Amazon’s earnings again were boosted by continued strong growth of the Amazon Web Services cloud-computing services division. Amazon used the earnings announcement to reveal that sales from its second annual Prime Day, where customers on their Prime membership scheme had access to exclusive deals, were up more than 60% on 2015’s event.
The true goal of Prime Day is not to rack up sales, but rather to sign up more Prime members, who pay Amazon $99 a year. Amazon is opening 18 Fulfillment Centers in the third quarter, compared to opening 6 in the third quarter of 2015. Kotlyar expects Amazon to continue to thrive in Q3, although she said external forces like ongoing economic uncertainly and an increasingly unpredictable USA election cycle could disrupt the company’s momentum.
According to Amazon, Amazon.in was the most visited e-commerce site and most downloaded mobile shopping app in India during Q2. Amazon Chief Financial Officer Brian Olsavsky said Amazon would double its spending on digital content in the second half of the year compared with a year earlier to expand the number of TV shows and movies available to Prime subscribers. With KPMG predicting a doubling of cloud services revenue over the next two years, it’s a good time to point out where cloud computing has gained strength over the past year in capabilities and services. Here are the top seven developments we saw in public cloud computing in 2012: The three biggest setbacks, and the four biggest wins. The June 29 outage came after the region suffered a series of violent electrical storms, and the outages were contained to one availability zone inside the data center.
None of these incidents was a crippling event for Amazon customers or for Amazon’s cloud infrastructure business.
The periodic outages suggest just what a complex beast infrastructure-as-a-service (IaaS) is. The Seattle-based company crushed analyst expectations for its Q1 2016 earnings on Thursday, as the company’s stock spiked more than 12 percent in after-hours trading. On the earnings conference call today, Amazon CFO Brian Olsavsky called AWS a $10 billion business.
Charlie O’Shea, a retail analyst for Moody’s, pointed out the “impressive” operating margin for AWS. Olsavsky noted that Amazon has reduced AWS pricing 51 times since it first launched the product.
Olsavsky added that AWS is “innovating at a rapid clip,” with 217 significant new features delivered last quarter, up 25 percent from last year.
Stacked against Amazon’s retail business, the company’s other big money-maker, it’s easy to see why Amazon continues to invest in AWS, which is used by customers like Netflix and Apple and competes with similar cloud offerings from Microsoft and Google.
Taylor Soper is a GeekWire staff reporter who covers a wide variety of tech assignments, including emerging startups in Seattle and Portland, the sharing economy and the intersection of technology and sports.
A peep through some of the leaders’ offerings shows all of them have adopted pay-per-use strategy for the basic usage. Amazon Elastic Compute Cloud (Amazon EC2) is a web service that provides resizable compute capacity in the cloud. On-Demand Instances let to pay for compute capacity by the hour with no long-term commitments.


Microsoft’s cloud, the Azure, also has a flexible pricing list, with the company offering pay for only what you use, the same as AWS.
The company says its Pay-As-You-Go subscriptions are most popular and flexible payment plan. Microsoft’s 12-month prepaid subscription for Azure services let you to earn discounts on the amount a buyer prepays.
The company also says one can work with the same resellers that you already purchase Microsoft software from using the Open Volume License Program. Google claims that its Cloud Platform is up to 40 percent less expensive than other public cloud providers. Though pay-per-usage is the most popular payment system for cloud services, charges vary in line with the type of services one is embracing.
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Earlier in the series, we discussed analysts’ expectations for Microsoft’s fiscal 3Q16 results. Given the company’s aggressive initiatives to increase its stance and growth in the cloud space, it’s very likely that Microsoft’s Intelligent Cloud will continue to post a strong performance.
By making SQL Server database available on Linux OS, Microsoft not only aims to improve its position in the cloud, but also the database space, which is currently dominated by Oracle (ORCL). Oracle also supports Linux.
The above chart shows the contribution of various products toward Microsoft’s overall revenues in fiscal 2015. Investors who want exposure to Microsoft could consider investing in the Technology Select Sector SPDR ETF (XLK).
The company beat analysts’ estimates for the quarter, but provided a lukewarm guidance for the third quarter of the year.
The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $1.14 per share. This week, Prime launched in India, the second most-populous country in the world, and came to Belgium in February. At the same time, we should look at the cloud’s weaknesses, as a cautionary tale for those IT teams whom KPMG says are about to migrate production applications to the cloud. A few customers likely dropped the service, as WhatsYourPrice did after the online dating service got a flood of complaints during the two-hour June 29 outage. Its supposedly redundant, resilient architecture keeps coming up with unanticipated ways of crapping out during predictable events, or from the occasional human error. He repeated that Amazon was “very happy” with the top and bottom line for AWS during Q1 2016, pointing specifically to a 23 percent operating margin, up from 12 percent a year ago.
Phil Hardin, Amazon’s director of investor relations, noted that “we aren’t in the business of raising prices.” Given that Amazon lowers prices yet grows revenue is an indication of steady usage growth for AWS, Hardin said.
However, prices vary depending on the type of cloud service a customer is adopting, making a comparison less accurate. This frees users from the costs and complexities of planning, purchasing, and maintaining hardware and transforms what are commonly large fixed costs into much smaller variable costs.


Azure is available for purchase in 140 countries around the world and support billing in 24 currencies.
There are no minimum purchases or commitments and one can cancel anytime.  A buyer can pay for them by credit-card as well as by invoice.
If you have already purchased Azure from a reseller and have an Open license key, you can activate your Azure subscription or add more credits to it. By making an upfront usage commitment to Azure they earn several additional benefits—including flexible billing options and our very best prices. For the Managed Infrastructure category, the company charges $50 per month after the first 30 days across all Cloud Servers. It has given a long list of pricing on its website based on different cloud service it offers.
In this article, we’ll look at Microsoft’s (MSFT) offerings that could drive its growth in the future. Within Intelligent Cloud, Microsoft has server products, MS Azure, mobile tracking devices, and data centers. The top position, which Windows used to occupy, now features Microsoft’s cloud and server products.
While XLK invests ~10.6% of its holdings in Microsoft, it also has an exposure of ~38% to application software. While its sales are a relatively small part of the company, the business now contributes more profits than its overall North America operations.
However, the ongoing problem of outages gives cloud skeptics ammunition against moving essential applications there, even as the likes of Amazon, Google, Rackspace and Microsoft win the debate around other performance factors, such as load balancing and database services.
Cloud providers do have a better track record for uptime than the average enterprise data center, but cloud architects still have their work cut out . Among the list, Cloud Dataflow batch mode is priced at $0.01 per Google Compute Engine Unit per hour. Later in the series, we’ll discuss how Office 365 will contribute towards Microsoft’s cloud revenues in fiscal 3Q16. This was a major step for Microsoft, as the company is known for its Windows-centric strategy. 22, Amazon suffered an outage of its Elastic Block Storage service for a few hours, making it impossible for some companies to update their websites or retrieve data, even though the sites remained on display.
By bringing its SQL Server to Linux, Microsoft’s Azure, its cloud-computing platform, can run on Amazon Web Services (AMZN), which is a public cloud and mainly Linux-based.



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Comments

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