Latest news with #IaaS
Al Bawaba
4 days ago
- Business
- Al Bawaba
Gartner Says Worldwide IaaS Public Cloud Services Market Grew 22.5% in 2024
The worldwide infrastructure as a service (IaaS) market grew 22.5% in 2024, reaching $171.8 billion, according to Gartner, Inc. a business and technology insights company. Amazon retained the No. 1 position in the IaaS market in 2024, followed by Microsoft, Google, Alibaba and Take:'As enterprises continue to seek greater flexibility, improved resilience and optimized performance, there is sustained demand for cloud migration and modernization services,' said Hardeep Singh, Principal Analyst at Gartner. 'Enterprises want to transform their IT infrastructure by leveraging multiple platforms for AI and prioritizing modernization by migrating existing workloads to the cloud. They are also deploying cloud-native applications across diverse environments.' This trend is further fueled by the demand for flexibility with data residency and sovereignty, as enterprises seek to gradually transition to the cloud while keeping control over their data and operations.'Cloud providers are investing heavily in AI infrastructure and capabilities to become leaders in the rapidly evolving AI-optimized IaaS market. They expect that AI will become a much larger revenue contributor in the future, even though it currently remains a relatively small slice of their overall revenue within the IaaS space,' said Singh. 'Emerging AI-optimized IaaS offerings from nonhyperscalers, or GPU as a service (GPUaaS) providers, though still nascent, have also played a key role in addressing immediate capacity requirements by offering flexible, high-performance compute on demand.'In 2024, the top five IaaS providers accounted for 82.1% of the market. Amazon continued to lead the worldwide IaaS market with revenue of 64.8 billion and 37.7% market share, followed by Microsoft with 23.9% market share (see Table 1). Google, Alibaba Group, and Huawei maintained their respective positions clients can read more in Market Share: Enterprise Public Cloud Services, Worldwide, 2024 and Market Share Analysis: Infrastructure as a Service, Worldwide, 2024. Learn how to maximize the benefits of cloud computing in the complimentary Gartner ebook Devising an Effective Cloud Strategy.
Yahoo
13-07-2025
- Business
- Yahoo
Veteran analyst issues eye-popping Microsoft stock price target
Veteran analyst issues eye-popping Microsoft stock price target originally appeared on TheStreet. Microsoft's () has been a dark horse this year, as its cloud and AI engines continue to fire. Be it Azure's dominance, Copilot's spread, or its massive data center bets, Microsoft is marching forward with considerable aplomb. 💵💰💰💵 Despite the uncertainty, it has kept pushing the pace, posting strong guidance, winning fresh analyst upgrades, and firmly holding its spot at the top of the tech hierarchy. All things point to more upside for Microsoft stock, and that's exactly why a fresh Wall Street upgrade just dropped jaws, setting a price target that's adding another massive chunk to its already giant market cap. Microsoft's Azure cloud has been doing a lot of heavy lifting, and the numbers prove it. For context, in the third quarter of fiscal 2025, Microsoft's Intelligent Cloud sales hit $26.8 billion, up 21% year-over-year. Strip out forex-related swings, and that growth jumps to 22%. At the core of it all is Microsoft's dependable Azure and its other cloud services, which posted an incredible 35% quarterly growth in constant currency. Nearly 50% of that jump came directly from AI workloads. Add it all up, and Microsoft's total cloud sales have soared to $42.4 billion, marking a 20% robust infrastructure-as-a-service (IaaS) demand is pushing the company's capacity to the limit in key regions, indicative of Azure's infrastructure muscle. Currently, Azure commands roughly 23% to 25% of the global cloud market share. That's closing in on Amazon Web Services' 29%, while Google Cloud trails behind at around 12%. Microsoft's commercial bookings are also through the roof, up 67% year-over-year to roughly $300 billion in locked-in contracts offering some serious revenue visibility. Management's outlook is just as strong. For Q4, it's targeting Intelligent Cloud sales of $28.75 billion to $29.05 billion, with Azure growth pinned at roughly 34% to 35%. Demand hasn't shown signs of much easing, even as supply constraints bite. More Tech Stock News: TikTok's next move has Google and Meta sweating bullets Cathie Wood shells out $13.9 million for one high-stakes biotech stock Apple's quiet shake-up could redefine its future Profitability is surging, too. Last quarter's earnings per share came in at $3.46, blowing past Wall Street's expectations and reflecting healthier margins from Azure's scale. Needless to say, it has been nothing but success since CEO Satya Nadella's pivot to the cloud in 2014, with Microsoft pouring $80 billion into data-center buildout. Also, its tight partnership with OpenAI and its investments in Copilot AI are starting to pay off. Piper Sandler just bet big on Microsoft's cloud momentum, and its fresh $600 price target is a testament to that. The research firm bumped its target from $475 to $600 on July 10, a massive jump from Microsoft stock's current price of around $504.80, flirting with the $4 trillion club. Piper Sandler touts Microsoft's growing grip on the cloud, especially in IaaS, pointing to new survey data that shows Azure spending intentions hitting record highs. For the first time, over 80% of chief information officers told Piper they are looking to raise spending on Azure. That cements Microsoft as the leading cloud and AI infrastructure pick for major not a fluke, either. Net spending intentions for Azure have risen, considering in Piper's last four surveys, from 60% to 66%, then 77%, and now 81%. That's a superb climb that shows enterprise commitment is sticking, as its rivals fight for market share. Moreover, the firm is baking in stronger operating cash flow margins, up to 51.8% from 47%, applying a 26-times multiple on 2030 estimates, then discounting back three years. Backing up the bullish call, BMO Capital also lifted its price target on Microsoft, though not quite as aggressively. BMO sees Microsoft stock surging to $550, up from $485, due to steady Azure usage and upbeat feedback from cloud experts. Still, we're seeing stable consumption and aggressive pricing from VMware, which helps with cloud migrations. BMO is holding its Azure growth forecasts steady for now, which doesn't hurt Microsoft's analyst issues eye-popping Microsoft stock price target first appeared on TheStreet on Jul 11, 2025 This story was originally reported by TheStreet on Jul 11, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-07-2025
- Business
- Yahoo
Veteran analyst issues eye-popping Microsoft stock price target
Veteran analyst issues eye-popping Microsoft stock price target originally appeared on TheStreet. Microsoft's () has been a dark horse this year, as its cloud and AI engines continue to fire. Be it Azure's dominance, Copilot's spread, or its massive data center bets, Microsoft is marching forward with considerable aplomb. 💵💰💰💵 Despite the uncertainty, it has kept pushing the pace, posting strong guidance, winning fresh analyst upgrades, and firmly holding its spot at the top of the tech hierarchy. All things point to more upside for Microsoft stock, and that's exactly why a fresh Wall Street upgrade just dropped jaws, setting a price target that's adding another massive chunk to its already giant market cap. Microsoft's Azure cloud has been doing a lot of heavy lifting, and the numbers prove it. For context, in the third quarter of fiscal 2025, Microsoft's Intelligent Cloud sales hit $26.8 billion, up 21% year-over-year. Strip out forex-related swings, and that growth jumps to 22%. At the core of it all is Microsoft's dependable Azure and its other cloud services, which posted an incredible 35% quarterly growth in constant currency. Nearly 50% of that jump came directly from AI workloads. Add it all up, and Microsoft's total cloud sales have soared to $42.4 billion, marking a 20% robust infrastructure-as-a-service (IaaS) demand is pushing the company's capacity to the limit in key regions, indicative of Azure's infrastructure muscle. Currently, Azure commands roughly 23% to 25% of the global cloud market share. That's closing in on Amazon Web Services' 29%, while Google Cloud trails behind at around 12%. Microsoft's commercial bookings are also through the roof, up 67% year-over-year to roughly $300 billion in locked-in contracts offering some serious revenue visibility. Management's outlook is just as strong. For Q4, it's targeting Intelligent Cloud sales of $28.75 billion to $29.05 billion, with Azure growth pinned at roughly 34% to 35%. Demand hasn't shown signs of much easing, even as supply constraints bite. More Tech Stock News: TikTok's next move has Google and Meta sweating bullets Cathie Wood shells out $13.9 million for one high-stakes biotech stock Apple's quiet shake-up could redefine its future Profitability is surging, too. Last quarter's earnings per share came in at $3.46, blowing past Wall Street's expectations and reflecting healthier margins from Azure's scale. Needless to say, it has been nothing but success since CEO Satya Nadella's pivot to the cloud in 2014, with Microsoft pouring $80 billion into data-center buildout. Also, its tight partnership with OpenAI and its investments in Copilot AI are starting to pay off. Piper Sandler just bet big on Microsoft's cloud momentum, and its fresh $600 price target is a testament to that. The research firm bumped its target from $475 to $600 on July 10, a massive jump from Microsoft stock's current price of around $504.80, flirting with the $4 trillion club. Piper Sandler touts Microsoft's growing grip on the cloud, especially in IaaS, pointing to new survey data that shows Azure spending intentions hitting record highs. For the first time, over 80% of chief information officers told Piper they are looking to raise spending on Azure. That cements Microsoft as the leading cloud and AI infrastructure pick for major not a fluke, either. Net spending intentions for Azure have risen, considering in Piper's last four surveys, from 60% to 66%, then 77%, and now 81%. That's a superb climb that shows enterprise commitment is sticking, as its rivals fight for market share. Moreover, the firm is baking in stronger operating cash flow margins, up to 51.8% from 47%, applying a 26-times multiple on 2030 estimates, then discounting back three years. Backing up the bullish call, BMO Capital also lifted its price target on Microsoft, though not quite as aggressively. BMO sees Microsoft stock surging to $550, up from $485, due to steady Azure usage and upbeat feedback from cloud experts. Still, we're seeing stable consumption and aggressive pricing from VMware, which helps with cloud migrations. BMO is holding its Azure growth forecasts steady for now, which doesn't hurt Microsoft's analyst issues eye-popping Microsoft stock price target first appeared on TheStreet on Jul 11, 2025 This story was originally reported by TheStreet on Jul 11, 2025, where it first appeared. Sign in to access your portfolio
Yahoo
09-07-2025
- Business
- Yahoo
Oracle's Cloud Breakthrough Spurs Price Target Hike
Jefferies boosting Oracle's (NYSE:ORCL) price target to $270 while keeping their Buy ratingthanks to a string of mega deals that are supercharging its cloud business. Word is there's a jaw-dropping $30 billion-a-year contract kicking in by FY 2028enough to cover about two-thirds of Oracle's IaaS revenue estimate and a third of total sales. Warning! GuruFocus has detected 9 Warning Signs with ORCL. Couple that with over 100% growth in its backlog (aka RPO), and it's clear why analysts feel more top of that, Oracle is leasing 4.5 GW of data-center power to OpenAI, cementing its spot in the AI infrastructure race. All told, these high-visibility deals make hitting that $104 billion 2029 revenue goal look a lot less riskyand set the stage for possible upward tweaks at next month's CloudWorld event. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
09-07-2025
- Business
- Yahoo
Oracle's Cloud Breakthrough Spurs Price Target Hike
Jefferies boosting Oracle's (NYSE:ORCL) price target to $270 while keeping their Buy ratingthanks to a string of mega deals that are supercharging its cloud business. Word is there's a jaw-dropping $30 billion-a-year contract kicking in by FY 2028enough to cover about two-thirds of Oracle's IaaS revenue estimate and a third of total sales. Warning! GuruFocus has detected 9 Warning Signs with ORCL. Couple that with over 100% growth in its backlog (aka RPO), and it's clear why analysts feel more top of that, Oracle is leasing 4.5 GW of data-center power to OpenAI, cementing its spot in the AI infrastructure race. All told, these high-visibility deals make hitting that $104 billion 2029 revenue goal look a lot less riskyand set the stage for possible upward tweaks at next month's CloudWorld event. This article first appeared on GuruFocus. Sign in to access your portfolio
