IBM could overpower Amazon when it comes to cloud services

Listen
Text
  • Small
  • Medium
  • Large

The cloud computing market was expected to reach the substantial value of $121.1 billion this year, a value that is only expected to grow. In this behemoth market companies such as Amazon and IBM have already defined themselves as leaders. But, a recent Forbes report predicts that IBM has the opportunity to edge out Amazon as the market's top dog.

Amazon Web Services, the company's cloud services division, reached a $5 billion value in less than 10 years and shows no signs of slowing growth, according to the Forbes report. On the other hand, IBM's cloud services are a $7.7 billion business. IBM's cloud services are growing at 75 percent, outstripping Amazon Web Services' 50 percent growth.

Though Amazon Web Services has a diverse portfolio of companies, ranging from video streaming service giant Netflix to small startups, IBM is actively competing. The Forbes article points out that IBM acquired a key cloud services competitor, Softlayer, and launched its "software as a service" platform Bluemix. IBM is looking at the cloud business from a broad perspective. As the Forbes article put it, "IBM is creating an app store for the cloud at an enterprise scale."

Healthcare holds a relatively small slice of the cloud computing market, with an expected value of $5.4 billion by 2017, but technology adoption in the medical field is hitting feverish levels. Meaningful use and ICD-10, just two factors amongst many, are driving healthcare professionals on the provider, payer and vendor side to adopt and create new technologies every day, many of which are cloud-based.

Amazon and IBM have both made significant strides in healthcare. During its tumultuous launch, Healthcare.gov transitioned a number of its functions to Amazon's cloud computing services. IBM recently introduced IBM Watson Health and the Watson Health Cloud, a significant move into the healthcare IT space. Which company will eventually prove to be dominate in the global market, and healthcare space, remains to be seen.

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars