1.000.000.000.000 & THE PERFORMANCE PYRAMID

    The era of BIG numbers is continuing. In my June 2018 blog, I already wrote about big numbers and big data, mentioned Microsoft’s market capitalization and predicted that the Azure Cloud financial figures probably would look great.

    It was not so difficult to predict that, and it was even an understatement as headlines proved after Microsoft announced their financial results. Here is just one example:

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    On 12 July, Microsoft market capitalization exceeded $800bn for the first time.  But there is always big, bigger and biggest. 1.000.000.000.000 is the number we saw passing by in August and September, the market cap of both Apple and Amazon reaching those highs. Clearly, Apple won the race to reach $1 trillion in market capitalization. Mad Money according to CNBC's Jim Cramer. Well, give me a piece of that mad money and I would be more than happy with it.

    These market cap figures are larger than the national income of the majority of countries in the world and the respective CEO’s are potentially more powerful than most political leaders of these countries. These companies have become so big that raises questions. Do they cause antitrust issues? Is there enough regulation in place to make sure they don’t hold too much economic and political power? For this money, you can buy 15 of the most expensive companies in Germany, including SAP. BTW, is it a coincidence that the 6 most expensive companies are all cloud companies? Oracle, IBM, and SAP are following as software vendors and service providers. There is a nice clickable visual on this website.

    The Dynamics growth figures were even higher than I expected, and Microsoft’s revenue is more diversified than any other cloud company.

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    "The law of large numbers is kicking in," Evercore ISI analyst Kirk Materne told CNBC in an interview, referring to Azure's growth. "The base is getting bigger. It is growing faster than Amazon Web Services did when it was at a similar size. This is probably a $9 billion business growing at more than 80 percent."

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    Read more of this insightful blog by Eric Veldkamp.

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