Big Bubbles Get Bigger

Big Bubbles Get Bigger

To borrow a line from one of America’s all-time great CEOs, Dr. John Malone – “Big Bubbles Get Bigger – Little Bubbles Disappear

There is less surface tension as bubbles rise thus they continue to expand. The same is true of technology companies both from an M&A perspective as well as from a competitive standpoint. Competitively, technology companies find it easier to compete for business as they scale. It is easier to get invited to bake offs once you are established in the marketplace. Take for example the old, long since outdated saying “Nobody gets fired for selecting IBM”. There comes a time when less investment is required in terms of making prospective customers aware of who you are. Within the “cloud services” space there are two companies that fit that bill: Amazon’s AWS unit and Microsoft’s Azure unit.

Large corporate customers will often have two cloud providers – typically some combination of AWS and Azure. Whether you are Disney gearing up to roll out the new DisneyPlus streaming service, or one of a number of SaaS companies, you are likely using AWS or Azure for remote servers/hosting and likely also leveraging AWS’ or Azure’s core AI capability. Outsourcing core AI services makes it cost effective for companies of all sizes to bring quality AI-based services to market.

We therefore expect AWS and Azure to continue to dominate the cloud services market and for Google, Oracle, IBM and Alibaba to continue to lag.

To learn more about the “cloud”, edge computing and AI, here is our recent podcast episode with CloudBloom founder Raghav Kamran.