Amazon.com Inc., Microsoft Corp., and Google, the three companies that control cloud computing, benefited the most from the COVID-19 pandemic. These companies seem to be prepared to increase their strength as the economy enters another turbulent phase. The three companies accounted for the majority of the spending on cloud services globally. And, as their scale of operations enables them to keep investing and draw clients seeking stability in uncertain times, these companies are expected to maintain control of the expanding market.
Stalwarts of Cloud Computing
The economics of the cloud computing industry, which necessitates substantial investment in servers and the facilities that house them, allowed the major cloud businesses, including Amazon, Google, and Microsoft, to gain control. The average cost of setting up and maintaining networks of server farms decreases as they grow, providing an advantage to the three companies. They also have the ability to create their software, processors, and other cloud-related technology. Smaller businesses in the industry are likely to find the going more difficult because consumers who are looking to consolidate their purchases are likely to stick with the major companies, which provide greater dependability, more robust cybersecurity, and a wider range of value-added features.
Cloud Computing Could Endanger Banking and Finance Sectors
Even though cloud computing improves operational resilience and data security at the company level for banking and finance industries, it could also increase the likelihood of simultaneous occurrences among numerous firms and have potentially harmful effects on the stability of the financial system. For instance, what would happen if a cloud service provider filed for bankruptcy? Besides, cyberattacks also are perilous. One example is the 2020 SolarWinds breach on Microsoft's cloud platform.
Increasing Acceptance of Cloud Computing
Businesses that are planning ahead in an increasingly digital environment use a business outcome lens when making strategic decisions, and this propels the expansion of the public cloud ecosystem. In the future, industry leaders in cloud computing such as Amazon, Google, and Microsoft will continue to assist businesses in resolving market issues of significance, including supply chain disruption, inflation, and geopolitical tension.
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