The Cloud is the most recent tech development in the IT world now a days. Hence, it should come as no surprise to anyone that Google (NASDAQ:GOOGL) is trying to make its mark in that niche. However, Google (NASDAQ:GOOGL) entered the market a few years too late. Cloud hosting is among the strongest of features for Amazon (NASDAQ:AMZN) Web Services (AWS) since 2006. Whereas Google (NASDAQ:GOOGL) has entered the market, two years too late. So now it has much to establish before it reaches to the point Amazon (NASDAQ:AMZN) stand at currently.

Both companies unveiled strong prospects for the cloud. Google (NASDAQ:GOOGL) offered several new features that came wrapped in low prices, and several other prices were drastically reduced. Amazon (NASDAQ:AMZN), on the other hand also shed light on new enhanced features of its own cloud. But surprisingly, speculators arrived at the conclusion that both Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) aren’t each other’s rivals, and in fact, they are barking up the wrong tree.

In its latest event, Google (NASDAQ:GOOGL) focused mainly on the cloud development. This event was attended by thousands of developers. Google (NASDAQ:GOOGL) has played a major role in the cloud for its bigger clients. It allows worldwide network connection and growth opportunities. Google (NASDAQ:GOOGL) also took the advantage of everyone’s presence and spoke of alternative methods besides the virtual private network to connect with Google (NASDAQ:GOOGL) Cloud, as well as of compute engines and an autoscaler.

Another aspect Google (NASDAQ:GOOGL) focused on was the huge price cuts it plans to offer in the coming years for its cloud storage to compute engine. This cut down is from as low as 10% to 79%. Immediately after this news got around, Amazon (NASDAQ:AMZN) in response also offered price cuts or alternative attractive offers. One of which is unlimited storage place for storing pictures for its prime customers. Customers are now able to save their pictures from any mobile, device or gadget immediately.

The irony of the situation is that speculators and experts in the field, consider this competition inaccurate and a waste of resources. Inaccurate, because both companies have a large share of revenue pouring in through other means. And waste, as both aren’t the market leader for cloud. It’s actually Microsoft (NASDAQ: MSFT) that slowly crept in and took top position.

As witnessed in the second quarter, Microsoft (NASDAQ:MSFT) gained cloud revenue share in the market by 164%. Whereas Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOGL) gained a meagre 49% and 47%. By the end of the year, Microsoft (NASDAQ:MSFT) being a late entrant in the cloud field, is expected to achieve $4.5 billion through its Cloud services. Whereas Amazon (NASDAQ:AMZN) is expected to produce $4.7 billion and Google (NASDAQ:GOOGL) only $1 billion, and both of them are old players in the market.

What’s making Microsoft (NASDAQ:MSFT) take the leadership spot as compared to the other two is because the latter two are in a price battle. Microsoft (NASDAQ:MSFT) is focused on growth via Software-as-a-service offerings, which include Office 365 and Dynamics CRM.

 

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