Research Advancements: The cloud computing tail keeps on wagging the big tech dogs

Cloud computing may still be a small part of overall information technology spending, but don’t tell that to investors in Inc., Google Inc. owner Alphabet Inc. and Microsoft Corp. The technology giants derive most of their revenue respectively from e-commerce, advertising and software, but their latest quarterly reports out today shone a light once again on one of the tech industry’s driving forces, as investors pushed their shares higher based more on their cloud operations than their core businesses.

Amazon, whose Amazon Web Services Inc. unit is by far the largest provider of cloud services, reported a third-quarter net profit of $256 million, or 52 cents per share, about the same as a year ago. Analysts on average were expecting a profit of just 3 cents, according to Thomson Reuters. Overall revenue rose 34 percent from last year, to $43.7 billion. That included $1.3 billion from Whole Foods Market, which Amazon bought in late August. Without that and favorable foreign exchange rates, revenue would have risen 29 percent.

Related Article: The cloud computing tail keeps on wagging the big tech dogs

Source:         siliconangle, Oct 26th, 2017