Learn how GenAI will offset some of the slowdown in cloud revenue growth; how Microsoft will challenge Amazon Web Services’ leadership in IaaS and PaaS; and how SaaS vendors will monetize GenAI in 2025
Top hyperscalers Amazon Web Services (AWS) and Microsoft are capturing legacy Oracle and SAP workloads as customers continue to migrate to the cloud to not only outsource their IT operations but also drive lasting business value. Though the geopolitical outlook is increasingly uncertain, we expect customers will continue to prioritize more traditional “lift and shift” migrations, and steps vendors are taking to deliver more integrated solutions could help.
after two years of GenAI disruption, a clear trend is emerging across the ecosystem: strategic partnering is becoming essential. Companies such as McKinsey & Co, Wipro, Dell Technologies, Amazon Web Services (AWS) and NVIDIA are adopting this approach, recognizing that no single organization can deliver comprehensive GenAI-enabled solutions alone. Instead, success increasingly depends on leveraging the technology and expertise of ecosystem partners.
Get insights into how AWS AI innovation is driving the flywheel effect, and discover the native services and building blocks offered by AWS to address specific use cases.
The revenue generated from generative AI (GenAI) offset some of the impact of cost-saving and expense-reduction efforts that defined the IT and cloud market in 2024. We expect some of that luster to fade in 2025, however, as the lack of a clear ROI from GenAI solutions will be a sticking point that slows investment in the coming year.
Market leaders Amazon Web Services (AWS) and Microsoft have highlighted that customers are signing larger cloud contracts with longer terms. At least in the case of AWS, customers are increasingly applying their cloud credits toward one- or three-year subscription offerings like Savings Plans and Reserved Instances.
In this TBR Insights Live session, TBR’s Cloud team gives a deep dive on AI’s impact on the cloud industry and highlights key findings from TBR’s newest cloud research report, AI & GenAI Model Provider Market Landscape, including examples of technology companies’ activities in 2024 as well as what to expect across the GenAI landscape in 2025.
TBR expects to see incremental strengthening of the professional services capabilities of hyperscalers as well as traditional software players; however, professional services companies, along with India-centric players, have demonstrated their ability to scale vast talent benches to serve clients and act as go-to partners for the biggest cloud vendors.
With multitenant OCI, Dedicated Regions, Cloud@Customer and Oracle Alloy, Oracle has quickly emerged as one of the most flexible, delivery-agnostic IaaS vendors on the market. The other big component of Oracle’s “infrastructure anywhere” vision is multicloud, in which customers can run Oracle databases as native services hosted in the data centers of Oracle’s biggest hyperscaler competitors.
The history around monetizing new technologies is what makes the rise of generative AI (GenAI) over the past 18 months so notable. In such a short period of time, we have tangible evidence from some of the largest IT vendors that billions of dollars in revenue have already been generated in the space, with the expectation that even more opportunity will develop in the coming years.