The Amazon Q3 financial results show the big portion of revenue in “Other” category. IBM takes it as an opportunity to stake its claim of being the leader in the cloud computing industry.
Amazon cloud computing service provider company has announced its financial results for the fourth quarter of past fiscal year 2013. According to those results, the company earned a revenue of $1.234 billion in the third quarter, which includes a huge portion under the category of “Others”. This category includes AWS services of the company too.
These results provided a good pitch for the IBM company to stake its claim to become the leading company in the domain of cloud computing services. IBM pitched itself as the leader in the marketplace through a press release statement on Friday after analyzing the Amazon’s financial results.
According to the press release statement of the Big Blue Company, “Amazon’s full-year “other” North America revenue, which includes AWS was $3.9 billion, while IBM’s comparable number was $4.4 billion,” “This is the reason that it (IBM) leads the leagues in cloud since it invested on more than $2 billion to purchase the SoftLayer company recently” added the press release.
It was further elaborated in the official statement that “By definition, even if EVERY penny of ‘other’ revenue was in Amazon Web Services — and it obviously isn’t — IBM sold at least $0.5 billion more in cloud than AMZ in 2014, and IBM also grew at a faster rate (69 percent for FY 2013). That’s on $4.4 billion in cloud revenue for the year with $1.7 billion in cloud/SaaS services for IBM.”
It is very imperative that Amazon deals in the public cloud offering especially for third party softwares and platforms – while on the other hand, IBM is stronger on the private cloud side and it has a huge chunk of revenue coming from SaaS services. Software and the hardware services are the major contributor of the IBM revenue – $1.7 billion from SaaS and $2.7 billion from software, hardware and services.
It is fact that IBM will lead in the domain of cloud computing industry if we put SaaS, private cloud, public cloud, and application into one bucket of cloud services. Many services hosted in the Amazon cloud belong to third party software and applications, that does not count for Amazon revenue.