Cloud services lift IT outsourcing market higher than expected

Companies signed IT and business process outsourcing deals worth a record $ 9.5 billion in annual contract value, according to the quarterly outsourcing index produced Information Services Group (ISG). Traditional outsourcing contracts were up 5 percent to $ 5.8 billion, while the fast-growing as-a-service segment leapt 20 percent to $ 3.7 billion, according to ISG.

“Most conversations we’re having with clients are cloud-led,” says John Keppel, ISG president, for Europe, Middle East and Africa. “Enterprise customers are first seeking to be more cost efficient so that they can redeploy funds into digital and cloud activities.  But we’re also seeing them pivot quickly to broader digital transformation initiatives that are focused on creating a customer-first environment that is intelligent and mobile. This is a very long game and we are in the early stages at this point.”

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CIO Cloud Computing

AWS offers a lift to Amazon’s Q3 profitability

Much of Amazon’s sunny Thursday earnings report for the third quarter of 2015 can be traced back to its Web Services cloud division.

AWS brought in $ 2.09 billion in sales in the quarter ended Sept. 30, representing a jump of 78 percent over the same period last year. With an operating profit of $ 521 million — up from just $ 98 million a year earlier — the unit’s operating profit margin was 25 percent for the quarter, up from 21 percent in Q2 and 17 percent in Q1.

Overall, Amazon beat analyst expectations with $ 25.4 billion in net sales and a profit of $ 79 million, or 17 cents cents per share. Analysts polled by Thomson Reuters were expecting a loss of 13 cents per share on sales of $ 24.91 billion.

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Computerworld Cloud Computing