Daily Management Review

2 companies for maximum benefits from the cloud revolution


While everyone is busy arguing about data, privacy and the role of large technology companies, Microsoft and Amazon are already creating alliances, the goal of which is to freely exchange information and develop future commercial platforms.

Amazon, the largest cloud computing company in terms of sales, and Volkswagen, the largest automaker, recently announced that they are working together to create a standardized industrial cloud product for manufacturing, suppliers and system software.

Microsoft, the software giant, is also keeping up with the progress. In this regard, the company recently revealed details of its project in collaboration with Adobe and SAP called the Open Data Initiative, which should facilitate exchange of data in software networks.

Such alliances promise to have very significant consequences. The future of big business depends on software. Leading players in this market, ignoring politicians and Tim Cook, are dividing the market right now, in real time.

The news from Microsoft is fascinating thanks to the fact that the players involved in the agreement are competitors. They are all fighting for the same corporate customers. Providing possibility of free data exchange between previously isolated systems may affect uniqueness of their products, but this is only one of the points of view.

Some are convinced that with the help of this agreement, companies will earn so much money that there is no point in thinking about disadvantages associated with mutual integration of their platforms. In any case, the exchange of data between the platforms of companies promises to be an excellent function, and not an error code.

Unilever, a giant Anglo-Dutch company, can be called an ardent supporter of the Open Data Initiative. At an event organized by Adobe, the firm’s specialists demonstrated how information can be combined to reduce the number of plastic packages.

The history of cooperation between Amazon Web Services and Volkswagen has a similar scenario. The companies build a gigantic industrial network based on standard software protocols. Introduction of the AWS technology will transform the automotive company's manufacturing and logistics processes, so first 122 Volkswagen production plants worldwide will benefit. But the prospect of interconnecting factories and supply chains over time should be attractive to the entire sector.

Gartner, a global IT research and analytics company, predicts that cloud computing will grow to $ 206.2 billion in 2019, which is an increase of 17.3% over the same period last year. The fastest growing part of the market is cloud infrastructure, which is expected to reach $ 39.5 billion, which means an increase of 27.5%.

source: ft.com, bloomberg.com