Cloudy with a chance of profit: Cloud drives value for tech giants like Amazon and Microsoft

publish 2022-04-27,browse 6
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Brian Nowak, executive director at Morgan Stanley, talks about growth in the cloud market at the 2017 GeekWire Cloud Tech Summit. (GeekWire Photo / Kevin Lisota)Three hundred billion dollars and growing: that is the size of the cloud market in front of Amazon, Microsoft and Google.At the GeekWire Cloud Tech Summit on Wednesday, Morgan Stanley Executive Director Brian Nowak said the market is growing rapidly, and it will be close to a $350 billion market by 2020. Cloud companies reported more than $50 billion in revenue in 2016, and Nowak expects that number to more than triple to $153 billion by 2020.Nowak showed in his presentation the importance of the cloud to the futures of some of the world’s largest tech companies. He displayed two situations, one where cloud usage continues to grow and accelerate, and another where it slows down. For Amazon, under the bullish scenario, the cloud makes up just over half of the company’s market cap, and under the slower scenario, it still accounts for 35 percent of the business.

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