that AWS was 10x larger than the next 14 cloud providers combined (2015). I don't know how true that was (or still is). But if "the cloud" is essentially "AWS", then it's probably safe to assume that most of DLR or OVH's or XYZ should be counted as "traditional" and not "cloud". If it's mostly just AWS + 14 other _much_ smaller companies vs thousands of companies worlwide, some of which are bigger than AWS, many of which are in the same ballpark, is the cloud even 1% of hosting market? (I worked at a large bank, we had our own datacenters (not buildings, not cages, but floors). I don't know if we actually owned everything though. If we did, this would probably add up to be quite a lot. If we didn't, then this capacity is already included in the above providers). Now, if you're talking about where the money is at, I have no preconceptions. You might be right. There's no doubt cloud margins are higher.

naveen99 8y ago
Until cloud egress bandwidth costs come down, it will stay that way.