The cloud-computing division of Amazon.com Inc. “Amazon Web Services” has reportedly entered into deals with SAP SE and Symantec Corp. The deals are said to be worth around $1 billion, as reported by Bloomberg citing an internal memo highlighting the company’s plans to tap on the internet–based computing power and storage segment of the market.
Each deal is said to be of worth $500 million and will have a time span of five years, according to a statement issued by the company in September. The deals are in line with the company’s plans to expand its horizon. There have been reports of tech giant Microsoft competing for the Symantec deal.
Microsoft is not alone, there are many tech companies mulling to tap on the growing market of the cloud. For instance, AWS, Google, and Microsoft have all tried to lead the cloud segment of the tech market. These companies have tried their best to attract companies for collaboration on the cloud services and lead the market. The cloud services are actually intended to support companies store data and process it remotely, while developing new applications and deploying new technologies such as artificial intelligence.
AWS has reportedly had sales of $17.5 billion in 2017. The figure is out of a market estimate which was could actually be worth $30 billion in 2017. In addition, it is expected to reach $83.5 billion in 2021, as reported by Gartner Inc research firm. The company, however, has not commented on the media reports so far. Germany-based software company SAP made its plans clear for multi-cloud strategy two years back, according to the company’s spokesperson. Now SAP is aiming to maintain a hold in the cloud service market just like AWS, Google, and Microsoft. SAP was reported saying that the company believes in collected action. The company, however, denied commenting on the recent deal between AWS.
No company has come forward detailing the agreement. Symantec Chief Information Officer, Sheila Jordan mentioned that the company is not interested in providing details of the partnership. The decision to not disclose the details is in line with the company’s efforts to maintain good relations with its partnering companies. Symantec is looking forward to entering more of such deals with market leaders like Oracle, Azure and other global leaders.
The two deals will have an annual haul of $200 million which is slightly less than the 1% of annualized revenue for AWS. AWS has reported sale of $11.5 billion for the six months that ended June 30, as per a statement issued to a regulatory filing.
AWS is aggressively focusing on maintaining its leadership as it faces tough competition from its rivals. SAP, on the other hand, has been investing with tech giants Microsoft and Google for the past 12 months. The new deal will allow AWS to work on its base foundation of computing as well as storing information and on other data management tools, AI and IoT. The Symantec agreement, on the other hand, represents seven times increase in the company’s spending on AWS.