Top 7 in 2017 : Cloud R&D Spending

When Werner Vogels is tweeting about 2017 cloud r&d spending, we listen. Earlier today re:Code had a post about Tech R&D spending for fiscal 2017. Werner is Amazon’s CTO and papa bear of AWS, so his commentary is notable. We took the data in the article and stripped it down to the major cloud and data center providers. We think it provides a good proxy to measure cloud growth and size over the next few years.

 

 

Using the data set from Werner’s post, here are how the major players in the public cloud and data center markets rank:

2017 cloud r&d spendingSource: FactSet

We have covered Oracle’s late entry into the public cloud markets in prior posts, but this data set provides a new look into how far they and IBM are likely behind Amazon and Google’s lead in the cloud. Tech R&D tends to have a more immediate impact on revenue than other industries like pharma, since clients can immediately consume new services and APIs.

Given this data, we will be looking forward to the first quarter and 2018 reporting data to see how closely they correlate.

Matthew Scott