Hybrid cloud market growth potential is big
On November 29, Tech Data (TDC) announced its third-quarter earnings. It delivered robust revenue and EPS growth and also announced a better-than-expected outlook for the fourth quarter. The strong earnings growth and outlook resulted in Tech Data’s stock gaining by around 20% the day earnings were announced.
In an interview with CNBC’s Jim Cramer on December 10, Tech Data CEO Rich Hume said, “Hybrid cloud is clearly the mode of the future.” Why did he say that? As the name suggests, hybrid cloud is a platform where on-premise and cloud workloads are shared. According to a report from MarketsandMarkets, the hybrid cloud market is expected to grow from $44.6 billion this year to $97.6 billion in 2022 at a compound annual rate of 17%.
However, the competition in this market is big. IBM (IBM) has already been working towards gaining a share of this lucrative market. IBM has launched a number of innovative products such as IBM Private Cloud and IBM Multicloud Manager. Microsoft (MSFT), on the other hand, has its own hybrid cloud product, Azure Stack. Even Google (GOOG) has forged partnerships with Cisco (CSCO) and Nutanix (NTNX) to manage clients’ hybrid cloud applications.