IT INFRASTRUCTURE ESSENTIALS

CASE STUDY ANALYSIS

Cloud Wars Go Global: How Amazon, Microsoft and Alibaba
Compete in Web Services
Submitted to:
Prof. Krishna Kumar Singh
Submitted by:
Bhavya Gupta
Division A | PRN: 21030241020
ITBM 21-23
IT Infrastructure Essential Cloud Wars Go Global: Case Study PRN:21030241020

Content of the Report

Question Number Question Page Number

1 How do the four companies’ cloud 2
business strategies differ from each
other?
2 Who will be the cloud winner in the 8
battle of worldwide market share in
2025? Who will be the winner in
southeast Asia? And why?
3 If you could invest $ 1 million in each 11
of cloud business (only), how would
you allocate your investment? And
why?
4 What are the potential synergies of 12
the cloud business with each
company’s non-cloud businesses?
How do they differ?

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Q1. How do the four companies’ cloud business strategies differ from each other?
A cloud strategy is an outline for the role of cloud in an organization, not a plan to move
everything to the cloud. Businesses with such a plan have a more coherent approach to cloud
usage, optimizing resources and costs.
Amazon Web Service
Amazon is one of the most important e-commerce platforms serving business homeowners
and customers to accomplish their goals. Amazon internet services were ready to facilitate
multiple firms, and people relish affordable cloud computing services. AWS has options like
public knowledge storage, non-public data storage, dynamic web hosting, web app hosting,
VPN gateway, multimedia system streaming, load equalisation and automotive vehicle
Scaling; these are the features with that AWS helps the users and customers
Amazon Web Service Technology
AWS started with Infrastructure as a Service (IaaS) and later swollen into many different
technologies like the Internet of Things (IoT), computing (AI), increased Reality (AR) and
knowledge analytics as well. The preceding functionalities run on these technological
advances created by AWS. The AWS growth is well on the far side of cloud reason and storage.
Launching instances supported ARM second-generation graviton processors; the trade may
impart AWS if ARM processors prove to be the standard used ones compared to Intel. With
the incorporation of Machine Learning and computing services, AWS, with its Sagemaker
platform launched in 2017, can create, train and deploy machine-learning models within the
cloud. On another side of partnership with Verizon, a transnational telecommunications
conglomerate, AWS will probably be a test suit to manoeuvre its reason nodes towards the
edge.

Delivering Values
AWS is the backbone of Amazon’s Architecture; they power the shoppers and from its
assistant Alexa. AWS generates most of its revenue through AWS, currently $ 14.81 billion
bucks that are 37% compared to the previous year. Since Amazon has been the primary player
during this segment, they need to be broached into the market first and have established a

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considerable shopper base. They follow the ancient top-down approach—options lined by
AWS.
This diagram shows the business strategy and cycle model of amazon AWS, how they
facilitate and therefore the method for client interaction.

Alibaba cloud
Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, revamped
its hybrid cloud strategy to focus on bringing compatibility, security, compliance, scalability
and reliability with its newly upgraded product offerings and its Hybrid Cloud Partner
Program. To help businesses, especially small medium enterprises (SMEs) transform digitally
and take advantage of public cloud’s highly elastic, scalable and available characteristics, new
appliances are also launched to support enterprises private cloud utilization needs. Cloud
computing is important business for Alibaba Group; today Alibaba Cloud stands as one of the
world’s top three IaaS providers, according to Gartner, and the largest provider of public cloud
services in China.
Alibaba Cloud Technology
Alibaba Cloud, the virtual generation and intelligence spine of Alibaba Group, remodelled its
hybrid cloud method to bring compatibility, security, compliance, scalability and reliability
with its newly upgraded product services and its Hybrid Cloud Partner Program. To assist
businesses, particularly small-medium companies (SMEs), to remodel digitally and take
benefit of the public cloud’s fantastically elastic, scalable, and to be had characteristics, new
home equipment also is released to help companies personal cloud usage needs. Cloud
computing is a crucial enterprise for Alibaba Group; nowadays, Alibaba Cloud stands as one
of the world’s pinnacle 3 IaaS providers, in keeping with Gartner, and the biggest issuer of
public cloud offerings in China.

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Delivering Values
Today, Alibaba Cloud now no longer handiest gives infrastructural help to the complete
Alibaba financial system however has additionally advanced verified technology to empower
tens of thousands and thousands of clients in China and worldwide, drastically decreasing
cloud adoption barriers, making sure inclusive access, and allowing collaboration at some
stage in the ecosystem. To empower all individuals within the Ali eco device to enhance the
incorporated improvement of technology, services, and products on their platform. Alibaba
gives virtual marketplaces for traders and consumers. Alibaba's most significant enterprise is
its e-trade operations; however, cloud computing is developing the fastest. Alibaba pursuits
to be a frontrunner withinside the improvement of the infrastructure of trade.

Microsoft Azure
Microsoft enterprise clouds and our current statement illustrate Microsoft's long-time period
dedication to industries and funding in powering virtual transformation for clients and
partners, on their phrases and unique to their desires.
The Microsoft enterprise clouds included new and launched enterprise abilities. They had
been created with the aid of using bringing collectively not unusual place enterprise records
models, cross-cloud connectors, workflows, software programming interfaces (APIs), and
enterprise-unique additives and requirements, with the breadth of Microsoft's cloud services,
which includes Microsoft 365 and Teams, Azure, Microsoft Power Platform, Dynamics 365
and safety answers.
Microsoft's enterprise clouds are designed to:

• Deliver greater fee in much less time, permitting companies to undertake fast answers
constructed for his or her enterprise or increase present ones.
• Break down records silos, assisting companies to take a records-first technique with a
not unusual place records version that unifies records at the same time as adhering to
enterprise compliance requirements.
• Maximize the effect of everybody in a company with productive workflows and
enterprise programs that offer the proper records at the proper time.

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• Use modular answers with integrated enterprise requirements that increase a

company's cutting-edge investments and are extensible as enterprise desires evolve
and grow.
In this today's release, that is a part of what Microsoft is asking Hybrid 2.0. The organization
is a substitute positioning itself because of the orchestrator of hybrid answers. This will allow
the organization to maintain contracts with groups already operating with one in all
Microsoft's competition which is a particular want for which it may deliver a solution.
Providing the connective tissue among diverse cloud computing sources could make
Microsoft a middle cloud companion and win incremental sales that would have long passed
to competition in any other case.
Microsoft Azure Technology
Microsoft Azure is a diagnosed chief in each personal and public cloud. It is an open cloud,
supplying entry to over two hundred preconfigured offerings and the selection to apply the
technology need and feature already invested in. Azure presents a completely incorporated
set of IaaS and PaaS capabilities, together with technology like AI and system learning,
analytics, DevOps, net of factors and security, all of which supplement and combine with on-
premises systems.
The pass alerts a shift in Microsoft's cloud approach because it could upon its objectives to
grow into a sole issuer and push into hybrid solutions. Previously, Microsoft's hybrid cloud
approach changed into centred on promoting its Azure Stack to be run on a choice of licensed
servers.

Delivering Values
To supply personalized, rich, linked reports on trips that clients choose. To preserve up
together along with fast-transferring clients, successfully taking part to assume and meet
their demands. To grow, the waft of records throughout whole enterprise operations,
manipulate resources and preserve enterprise strategies synchronized throughout all
boundaries. To make the attain of enterprise more prominent, the use of virtual channels,

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assume patron needs, recognize how merchandise is used, and quickly expand and enhance
merchandise and services.

Google Cloud Platform

Google Cloud has emerged as a feasible first-tier cloud dealer with sturdy services in all three
cloud categories: IaaS, PaaS and SaaS. Its cloud offerings emphasize portability and security,
and Google has realigned its efforts around corporations and enterprise verticals.
Google's cloud computing approach turned into directed towards clients like itself -- superior
builders that desired to construct cloud local programs and offerings. It failed to goal
mainstream corporations and small companies dealing with heterogeneous infrastructure,
legacy software, or IT staffs that determined cloud computing unexpected and threatening.
Google Cloud turned into technically state-of-the-art and stylish, however much less bendy
than competing offers. It had weaker documentation and resisted efforts to combine with
present IT systems. On the pinnacle of those issues, Google Cloud turned into a gambling
catch-up.
Google's cloud computing approach on company programs, workload migrations and
alertness modernization. It tried to execute that approach thru use instances and offerings
such as:

• Hybrid cloud workload migrations the usage of Anthos or VMware.

• Modern containerized and serverless programs.
• Cloud-primarily based information structures include storage, databases, information
warehouses, information extraction transformation and analysis, and AI and ML
programs.
Google Cloud Platform Technology
Google Cloud Platform offerings are robust. One manner to navigate them is to recollect
which answers are to be had primarily based totally on your number one computing needs:
infrastructure as a carrier (IaaS), platform as a carrier (PaaS), and software-as-a-carrier (SaaS).
IaaS permits IT to run digital machines while not spending money on or controlling this
computing infrastructure themselves. Often IT will choose an IaaS answer whilst the workload
is temporary, experimental, or challenge to surprising changes (e.g. sandbox projects). PaaS
is the following step, constructing the IaaS model. Customers choose all the blessings of IaaS,
plus they get underlying infrastructures – like running structures and middleware. Their

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dealer hosts and manages all of those elements. SaaS is going one extra step – the whole lot
is to be had thru the web: the issuer hosts manage and gives you the complete infrastructure
consisting of applications. Users log in to get admission to the sources the particular answer
gives you, e.g. backup and healing tools.
Another manner to navigate Google Cloud Platform is with the aid of using carrier-presenting
type. Core carrier classes include:

• Compute
• Networking
• Storage and Databases
• Artificial Intelligence (AI) / Machine Learning (ML)
• Big Data
• Identity and Security
• Management Tools

Delivering Values
They are simplifying and clarifying purchaser touchpoints. The agency centred on streamlining
the method of doing commercial enterprise with Google Cloud by introducing new enterprise-
pleasant pricing and subscription models, simplifying agreement phrases and conditions, and
including compliance certifications. The remodelled agreement phrases make it less
complicated to buy a couple of merchandise from Google Cloud and limit the quantity of time
it takes to get an agreement authorized via way of means of each party. It additionally
introduced new gear for purchaser care and service. Cloud computing approach improvement
and migration frequently require the help of a skilled channel accomplice. To win extra deals,
Google Cloud has multiplied the income and go-to-marketplace organization. A new
accomplice enablement application consists of well-described tiers, certifications and a
brand-new accomplice portal.

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Q2. Who will be the cloud winner in the battle of worldwide market share in 2025? Who
will be the winner in southeast Asia? And why?
Four groups very own 67% of the global's $one hundred thirty billion cloud marketplaces.
Amazon Web Services is leading the per cent using a considerable margin, which enjoys a
whopping 32% marketplace percentage towards the competition. This is observed with using
the 20% percentage loved with the aid of using Microsoft's Azure infrastructure. So, those
groups on their own make up 52% of the marketplace. Amazon Web Services (AWS), the cloud
platform provided with the aid of using Amazon.com Inc (AMZN), has emerged as a massive
issue of the e-trade massive's enterprise portfolio. In the second sector of 2021, AWS
introduced a record $14.eight billion in internet sales, accounting for simply over 13% of
Amazon's general internet sales. Having grown progressively withinside the 30% variety the
beyond few quarters, AWS is a pacesetter to different cloud computing systems, including
competitor Microsoft Azure.
AWS is so huge and gift withinside the computing global that it is outpaced its competitors.
As of the primary sector of 2021, one unbiased analyst reviews AWS has over a 3rd of the
marketplace at 32.4%, with Azure following at the back of 20%, and Google Cloud at 9%.
AWS has eighty-one availability zones wherein its servers are located. These serviced areas
are divided to permit customers to set geographical limits on their offerings (in the event that
they so choose). However, they also offer protection by using diversifying the bodily places
wherein records are held. Overall, AWS spans 245 international locations and territories, with
time and the shift to Cloud Platform this may bring about enhancing the factors for AWS to
tackle as an international leader; with Covid-19 Pandemic and the backlash towards China
and Chinese groups has additionally given a bonus to AWS as it will assist in weakening the
Chinese economic strength.
Amazon Web Services is a coin’s cow for Amazon. The offerings shake up the computing global
withinside the equal manner that Amazon is converting the international retail area. By

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pricing its cloud merchandise extraordinarily cheaply, Amazon can offer low cost and scalable
offerings to anybody from the most modern start-as much as a Fortune 500 enterprise.

Hence with the aid of 2025, Amazon will be the winner withinside the war of world
marketplace percentage of the cloud industry.
They are talking approximately who might be the winner withinside Southeast Asia withinside
the cloud industry. The Association of Southeast Asian Nations, wherein those international
locations have lifestyle and ventures just like that of the only in China in phrases of the SMEs
and referring to the equal it is miles pretty possible that they comply with and undertake that
equal cloud motion for smooth execution.
In Southeast Asia, the cloud computing marketplace sales are envisioned to attain US$40.32
billion with the aid of using 2025 due to an accelerated call for cloud computing amongst
small and medium-sized enterprises (SMEs).
Increasing net penetration is probable to the resource using clever gadgets in this region. The
effect of massive records, IoT, synthetic intelligence, and digital fact could have a chief effect
on the marketplace boom in different southeast international locations after 2020. Most
colocation companies are worried about creating hyper-scale records centres to the collocate
area to cloud provider companies. In Southeast Asia, Singapore is a mature marketplace that
money is owed for, observed with using Indonesia, Malaysia, Thailand, and Vietnam.
Singapore is the principal sales generator withinside the APAC region.
According to Q2 figures from Synergy Research Group, Amazon Web Services (AWS) and
Alibaba are the main Asia-Pacific (APAC) cloud marketplace.

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Based on quarterly sales, AWS leads the per cent in one of the 5 APAC sub-areas, whilst
Alibaba leads in China and is likewise has a sturdy presence withinside the relaxation of East
Asia, South & Southeast Asia and Oceania.
According to the current declaration, with the aid of using Alibaba, they may be making plans
to launch records centres within the ASEAN international locations.
In ASEAN, after Alibaba, the following five cloud companies are all neighbourhood groups. As
the most crucial marketplace withinside the region, China has helped Alibaba Cloud to grow,
pouring US$1 billion right into a venture that it says is aimed toward assisting neighbourhood
expertise and start-ups. The initiative, named Project Asia Forward, will seek to upskill
neighbourhood developers, small-to-medium-sized groups and join organizations with
project capital and opportunities, the enterprise stated on Tuesday at its Alibaba Cloud
Summit 2021. For Southeast Asian international locations, they have plenty of diversification,
and subsequently, localization is needed. From the diagram beneath, we will see the
dominance of Alibaba Cloud withinside the South East Asian region dominance of Alibaba
Cloud withinside the South East Asian region.

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Q3. If you could invest $ 1 million in each of cloud business (only), how would you allocate
your investment? And why?
Cloud stocks typically fall into the growth stocks category. This means valuation metrics are
of limited use when finding stocks to buy. More important are revenue growth, margin
growth and the potential market size. The following are a few of the factors to consider when
stock picking in the cloud space:

• Price to sales ratio

the price to sales ratio to compare one stock with another. While the price-to-sales
ratio for the broader stock market is around 1.5, for cloud stocks it is typically higher
than 5, and can be as high as 50. The higher the ratio the more certain you need to be
that revenue growth will continue. Alternatively, if margins are expanding rapidly, a
high price to sales ratio may be sustainable.
• The rule of 40
A company’s long-term earnings potential depends on revenue growth and margin
expansion. The rule of 40 has emerged as a popular way to identify cloud stocks with
good prospects. add the annual revenue growth rate to the net profit margin. If the
result is above 40, the stock is worth considering.
• Market Trend and Momentum
Considering the trend and momentum of a stock’s price. When growth stocks trade
on high valuations, the potential for large declines is high. To reduce risk, most
investors try to stick with stocks in a clear uptrend and avoid stocks that fall below
their 200-day moving average. long term price targets depend on the potential size of
a market, and a company’s share of that market by finding the potential size of a new
market.
Below is the analysis of the four companies based on price to sales, the rule of 40 and market
trend and momentum.

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Keeping the above analysis in mind I would invest all of my $50 thousand in the amazon stocks
in one go as amazon has been rising constantly and if the price becomes too high, for
$50thousand I would be getting a smaller number of units hence, I would buy them and let
my investment be for long term as it will yield good returns and technology and changes take
time to mature. Eyeing the shift and performance of amazon and the previous market trends
it is bound to soar up and give good returns.
Coming to Alibaba I will invest $ 30 thousand over two windows of investment in break of 15
thousand to make sure that the stock is performing good from time to time as the market
saturation is a little less when we talk it being global and as it is based out of China there are
political issues lingering over the same hence it is little risky investment, but over a long run
even this will give good returns not as big as amazon in terms of the number but it will be
comparatively higher and they have good chance of performing well because of good Price to
Sales Ratio.
Microsoft Azure is not a great choice yet I would invest $5 thousand because the market trend
shows that it’s performing quite in a particular range and hasn’t shown as big return on
investment because of the horizontal diversified business line.
For Google Cloud Platform, I would invest $15 thousand because they bring new innovations
in the industry and now are also shifting to the customer and client centric strategies which
will help in getting good return on investment over a period of time.

Q4. What are the potential synergies of the cloud business with each company’s non-cloud
businesses? How do they differ?
Regarding AWS, they may work hand and glove with another Amazon' businesses by
continued to support them, rising correct forecasts to make higher decisions, consolidating
the digital and offline elements to cover clients' needs on each fields, offers a sleek
experience, helping them, and staying in continuous interaction with them at each consumer
touchpoint. By seizure these services, partnerships, and synergies, they'll be ready to better
predict demand and consumers' requirements so as to raised serve them, similarly as produce
a distinction and develop a loyalty and long connection, which is able to offer them with
considerably more revenue (because it's more valuable and tough keeping a shopper than
obtaining a brand new one to shop for your product for the primary time).
Now, once it involves Alibaba and its synergies, we have a tendency to discovered them most
notably in Alibaba' own e-commerce ecosystem, that provides cloud services to different
firms. As we will see, this is often quite similar to what Amazon does, because the 2 websites
are terribly similar.
Microsoft Azure might actually enjoy their market position as a result of services similar to
Windows or Office. as a result of Microsoft creates and manufactures gadgets, it's quite
straightforward to integrate their cloud service onto these PCs and numerous units. They
obtained company sales of their servers by that specialize in trade verticals such as
healthcare, retail, and finance.

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Beginning with Google, synergies are going to be created between their own services
Associate in merchandise (such as smartphones and application program services...). this can
be accomplished by the creation of an integrated network between it and therefore the
Google Cloud System. this is able to enable the firm to make a gentle flow of knowledge across
all of its sections, leading to nice communication, improved productivity, and, as a result,
improved client interaction (making it seamless).

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