Why big cloud firms are feeling the threat

The way things are, cloud computing is dominated by three major companies. Microsoft Corp, Alphabet Inc and Amazon.com Inc.

These enterprises have conjured up billions of dollars of business in recent years, with cloud computing making more for Amazon than its e-commerce business.

However, as tech changes and people have more and more access to higher levels of developing machineries, like AI and the internet, people need software that is available to them on a more personal level.


This means that people are more likely to move away from cloud computing to something called edge-computing.

People’s move to modernise like this is starting to have an impact on the big companies in the industry, who aren’t always able to provide what’s needed on an individual basis.

One problem being faced by firms like Amazon is the rise of the 5G network.Telecom analyst, Chetan Sharm, says, “Over time, cloud will be primarily used for storage and running longer computational models, while most of the processing of data and AI inference will take place at the edge,”

One reason that telecom companies may become so successful in the edge-computing market is because of their control access over high-speed telecoms networks.

What can Amazon etc. do about this?

A solution to the threat is for the big three to team up with networking firms.

“Our goal is that our partners are wildly successful,” said Sam George, a cloud executive at Microsoft. “If our partners are wildly successful, we’ll be wildly successful. There’s a lot of money to be made for partners.”

It’s estimated that by 2030, the edge-computing market will be valued at $4 trillion (£3.3 trillion).