Google Microsoft Amazon invested $31.5 billion last year, and it is all for cloud computing. According to foreign media Beijing time on April 8, as oil and gas companies invest billions of dollars to find new energy reserves, large technology companies are also The world is investing heavily in sophisticated computers to run the business of every startup and corporate giant in the cloud.
Amazon has increased its bets this week and announced plans to build a data center cluster in Stockholm. Amazon is involved in a high-risk competition that dominates the cloud computing market, which is the company's latest move. The cloud computing market is expected to reach hundreds of billions of dollars.
Amazon and its main rivals, Microsoft and Google, have the largest investments in so-called hyperscale computing. This ultra-large-scale computing provides data computing power that can be rapidly expanded in real time as needed. For example, when NFL fans flock to a sports site before the start of the game, hyperscale computing can improve the site's affordable access.
Microsoft's data center in Washington
According to company documents, Amazon, Microsoft and Google spent a total of $31.54 billion on capital expenditures and capital leases last year, up 22% year-on-year.
Of course, these companies don't spend every penny on data centers that provide infrastructure as a service, but every company has cloud computing as an important investment area. Amazon is the leader in the cloud computing market. The company did not disclose the cost of establishing a data center cluster in Stockholm. The industry called this data center group a "Region." Analysts say Amazon's cost of building a region is in the hundreds of millions of dollars.
Great investment
Deutsche Bank Securities analyst Karl Keirstead said that such large-scale investments by companies such as Amazon have created obstacles for other rivals, which will cost tens of billions of dollars to catch up with Amazon, Microsoft and Google. Some computing power.
Amazon, Google and Microsoft invest in computing
But there is an opponent who is not afraid, it is Oracle. Last summer, Oracle released a cloud infrastructure service that allegedly challenged Amazon's dominance. However, compared to Amazon, Microsoft and Google's investment in cloud infrastructure, Oracle's investment can be described as awkward. Oracle’s capital expenditures for the fourth quarter of February were $1.7 billion, including data center construction.
Some companies that entered the cloud computing market early have adjusted their strategies. 2015. Hewlett-Packard closed the Helion public cloud service because it is difficult to generate revenue. IBM acquired the cloud computing company SoftLayerTechnologies in 2013, in part to better compete with Amazon AWS services. Now, IBM sells infrastructure services, but pays more attention to high-margin services such as data analytics. IBM’s capital expenditure last year was $3.73 billion.
However, the speed at which large cloud infrastructure providers open regions is likely to not slow down. In addition to the region to be opened in Stockholm next year, Amazon has announced plans to open regions in Paris and Ningxia in the coming months. Microsoft soon added regions in France, Texas and Arizona. Google announced last month that it plans to open regions in California, Canada and the Netherlands.
The capital needed to build a data center around the world is huge, but companies rarely disclose this expenditure in detail. Last November, at the Amazon conference in Las Vegas, Amazon AWS Vice President James Hamilton gave some hints. The AWS region contains two to five "available zones", and some have 300,000 custom servers in the Availability Zone.
Urs Hölzle, senior vice president of Google's technology infrastructure, said Google's regional cost is between $300 million and $600 million, not including maintenance costs, electricity bills, hardware upgrades, and other data. The high cost of operating the center.
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