The article further discusses the cloud operating model's dominance, with hyperscale cloud growth outpacing on-premises by a rate of four to five times. It notes Microsoft's lead in AI, which is reflected in its numbers, and predicts that AWS and Google will disclose a measurable revenue impact from AI in the fourth quarter. The article also highlights the potential growth of cloud leaders in AI, with IBM showing promise with watsonx and AWS expected to see accelerated momentum. Finally, the article suggests that generative AI will drive cloud demand and productivity, and expects an acceleration in Q4 cloud growth driven by gen AI.
Key takeaways:
- Artificial intelligence (AI) is everywhere but generally not showing up in earnings numbers or productivity statistics yet, according to a Breaking Analysis report.
- Microsoft's AI lead is showing in the numbers, with about a 300-basis point tailwind for Azure as a result of AI. AWS and Google are expected to disclose a measurable revenue impact from AI in the fourth quarter.
- Microsoft is leading in the use of generative AI, followed by Google. Interest in Amazon is high, despite the company playing catch-up for the first time in the cloud era.
- IBM's WatsonX is showing promise, and the company's strong consulting business gives it an advantage in the market. AWS is expected to see accelerated momentum following its re:Invent conference.