The leading global cloud service providers and infrastructural companies are more than happy to take advantage of the demand created by AI and hence are getting into business deals, investments, and even changing their platforms, which has been the case in the news lately.
Key Highlights
Oracle’s Ambitious Cloud Projections
In a very bold move, Oracle forecasts its cloud infrastructure to contribute over US$166 billion to its revenue by the end of fiscal 2030, and this would amount to almost 75% of its turnover.
Moreover, the corporation had to make big new bookings that included a multi-billion-dollar deal with Meta Platforms, which was a strong signal of increased spending of the enterprises in the cloud area.
Global Expansion: Google’s Belgium Investment
Google is going to put up around €5 billion in the next couple of years in Belgium for its cloud and AI infrastructure — this will include data-center construction and clean-energy contracts, hence a further indication of the global nature of the cloud war.
Vendor Strategy Shift: Huawei’s Open-Source Cloud AI Stack
By the end of 2025, Huawei will make its entire cloud AI software stack — including the “CANN” toolkit and “Mind” development suite — available to the public so that there can be multi-vendor deployment and vendor lock-in reduced.
Data Sovereignty & Regional Infrastructure: Atos’ Move
Atos is counteracting regulatory and sovereignty issues by forming “sovereign AI” in the UK and Ireland with three data hubs. This makes it clear that the use of cloud computing today is not only a matter of size but also of jurisdiction and data locality.
Why This Matters
- AI workloads = cloud infrastructure demand: The cloud computing sector is growing via AI (mostly generative AI) as companies require more computer capabilities, data storage, and networks.
- Regional and regulatory pressures: Regional-specific and sovereign solutions are being provided more often by cloud providers due to factors such as data sovereignty, compliance, and geopolitics.
- Competitive dynamics: Even though the traditional hyperscalers (AWS, Google, Microsoft) continue to rule the market, Oracle and Huawei are taking steps to hide the existing companies’ powers and gradually take over the market.
- Open-source & vendor openness: Companies that open their stacks are not only encouraging interoperability and flexibility but also meeting the requirements of enterprise cloud customers who increasingly demand it.
Outlook & Trends to Watch
- The trend of large multiyear cloud contracts will continue and even increase, since the companies are going to be using AI-driven projects and will need the infrastructure and services for a long time.
- Keep an eye on the pricing and margin pressures: The cloud market will be getting more and more commoditized and very competitive, so the providers will either experience their margins being squeezed or will have to do it through higher-value services.
- The increasing adoption of hybrid/multi-cloud and edge computing: Enterprises will be adopting distributed cloud models more and more, as is the case when data-sovereignty and latency concerns are increasing, rather than relying solely on centralized public clouds.
- More open-source and ecosystem flexibility: The example of Huawei demonstrates that providing customers with more freedom in employing tools and choosing vendors might be a differentiator.
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