April 11, 2017
The high-stakes, costly race is on to build a global footprint of hyperscale computers that ramp up quickly to handle website demand spikes, such as before the start a big sporting event. Companies are shifting from their own servers to the cloud, and that’s increasingly being concentrated in the hands of a few companies.
Last year, Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s Google invested a combined $31.5 billion in capital expenditures and capital leases involving data centers. That’s an increase of 22% over the previous year, and it’s virtually cemented their dominant positions.
Not all of the spending is on data centers, but it is a major area of investment in the delivery of infrastructure as a service. The big cloud-infrastructure providers are seeking to capture even more of the $500-billion businesses spent last year on computing, storage, networking, and database technology.
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