Synergy Research

Think of it as the ultimate offload model.

One of the geniuses of the cloud – perhaps the central genius – is that a big company that would have a large IT budget, perhaps on the order of hundreds of millions of dollars per year, and that has a certain amount of expertise creates a much, much larger IT organization with billions of dollars – and with AI now tens of billions of dollars – in investments and rents out the vast majority of that capacity to third parties, who essentially allow that original cloud builder to get their own IT operations for close to free. …

We have always been convinced, and remain so, that there is no way that the largest organizations in the world will move their computing to one of the big cloud builders. …

There is some uncertainty about global IT spending in the broadest sense in 2023 and beyond, and but Synergy Research, which watches the cloud segment like a hawk, is very bullish on cloud spending in its various guises. …