Cowen just out 35 pages. MSFT AMZN leaders
TMT:
AMZN/MSFT/GOOG/RAX/IBM, Public Cloud Report: Survey of 200+ public cloud users positive for AMZN, MSFT, RHT, VMW, RAX less so for GOOG and IBM: LINK TO FULL REPORT & DISCLOSURES
· Reliability and security remain areas of focus but no longer barriers to adoption and are now critical reasons for determining vendors (ie reliability #1, #2 & #3 reason for selecting AWS), positive for long term TAM. Cost a main concern.
· Spending remains robust. Future growth likely to be driven by enterprise with enterprise spend expected to grow 26% in '16
· Increasingly a 2 horse race with AMZN AWS leading MSFT Azure
o AWS still leading the pack, raising our AWS estimates, valuation to $38B, and AMZN target to $435. Ranked #1 in share of budget and a close #2 to Azure in overall usage LINK TO FULL REPORT & DISCLOSURES
o MSFT Azure 2nd place in overall spend at 23% to AWS' 27%, highest ASP amongst enterprise vendors at $240K
· Survey results were less positive for GOOG Cloud placing in the middle of the pack in usage, average overall spending, and expected spending growth despite sig investments and price cuts
· RHT findings positive on percentage of workloads that were Linux based and 74% of respondents expect to deploy Linux containers in production next 3 yrs and 42% in 2 yrs
· VMW screened better than expected despite being seen as most expensive with vCloud Air ranking #1 in reliability, #2 in consistent performance, and 59% expect to use VMW orchestration software.
· RAX ranked in the 2nd tier for public cloud (1/3 of RAX business) but interest appears to remain high. RAX ranked 3rd in expected growth, and 9% who weren't using RAX were considering adding as an additional provider [highest overall].
