Yesterday this site looked at the telcos’ battle to diversify in a world of declining sales and margins.
One of the areas where telecommunications providers failed dismally was in data centres – what should have been a relatively easy area for them to move into turned out to be an industry that was culturally alien to them.
This week showed how costly that failure was for the telcos as AWS, Microsoft and Google all reported huge growth in their cloud revenues. Microsoft’s cloud business nearly doubled in value while AWS grew almost 50%.
While for Google, the company is still grossly dependent upon advertising for its profits, at least their cloud services are the fastest growing part of their business. Their struggle to diversify is beginning to show some results.
The telcos though can only look and wonder at what might have been.