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Updated Cloud Thoughts

  • Oppenheimer & Co. Inc.
  • November 26, 2019

Still in Early Innings of Cloud Adoption; Microsoft Well-Positioned

Oppenheimer Analysts believe we are still in the early innings of cloud adoption, dominated by Amazon's AWS and Microsoft, with Google in a distant third. Combined revenue of the three is $55B growing at 50%, with market share split 64%, 28%, 8%, respectively.

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Pricing for cloud services has held up well, for now, on strong demand, but margins ticked down for AWS in the 3rd Quarter of 2019, as it ramps up support for enterprise sales/migration to the cloud. Microsoft recently announced Azure Arc, which could cement its dominance in the network edge (what we call the fog) and tech partnerships as it grows data lakes/Artificial Intelligence.

This report also contains our Analysts' detailed cloud models and top ten questions facing the industry.

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