Last modified: 7th Feb, 2020

Organizations need cloud-related services to get onboarded onto public clouds and to transform their operations as they adopt public cloud services. Currently, almost 19 percent of cloud budgets are spent on cloud-related services, such as cloud consulting, implementation, migration and managed services, and Gartner expects that this rate will increase to 28 percent by 2022.” – Gartner1

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The demand for public cloud solutions is rising, and this translates to growing opportunities for public cloud providers. The top public cloud companies are enhancing their services and dropping the prices to better compete in the public cloud market.

What is Public Cloud? back to top

A public cloud, like Azure or AWS or Google, is a multi-tenant service based upon standard model of cloud computing, where a service provider or a third-party provider provides resources, like storage and applications to the general public over a network, like internet.

Users have no control or visibility over the placement of the infrastructure. Services are either free, low cost or are on pay-per-usage model, so no wastage of resources is there. The set-up is easy and almost inexpensive as cost of applications, bandwidth and hardware are covered by the service provider.

It is not possible to select cache, hardware or storage performance (SAS/SATA) in the public cloud. Public cloud provider decides the hardware and network for the user. Also, PCI, SOX or HIPAA compliance cannot be provided in the public cloud as it is a multi-tenant environment, in which the user’s server shares the network devices, storage and hardware with multiple others in the cloud.

It is different from the private and hybrid cloud as private cloud is used by organizations for their own use, and hybrid cloud is a combination of public and private clouds.

The public cloud comprises a broad range of products and services related to cloud, including infrastructure as a service (IaaS), software as a service (SaaS), and platform as a service (PaaS). As per Gartner, the global public cloud services market will grow 17% in 2020 to total $266.4 billion, up from $227.8 billion in 2019.

“Before the Acronis implementation, there was a huge risk that malware could take down our company. Now, with Acronis, I can say that we’ve done everything possible to protect our data from an attack.” CIO, high performance manufacturing company.
Read details in a report by Forrester.
[ninja_form id=2]

Who should go for public cloud? back to top

Public Cloud is the obvious choice for:

  • Developers and testers of application codes who fire up and tear down development servers regularly.
  • Those who require scalability i.e. capability of adding compute resources at peak times.
  • Those doing projects in collaboration with different teams.
  • Those running webservers where data security is not a major concern.
  • Those who have SaaS (Software as a Service) applications from vendors implementing proper security strategies.
  • Those who are using PaaS (Platform as a Service) for doing ad-hoc software development projects.

Top Public cloud providers back to top

The public cloud market is majorly dominated by Amazon, Microsoft, IBM and Google. Experts predict that these face competitions only from one another and are not likely to be replaced by any other cloud service provider in the near future at least. The reason behind it is that competing in the public cloud needs very heavy investment, as well as masses of tech talent to support the underlying infrastructure.

Amazon Web Services (AWS) has been leading the public cloud market since it started services in 2006. According to Gartner, Amazon is the no.1 public cloud provider, holding 47.8% share in the IaaS market in 2018. Microsoft is holding the second position with 15.5% market share, followed by Alibaba Cloud (7.7%), Google Cloud (4%), and IBM Cloud (1.8%).

“Despite strong growth across the board, the cloud market’s consolidation favors the large and dominant providers, with smaller and niche providers losing share. This is an indication that scalability matters when it comes to the public cloud IaaS business. Only those providers who invest capital expenditure in building out data centers at scale across multiple regions will succeed and continue to capture market share. Offering rich feature functionality across the cloud technology stack will be the ticket to success, as well.” –Sid Nag, research vice president at Gartner.

Under the leadership of CEO Satya Nadella, Microsoft is quickly gaining ground, thereby, shortening the gap between AWS and Azure. IBM has also reportedly recovered from the transformational phase and has been experiencing a growth in its revenue due to its cloud, security services and advanced solutions like IBM Watson.

On the other hand, the search engine giant Google too is able to maintain its position in the top public cloud providers list, with its Google Cloud Platform, by introducing discounts and adding features. Google also announced new Network Service Tiers – Premium and Standard to optimize performance and cost of using the public cloud.

Amazon, Microsoft and Google provide similar storage solutions but there are a number of differences in features and pricing of their public cloud services, which set them apart from the other. They either drop the prices of cloud instances, offer discounts, drop billing increments, or even provide per second billing options to stay one step ahead of each other.

Gartner named AWS, Microsoft, and Google among the Leaders in Infrastructure as a Service (IaaS) Magic Quadrant 2019, while keeping Alibaba Cloud, Oracle, and IBM among Niche Players.

Best public cloud providers comparison: AWS v/s Azure v/s Google Cloud v/s IBMback to top

The comparison of AWS, Azure, Google Cloud Platform, and IBM Cloud can be done on the basis of features, pricing, and solutions.

Features and SolutionsAWSGCPIBM CloudAzure
Maximum Processors in VM1289656128
Maximum memory in VM (GiB)390414332423800
Maximum memory in VM (GiB)390414332423800
Operating Systems supportedWindows, SLES, CentOS, CoreOS, OpenSUSE, RHEL, CloudLinux, Debian, FreeBSD, Ubuntu, Oracle LinuxWindows, SLES, CentOS, CoreOS, OpenSUSE, RHEL, Debian, FreeBSD, Ubuntu,Windows, CentOS, CoreOS, RHEL, CloudLinux, Debian, FreeBSD, Ubuntu,Windows, SLES, CentOS, CoreOS, OpenSUSE, RHEL, Debian, FreeBSD, Ubuntu, Oracle Linux
SLA AvailabilityAmazon S3: Monthly uptime of at least 99.9% for any billing cycle.

Amazon EC2: 99.95% annual uptime in service year.

99.95% Monthly Uptime100% Uptime for Private & Public Network, Customer Portal and redundant infrastructure99.9% Uptime
MarketplaceAWS MarketplaceG Suite MarketplaceIBM MarketplaceAzure Marketplace
ScalabilityAWS Auto ScalingAutoscalingAuto ScalingAzure Autoscaling, Virtual Machine Scale Sets, Azure App Service Scale Capability (PaaS)
Virtual ServersElastic Compute Cloud (EC2) Instances,Amazon LightSailCustom Machine Types, Compute EngineIBM Virtual ServersAzure Virtual Machines, Azure Virtual Machines & Images
Backend process logicWeb Jobs
Container InstancesEC2 Container Service (ECS), EC2 Container RegistryKubernetes EngineIBM Cloud Container ServiceAzure Container Service (AKS), Azure Container Registry
Container Orchestrators/ MicroservicesElastic Container Service for Kubernetes (EKS)Google Container EngineIBM Cloud Container ServiceAzure Container Service (AKS), Service Fabric, Azure Container Service (ACS)
Batch ComputingAWS BatchPreemptible VMsAzure Batch
ServerlessLambda, Lambda @ EdgeGoogle Cloud Functions (Beta)IBM Cloud FunctionsAzure Functions, Azure Event Grid
Object storageSimple Storage Services (S3)Google Cloud StorageIBM Cloud Object StorageAzure Storage
Shared file storageElastic File SystemGoogle Cloud Storage FUSEFile StorageAzure Files
Virtual Server disk infrastructureElastic Block Store (EBS)Google Persistent DiskBlock StorageAzure Storage Disk
Archiving – cool storageS3 Infrequent Access (IA)Cloud StorageObject StorageAzure Storage – Standard Cool
Archiving – cold storageS3 GlacierGoogle Cloud Storage Nearline & ColdlineBackup StorageAzure Storage – Standard Archive
Hybrid StorageStorage GatewayStorSimple
BackupAzure Backup
Data transferAWS Import/Export Disk, AWS Import/Export Snowball, AWS Snowball Edge, AWS SnowmobileCloud Data TransferData Transfer ServiceImport/ Export, Azure Data Box
Disaster RecoveryAWS Disaster RecoverySite Recovery
Relational Database RDS for MariaDB, RDS for SQL Server, RDS for MySQL, RDS for Oracle DB, RDS for Postgre SQLSQL Server, Google Cloud SQL, Cloud SQL support for Postgre SQL (Beta)Compose for MySQL, Compose for Postgre SQLSQL Database, Azure Database for MySQL, Azure Database for PostgreSQL (Preview)
NoSQL – key/value storage, document storageDynamo DB and SimpleDBCloud SpannerDb2 on CloudTable Storage Azure Cosmos DB
Non-relational databaseAmazon Neptune (Preview), Amazon EMR, Amazon Dynamo DB, Amazon SimpleDBGoogle Cloud Dataproc, Google Cloud Dataflow, Google Cloud Bigtable, Google Cloud DatastoreCompose for JunusGraph, IBM Open Platform, CloudantAzure HDInsight, Azure Batch, Cosmos DB
Database MigrationDatabase Migration ServiceLiftAzure Database Migration Service
CachingElastiCacheNone – App Engine onlyCompose for RedisAzure Redis Cache
Cloud virtual networkingVirtual Private Cloud (VPC)Google Virtual Private Cloud (VPC)VLANsVirtual Network
Content delivery networkCloudFrontGoogle Cloud CDNContent Delivery NetworkAzure Content Delivery Network
Domain name system managementRoute 53Google Cloud DNSDNSAzure DNS, Traffic Manager
Cross – premise connectivityAWS VPN GatewayCloud VPNVPNAzure VPN Gateway
Dedicated networkDirect ConnectGoogle Cloud InterconnectDirect LinkExpressRoute
Load balancingClassic Load Balancer, Network Load Balancer, Application Load BalancerGoogle Cloud Load BalancingLoad BalancerLoad Balancer, Application Gateway
IoTAWS IoTGoogle Cloud IoT, Cloud IoT Core (Beta)Internet of Things (IoT)Azure IoT Hub
IoT ServicesKinesis, EMR, SNS, Machine Learning, Data Pipeline, QuickSightGoogle Cloud Pub/SubIBM Push NotificationsMachine Learning, IoT Hub, Power BI, Stream Analytics, Notification Hubs
Streaming dataKinesis Streams, Kinesis FirehoseCloud DataflowStreaming AnalyticsEvent Hubs
Edge compute for IoTAWS GreengrassAzure IoT Edge
Elastic data warehouseRedshiftGoogle Cloud BigQueryDb2 Warehouse on CloudSQL Data Warehouse
Data orchestrationData Pipeline, AWS GlueGoogle Cloud DataflowData Factory, Data Catalog
Big data processingElastic MapReduce (EMR)Google Cloud Dataproc, DataflowIBM Open PlatformHDInsight
Data discoveryAmazon AthenaBig QueryData Catalog, Azure Data Lake Analytics
SearchElasticsearch, CloudSearchNone – only App EngineCompose for ElasticsearchAzure Search
AnalyticsKinesis AnalyticsGoogle Cloud DataflowStreaming analyticsStream Analytics, Data Lake Analytics, Data Lake Store
VisualizationQuickSightGoogle Data Studio (Beta)PowerBI, PowerBI Embedded
Machine LearningMachine Learning, SageMakerGoogle Cloud AI, Google Cloud Datalab, Google Cloud Machine Learning EngineWatsonAzure Machine Learning Studio, Azure Machine Learning Workbench
Visual RecognitionAmazon RekognitionVision APIVisual RecognitionComputer Vision API, Face API, Emotions API, Video API
Virtual Personal AssistantAlexa Skills KitsGoogle AssistantVirtual Personal AssistantCortana Intelligence Suite – Cortana Integration, Microsoft Bot Framework + Azure Bot Service
Text to SpeechAmazon Polly, Amazon Translate, Amazon TranscribeTranslation API, Speech APIBing Speech API
Speech recognitionAmazon Lex, ComprehendNatural Language APINatural Language Classifier, Language Translator, Alchemy API
FirewallWeb Application FirewallFirewallsApplication Gateway Web Application Firewall (in preview)
Authorization & AuthenticationIdentity and Access Management (IAM), Multi-Factor Authentication, AWS OrganizationsGoogle Cloud Identity and Access ManagementFeature in webportalAzure Active Directory, Multi-Factor Authentication, Azure Subscription and Service Management + Azure RBAC
EncryptionAmazon S3 Key Management Service for server-side encryption, Key Management Service, CloudHSMGoogle Cloud Key Management ServiceHardware Security Module, Key ProtectAzure Storage Service Encryption, Key Vault
SecurityInspector, Certificate ManagerSSL Certificates, Nessus Security ScannerSecurity Center, App Service Certificates
ComplianceAWS ArtifactMicrosoft Service Trust Portal
Directory ServicesAWS Directory Service + Windows Server Active Directory on AWS, Cognito, AWS Directory ServiceAzure Directory Domain Services + Windows Server Active Directory on Azure IaaS, Azure Active Directory B2C
Information protectionAzure Information Protection
DevOps (Deployment Orchestration)OpsWorks (Chef-based), CloudFormationAzure Automation, Azure Resource Manager, VM extensions, Azure Automation
Monitoring & Management (DevOps)CloudWatch, CloudTrail, AWS X-Ray, AWS Usage and Billing Report, AWS Management ConsoleGoogle StackDriver, Monitoring, Logging, Error Reporting, Trace, DebuggerAzure portal, Azure Monitor, Azure Application Insights, Azure Billing API, Log Analytics
Cloud advisorTrusted AdvisorGoogle Cloud Platform SecurityAzure Advisor
AdministrationAWS Application Discovery Service, Amazon EC2 Systems Manager, AWS Personal Health Dashboard, Third PartyAzure Log Analytics in Operations Management Suite; Microsoft Operations Management Suite – Automation and Control functionalities, Azure Resource Health, Azure Storage Explorer
EmailSimple Email Service (SES)SendGrid
WorkflowSimple Workflow Service (SWF)Cloud Dataproc Workflow TemplatesBusiness RulesLogic Apps, Azure Automation
SchedulingWorkload SchedulerAzure Scheduler
Media transcodingElastic Transcoder, Elemental MediaConvert, Elemental MediaLiveMedia Services
MessagingSimple Queue Service (SQS)Google Cloud Pub/SubCompose for RabbitMQAzure Queue Storage, Service Bus Queues, Topics, Relays
API ManagementAPI Gateway, Elastic Beanstalk, CodeDeploy, CodeCommit, CodePipeline, AWS Developer ToolsGoogle Cloud EndpointsAPI ConnectAPI Management, Web Apps, API Apps, Cloud Services, Visual Studio Team Services, Azure Developer Tools, Power Apps
App testingAWS Device FarmCloud Test LabAzure DevTest Labs (backend), Xamarin Test Cloud (frontend)
DevOpsAWS CodeBuild, AWS Cloud9, AWS Code Star, AWS CodeCommit, AWS CodePipeline, AWS CodeDeploy, AWS X-RayCloud Source RepositoriesActive Deploy, Continuous Delivery, Delivery Pipeline, Globalization Pipeline, Track & PlanVisual Studio Team Services
App customer payment serviceAmazon Flexible Payment Service and Amazon Dev Pay
Game development (Cloud based tools)GameLift, LumberyardVisual Studio
Predefined templatesAWS Quick StartInstance TemplatesLifecycle project templatesAzure Quickstart templates
Backend process logicAWS Step FunctionsApp EngineIBM Cloud FunctionsLogic Apps
Programmatic accessCommand Line InterfaceCloud ShellAzure Command Line Interface (CLI), Azure PowerShell
Content management in cloudGoogle Sites, Google DocsIBM FileNetSharePoint Online
Enterprise app integrationGoogle App EngineIBM WebSphereLogic Apps
Commercial PaaS – IaaS- DBaaS frameworkIBM Cloud PrivateAzure Stack
Enterprise application servicesGoogle Enterprise SearchIBM offers Microsoft Consulting services for Dynamics 365, SharePoint and Office 365.Dynamics 365

AWS vs Microsoft Azure vs Google Cloud Platform vs IBM: The public cloud prices’ comparison back to top

With the maturing of cloud computing, the prices of instances from cloud providers are also witnessing good reductions.

AWS cloud pricing reductions back to top

In addition to reducing prices on a regular basis, AWS also gives options to customers for optimizing their use of AWS. Reserved instances allow Amazon EC2 users for obtaining discounts when compared to on-demand pricing, in addition to capacity reservation when utilized in an Availability Zone.

The price cuts are so frequent that AWS has a blog category dedicated to price reduction!

As per the latest announcement by AWS, effective December 1, 2017 the prices have been reduced for On-Demand and Reserved Instances in Asia Pacific (Mumbai) region as follows:

M4 – Up to 15%.

T2 – Up to 15%.

R4 – Up to 15%.

C4 – Up to 10%.

In May 2017, AWS announced its 61st price reduction. A no upfront payment option with a 1-year term for Standard RIs that was offered previously was changed to a No Upfront payment option with a 3-year term for C4, M4, R4, I3, P2, X1, and T2 Standard Reserved Instances.

Below were the average reductions for No Upfront Reserved Instances and Convertible Reserved Instances for Linux in different representative regions, respectively:

US East (Northern Virginia)US West (Oregon)EU (Ireland)Asia Pacific (Tokyo)Asia Pacific (Singapore)
US East (Northern Virginia)US West (Oregon)EU (Ireland)Asia Pacific (Tokyo)Asia Pacific (Singapore)

The prices for M4 Linux instances were lowered by up to 7%.

Moreover, AWS now offers per-second billing for EC2 and other services, instead of per-hour billing to make the cloud billing more flexible.

Azure cloud pricing reductions back to top

In addition to reducing prices on a regular basis, AWS also gives options to customers for optimizing their use of AWS. Reserved instances allow Amazon EC2 users for obtaining discounts when compared to on-demand pricing, in addition to capacity reservation when utilized in an Availability Zone.

The price cuts are so frequent that AWS has a blog category dedicated to price reduction!

In order to offer competitive pricing, Microsoft also has been lowering prices on a frequent basis. Microsoft has a price match promise according to which, it has a commitment to match Amazon Web Services prices for commodity services such as compute, storage and bandwidth.

In November 2017, Microsoft made Azure Reserved VM Instances (RIs) generally available on one or three-year term basis, claiming that customers can get up to 72% cost savings over pay-as-you-go pricing.

In May 2017, prices of Dv2 Promo VMs were lowered by up to 7% for Linux VMs and by up

to 5% for Windows VMs. The price reduction in a few representative regions was as follows:

West US-7.0%-5.0%
East US-7.0%-5.0%
Canada Central-6.5%-4.0%
West Europe-6.5%-5.0%
North Europe-6.5%-4.0%
UK South-7.0%-4.0%
Southeast Asia-6.0%-4.5%
Japan East-7.0%-4.5%
Australia East-7.0%-5.0%
Central India-6.5%-4.0%
Korea Central-7.0%-4.0%
Brazil South-7.0%-5.0%

The above price reductions came barely three months after the reductions in February, 2017, when prices of both virtual machines and storage were reduced. Compute optimized instances – F Series were reduced by 24% and General purpose instances – A1 Basic by up to 61%.

“Acronis is directly responsible for saving our company 1200 hours per year for IT operations staff in backup and recovery workflows.” CIO, high performance IT company.
Read details in a report by Forrester.
[ninja_form id=1]

The table below shows VM price reductions in UK South.

Azure VMsPrice reductions (Linux VM)Price reductions (Windows VM)
F1 to F16-23%-23%-18%
A1 Basic-42%-51%

Azure also offers billing per-second on container instances, for saving money and providing more transparency in billing.

Google cloud pricing reductions back to top

Google Cloud Platform is the cheapest option with it being 60% less expensive for compute as compared to other cloud services for various workloads, with no amount to be paid upfront. It has dropped its prices 3 times in last three years.

It provides per-second billing discounts, sustained usage discounts (SUD) and Committed Use Discount (CUD) to the customers. Custom machine types help customers save up to 50% by matching the needed machine, eliminating over-provisioning and excess payment.

Google has publicly committed to passing along to customers any future price reductions Google achieves through technology-driven advancements in density, scale, power, and cooling. What Google provides is on-demand, real-time pricing. – ESG Labs Whitepaper

In November 2017, Google reduced the price of NVIDIA Tesla GPUs linked to on-demand Google Compute Engine VMs by up to 36%. Lower priced GPUs, along with Custom VM shapes and Sustained Usage Discounts, provide an additional 30% off of instance pricing, allowing customers to run parallel compute tasks on high-performance GPUs. Preemptible Local SSDs were also reduced in price by 40 percent as compared to on-demand Local SSDs.

In August 2017, Google announced price cuts on Local solid state disks (SSDs) attached to on-demand Google Compute Engine virtual machines. Lower prices for Local SSDs that are used with Preemptible VM instances were also introduced and were made up to 71% cheaper than before.

Google Compute Engine had provided per second billing from the beginning, but updated its billing model in 2013 to bill instances on per-minute usage. Instances running 10 minutes or less are charged for 10 minutes usage. Following first 10 minutes, per-minute basis usage charges are applicable.

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IBM cloud pricing reductions back to top

With the increase in competition, trust in cloud and cloud -native deployment, the market is getting more mature with time, leading to price cuts spiraling to other services linked to VMs, like storage, Database etc.

While last few years saw the leading giants introducing price cuts on storage as it became the next front for competition to grab the bigger cloud market share, experts from 451 Research predict price cuts in relational databases to be the next competitive arena for them.

IBM pioneered this concept, and in March 2017, cut the price of its object storage, with Google, Microsoft and AWS quickly following suit. IBM’s Cloud Object Storage Flex (Flex), works on a “pay as you use” model of storage tiers and potentially lowers the price by 53 percent as compared to AWS S3 IA and 75 percent as compared to Azure GRS Cool Tier.

This leads to an overall reduction in the price of the cloud instance.

Given below are the pricing of AWS, Azure, IBM and Google instances as on January 2017.

t2.micro11.050 GBINR 805.02
t2.small12.0100 GBINR 1,653.50
t2.medium24.0150 GBINR 3,161.09
t2.large28.0200 GBINR 5,811.46
t2.xlarge416.0250 GBINR 10,747.39
t2.2xlarge832.0300 GBINR 20,254.46
m4.large28.0100 GBINR 5,349.12
m4.xlarge416.0150 GBINR 10,552.32
m4.2xlarge832.0200 GBINR 20,593.92
m4.4xlarge1664.0250 GBINR 40,312.32
c4.large23.750 GBINR 4,753.92
c4.xlarge47.5100 GBINR 9,726.72
c4.2xlarge815.0150 GBINR 19,307.52
c4.4xlarge1630.0200 GBINR 38,104.32
A111.75 GiB40 GiBINR 1,451.48
A223.50 GiB60 GiBINR 4,644.72
A347.00 GiB120 GiBINR 11,224.73
A4814.00 GiB240 GiBINR 22,449.46
A1 v212.00 GiB10 GiBINR 2,273.98
A2 v224.00 GiB20 GiBINR 4,741.49
A4 v248.00 GiB40 GiBINR 9,966.79
A8 v2816.00 GiB80 GiBINR 20,949.61
A2m v2216.00 GiB20 GiBINR 7,644.43
A4m v2432.00 GiB40 GiBINR 16,111.36
A8m v2864.00 GiB80 GiBINR 33,819.34
C1.1x1x2511 GB25 GB (SAN)INR 1,937.28
C1.1x1x10011 GB100 GB (SAN)INR 2,727.68
C1.2x2x2522 GB25 GB (SAN)INR 3,832.96
C1.2x2x10022 GB100 GB (SAN)INR 4,623.36
C1.4x4x2544 GB25 GB (SAN)INR 7,680.00
C1.4x4x10044 GB100 GB (SAN)INR 8,470.40
C1.8x8x2588 GB25 GB (SAN)INR 15,104.00
C1.8x8x10088 GB100 GB (SAN)INR 15,894.40
C1.16x16x251616 GB25 GB (SAN)INR 29,184.00
C1.16x16x1001616 GB100 GB (SAN)INR 29,974.40
C1.32x32x253232 GB25 GB (SAN)INR 55,040.00
C1.32x32x1003232 GB100 GB (SAN)INR 55,830.40
Machine typeVirtual CPUsMemoryHard discPrice (INR)
n1-standard-113.75GB30 GBINR 1,865.60
n1-standard-227.5GB30 GBINR 3,731.20
n1-standard-4415GB30 GBINR 7,462.40
n1-standard-8830GB30 GBINR 14,925.44
n1-standard-161660GB30 GBINR 29,850.24
n1-standard-3232120GB30 GBINR 59,700.48
n1-standard-6464240GB30 GBINR 119,400.96
n1-highmem-2213GB30 GBINR 4,646.40
n1-highmem-4426GB30 GBINR 9,292.80
n1-highmem-8852GB30 GBINR 18,585.60
n1-highcpu-221.80GB30 GBINR 2,782.72
n1-highcpu-443.60GB30 GBINR 5,565.44
n1-highcpu-887.20GB30 GBINR 11,131.52

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Source:Gartner Forecasts Worldwide Public Cloud Revenue to Grow 17.5 Percent in 2019

Gartner Forecasts Worldwide Public Cloud Revenue to Grow 17.5 Percent in 2019