In 2016, cloud computing started to dominate many IT market segments. As a business, Synergy Research Group reported that industry revenue for the four quarters ended Sept. 30 grew 25%. Operator and vendor revenue for six segments of cloud computing reached $148 billion during that period, with spending on private clouds accounting for over half the total but spending on the public cloud growing much more rapidly. As more and more companies are taking advantage of the benefits of moving to cloud services, there is a significant need for IT professionals to gain the skills needed to successfully use and implement a wide range of cloud services, making typical vendor-focused training solutions less valuable. This NCTA program was designed to provide IT professionals with a strong foundation in cloud technologies, and overall cloud architecture and management of cloud infrastructure, as well as a solid technical background in modern web services deployment and administration.
Microsoft's third quarter was light relative to expectations, but the company said Azure delivered strong results and its commercial cloud business is on a 10 billion annual revenue run rate. The company reported earnings of 3.8 billion, or 47 cents a share, for the third quarter on sales of 20.5 billion. Non-GAAP earnings for the third quarter were 62 cents a share on revenue of 22.1 billion, down 6 percent from a year ago. Wall Street was looking for third quarter earnings of 64 cents a share on revenue of 22.09 billion. Microsoft said that a 4 cents a share one-time tax payment resulted in the earnings miss.
SAP's revenue from cloud subscriptions and support grew so quickly in 2016, the company has raised its forecasts for 2017 and 2020. Full-year cloud revenue grew 31 percent compared to a year earlier, accounting for over half of the company's revenue growth. Total revenue reached €22.1 billion (US$23.8 Profit after tax rose to €3.6 billion from €3.1 billion in 2015. SAP is keen to see more of its software business move to the cloud because, unlike traditional software licenses that bring a bump in revenue at the moment a deal is signed, it represents a predictable source of revenue.
Venerable Big Data company Teradata this afternoon pre-announced for its Q1 results, raising its outlook for profit above its prior outlook, and above what analysts have been modeling, and indicating its revenue will be higher than expected as well. The report sent Teradata shares soaring by almost 30% in late trading. The company said in prepared remarks, "During the first quarter of fiscal 2021, the Company performed strongly across all its revenue categories, resulting in total revenues being comparable to the fourth quarter of fiscal 2020, rather than lower on a sequential basis but higher than the prior year period per the previous guidance." Revenue in Q4 had been $491 million. Ergo, if this quarter's revenue is comparable, it is higher than the $449 million the Street has been modeling.
OpenStack Summit has 5,000-plus people who believe that OpenStack is the future of the cloud. OpenStack clouds are heading for multi-billion dollar revenue. The total revenue is small potatoes compared to Amazon Web Services (AWS), but the growth rate is great. Looking ahead, though, 451 believes OpenStack's future success will come from the private cloud space and in providing hybrid-cloud orchestration for public cloud integration. Better still, for OpenStack companies, 451 sees private cloud revenue exceeding public cloud by 2019.