Cloud Wars Live with Bob Evans

In today’s Cloud Wars Minute, I highlight how the rapid rise of AI — without the right security in place — could be the biggest unseen threat to your business.Highlights00:03 — IBM's new "Cost of a Data Breach" report has revealed that while AI adoption is on the rise, AI security and governance are lagging significantly. Suja Viswesan, Vice President, Security and Runtime Products at IBM, explains that the data shows a gap between AI adoption and oversight already exists, and threat actors are starting to exploit it.00:57 — 13% of organizations reported breaches involving AI models or applications, while 8% of organizations were unsure if they had been compromised in this way. Among those surveyed who experienced a breach, 97% indicated that they had no AI access controls in place. As a result, 60% of AI-related security incidents led to compromised data, and 31% resulted in operational disruptions.01:56 — In contrast, organizations that utilize AI and automation in their security operations save an average of $1.9 million in breach costs and reduce the breach life cycle by approximately 80 days. However, it's important to remember that 16% of breaches still involve AI tools, primarily in phishing or deepfake impersonation attacks. Visit Cloud Wars for more.

In today's Cloud Wars Minute, I reveal why AWS’s growth, though strong in isolation, looks sluggish compared to its peers.Highlights00:29 — We're seeing a distinct split looking at the Q2 numbers. We've got three sprinters — Microsoft, Google, and Oracle — and we've got one stroller, which is AWS. Now, also, just a quick detail: the first three companies — Microsoft, Google, and AWS — all follow the quarterly calendar pattern.01:30 — Microsoft in Q1 grew 20% to $42.4 billion. In Q2, that growth shot up from 20% to 27%, revenue for Microsoft Cloud was $46.7 billion. Google: Q1, 28% growth to $12.3 billion. Q2, that growth accelerated from 28% to 32%; revenue reached $13.6 billion. Oracle: 23% growth in what I'm calling Q1 to $6.2 billion. That growth jumped to 27% in its most recent quarter: $6.7 billion.02:39 — Oracle has guided that its fiscal 2026 RPO — that’ll end May 31 — will grow 100%. So while its cloud revenue currently isn't that big, its RPO is enormous, and its growing very fast there. Now, here's the outlier: AWS. Q1 grew 17% to $29.3 billion. Come over to Q2 — again, it was the slowest growing — 17.5% to almost $31 billion.03:21 — I think the point to look at here, though, is all four of the companies' growth accelerated from Q1 to Q2. But while the others all showed significant jumps in growth rate Q1 to Q2, Amazon — or AWS — was a modest half-point: from 17 to 17.5%.04:01 — Taking their total Q2 revenues, who got what chunk? Microsoft: 47%. Google: 13.9%. Oracle: 6.8%. AWS: 31.6%. Who is grabbing more of the new business? Who are customers — right here, right now — signing up with? Look at AWS: 31.6% of the total, but only 20.8% of the new revenue meaning that it is taking less share than its overall size and mass would indicate.05:19 — Now, AWS — I will say before I close here — it’s perhaps unfair, in the category of, you know, "life's not always fair," that AWS — almost at about a $30 billion scale — grew 17.5%. And in any other industry, at any other time, that would be lauded as absolutely stunning and fantastic. But compared to their competitors, it's not doing as well. So it's a wild time in the Cloud Wars. Visit Cloud Wars for more.

In today's Cloud Wars Minute, I break down reports of a potential $1.2 billion cloud deal between Google Cloud and ServiceNow, and what it means for the ever-intensifying battle among the cloud giants.Highlights00:04 — Google Cloud has just secured a massive cloud deal with ServiceNow worth an estimated $1.2 billion over five years. In its latest filing, ServiceNow states that it's entered into various non-cancellable agreements with cloud service providers, under which it is committed to spend an aggregate of approximately $4.8 billion through 2030 on cloud services.00:29 — However, neither Google Cloud nor ServiceNow would comment on the alleged $1.2 billion deal.00:55 —This deal, although many details are yet to emerge, serves as a great reminder of how crucial cloud infrastructure is to leading tech companies — both those providing cloud services and those that utilize them. Now, while AI has dominated the headlines in recent months — perhaps we're looking at years even — the demand for cloud infrastructure remains consistent. Visit Cloud Wars for more.

business history.Highlights00:14 — Now, any question about this greatest growth market the world has ever known was blown away last week, when Microsoft reported its fiscal Q4 earnings. And I think Microsoft's Q4 results have to be regarded as the greatest quarterly results of any company in any industry of all time.00:40 — Now, I cannot say that I have done a rigorous analysis of every quarterly report from every company in every industry there's ever been. But I will be wide open to hearing from anybody about anything that expands this. It could have grown even more, but customer demand is just swamping ability to build out data center capacity.01:38 — Microsoft Cloud used to be a nice, healthy portion of its business. It's now 61% of Microsoft's overall revenue. The total number for Microsoft's remaining performance obligation: $368 billion — a phenomenal, huge number. But it grew 37%, so you've got a combination here of scale with an incredible rate of growth here on this.03:31 — Azure in Q4, it grew 39%. If you look at the full year, Azure grew 34%. Now, revenue for Azure is over $75 billion. And the Q1 growth guidance for Azure is 37%. So again, even at these very large numbers, the growth rates are astonishing. Also looking ahead to Q1, which will end September 30, CFO Amy Hood said the CapEx is expected to be $30 billion.04:45 — We saw Google Cloud last week report very, very strong Q4. It's up 32% to $13.6 billion. Oracle's reporting just spectacular growth rates. RPO in its most recent quarter was 62%, and they're predicting 100% RPO for their fiscal year, which will end May 31 of next year. AWS numbers haven't come out yet, so I will get to them later next week. But hats off to Microsoft. Visit Cloud Wars for more.

Welcome to the Cloud Wars Minute — your daily cloud news and commentary show. Each episode provides insights and perspectives around the “reimagination machine” that is the cloud.In today’s Cloud Wars Minute, I explore the fierce competition among tech giants to attract the brightest minds in AI as the race for dominance ramps up a gear. Highlights00:03 — As the battle for AI dominance among the Cloud Wars Top 10 heats up, the race for talent has escalated. The latest executive to switch sides is Amar Subramanya, the former Vice President of Engineering at Google, who was responsible for developing the Gemini assistant and had been with the company for 16 years, is now joining Microsoft AI as Corporate Vice President for AI.00:28 — Ultimately, the stakes are so high that companies are now willing to shell out incredible sums to secure the best talent in the business. Recently ,OpenAI CEO Sam Altman stated that Meta was offering his employees $100 million signing bonuses.AI Agent & Copilot Summit is an AI-first event to define opportunities, impact, and outcomes with Microsoft Copilot and agents. Building on its 2025 success, the 2026 event takes place March 17-19 in San Diego. Get more details. 00:50 — Interestingly, this hiring drive by Microsoft comes at a time when the company has announced significant layoffs. However, this shouldn’t be viewed negatively. Instead, it serves as a poignant reminder of how the tech industry is pivoting towards AI and how these skills are becoming increasingly essential for workers in the industry.01:36 — The AI Revolution is ushering in a new wave of innovation, reminiscent of the startup culture that defined the Silicon Valley boom. Companies that wish to hire the best talent need to keep this in mind and embrace the desire of tech executives to explore new ideas and innovate beyond the confines of the copy-paste approach that has come to characterize many technologies. Visit Cloud Wars for more.

In today's Cloud Wars Minute, I share how IBM has built a $7.5 billion GenAI business in just 18 months, transforming everything from mainframes to consulting under the bold leadership of CEO Arvind Krishna.Highlights00:13 — IBM last week reported its Q2 numbers. Very impressive. I thought one of the most interesting points was that in just 18 months, IBM has built up a GenAI business with a revenue run rate of $7.5 billion. And that GenAI impact is cutting across IBM's entire, huge product portfolio, everything from mainframes to software to consulting.01:00 —This is a company that's 114 years young. And if you were to stack up all the startups or companies of any age that launched AI businesses within the last 18 months, I wonder how many of those would now have revenue of $7.5 billion. But IBM is right there, smack in the middle of that business. Krishna said GenAI's sparking growth in everything — even with mainframes.02:16 — And on the software level, Krishna said that this new rise of the AI products within IBM are helping to improve products it currently has, like Apptio, Turbonomic, and HashiCorp, adding additional value to them. Now, one area where Krishna said there could be a little bit of cannibalization is in the broad area of consulting.03:29 — This is all another sign of the remarkable job that Arvind Krishna has done in his five years now as the CEO at IBM. It's hard to recall, as well as the company's doing now and the innovation that's underway, what a mess it was five years ago when Krishna took over. IBM now has a fantastic portfolio of partnerships with many of the Cloud Wars Top 10 companies.04:30 — So again, a big turnover here in the products, the technologies that come to use, how it goes to market, and the culture that it takes out to clients to let them know: We at IBM are very happy to bring together the best of the best companies in the world to drive new value for those clients. So hats off to IBM. Very nice quarter. Visit Cloud Wars for more.

Bonnie Tinder is the founder and CEO of Raven Intelligence, an independent B2B peer review site that amplifies the voice of the customer. She focuses on software customers, consulting partners, and software vendors, and helps identify the best partners for their needs. In this episode, she joins Bob Evans to talk about the shifting landscape of enterprise consulting, the rise of AI-driven delivery models, and what these changes mean for both firms and customers navigating digital transformation.Episode 53 | Smaller, Smarter, FasterThe Big Themes:The Traditional Consulting Model Is Quietly Collapsing: The traditional consulting model, built on large teams, playbooks, and high overhead, is no longer viable in the AI-native era. The shift is not a dramatic crash but a slow erosion of outdated practices. Customers no longer accept vague deliverables, bloated staffing, and unclear pricing. Instead, they demand speed, transparency, and clear outcomes.Smaller, Nimble Firms Are Positioned to Win: AI and generative tools are leveling the playing field for smaller consultancies. Bonnie argues that boutique firms — once at a disadvantage against the scale of major global consultancies — can now compete on an equal footing due to AI’s democratization of data analysis, automation, and service delivery. These smaller firms often move faster, customize more effectively, and offer high-touch support without layers of bureaucracy.Transparency Is the New Currency of Trust: Bonnie criticizes large consulting firms for their persistent lack of transparency. Many resist public reviews, avoid accountability, and cherry-pick what gets showcased — raising red flags for discerning clients. She argues that in an era of instant data and shared experience, opacity is no longer acceptable. The future of consulting depends on a firm’s willingness to open itself to scrutiny and prove its worth.The Big Quote: “The disruption isn't necessarily a slowdown in the need for consulting. It's just the shift in how technology is getting delivered. It's in what the value of the consultant is. It's no longer building codes and the architecture as much as it is the change management and the ability to help customers make good, fast decisions."More from Bonnie Tinder:Connect with Bonnie on LinkedIn or send a message via her Acceleration Economy Analyst page. Visit Cloud Wars for more.

 In today's Cloud Wars Minute, I spotlight a powerful joint message from two of Europe’s top tech CEOs, Siemens CEO Roland Busch and SAP CEO Christian Klein, who are urging the European Union to reconsider its AI legislation.Highlights00:03 — The CEOs of Siemens and SAP have urged the EU to reconsider its AI legislation, expressing concerns that the current law hinders innovation. SAP CEO Christian Klein and Siemens CEO Roland Busch are advocating for a new regulatory framework that supports AI innovation rather than stifling it. Busch cited the EU's AI Act as the reason that Europe is falling behind.00:46 — Klein echoed these concerns. Both CEOs believe the first step should be reevaluating the existing legislation affecting AI innovators in Europe. While the AI Act is designed to ensure the safe development and deployment of AI technologies, it also risks stifling innovation.01:17 — This can lead to monopolization and hold back key innovators in the EU who are working collectively with their global partners to create what will become the cornerstones of the AI era. And there's a strong case for collaboration here. Both tech companies and legislators need to align in establishing the foundations for a thriving yet safe AI operations landscape. Visit Cloud Wars for more.

Kim Lynch is the Executive Vice President of Government, Defense, and Intelligence, Oracle. She and Bob Evans sit down to discuss how public sector organizations are accelerating digital transformation with AI, cloud, and secure infrastructure. They explore critical challenges like regulatory compliance, procurement complexity, and legacy system modernization, as well as the growing need for scalable, mission-ready solutions. Kim also introduces Oracle’s Defense Ecosystem initiative.Oracle's Government Tech EdgeThe Big Themes:Oracle’s Role in Modernizing Government Technology: Oracle is taking a central role in transforming how government agencies operate by modernizing legacy systems and aligning technology with evolving mission needs. Lynch discusses how Oracle’s next-generation cloud infrastructure is purpose-built for mission workloads, offering flexibility, scalability, and AI-ready capabilities.Defense Innovation Through Ecosystem Collaboration: A key theme from the discussion is Oracle’s launch of a dedicated defense ecosystem designed to spur innovation in mission-critical environments. Partnerships with startups and emerging tech providers help address complex defense challenges at both tactical and strategic levels. From compact “backpack” clouds to full-scale three-rack deployments, Oracle is delivering infrastructure that supports edge computing, secure communications, and global scalability.AI, Data Ownership, and Customer-Centric Cloud Strategy: Oracle is focused on unlocking AI's full potential through advanced data management. Its cloud strategy centers on customer choice, flexibility, and data sovereignty, i.e, giving agencies the ability to deploy AI tools wherever they need them, whether in public cloud, on-premises, or at the tactical edge. Oracle Cloud services come with built-in support for autonomous databases and AI-ready infrastructure, but without vendor lock-in or data movement penalties.The Big Quote: “[Coming into the defense market] is challenging, and we can be a helpful guide, because we have done it for so long. We have the classified space. We know how to work the procurement system, to be able to respond to classified procurements, [and] that's not easy for startups, to be able to understand all you need to do to be able to respond to the government's requirements. So we are sharing that knowledge and providing an umbrella ecosystem to help others be successful in the space, because we know we all win when the best technology gets in the hands of our customers."More from Oracle and Kim Lynch:Connect with Kim Lynch on LinkedIn and learn more about Oracle and defense. * Sponsored Podcast * Visit Cloud Wars for more.

In today's Cloud Wars Minute, I spotlight the 30% surge in $20M+ customers as proof of ServiceNow’s enterprise momentum.Highlights00:48 — Let me briefly touch on some of the key numbers from ServiceNow in Q2. So, the top line there: Subscription revenue was up 22.5% to $3.11 billion. Big jump in total RPO, or Remaining Performance Obligation, up 29% to almost $24 billion. I want to point out, too, the subscription revenue growth in Q2 — 22.5% — that’s a big jump from the Q1 growth rate of 19.1%.01:29 — Very nice acceleration by ServiceNow. Customers spending at least $20 million has gone up 30% year over year. ServiceNow has 528 customers spending at least $5 million with them in annual contract value. On the call, McDermott said: “People and AI together will create new business and new discoveries and will catalyze economic growth in every corner of the world.”02:30 — It's too easy to fall into the trap of saying, “Oh, AI is going to wipe out a lot of jobs.” It’s also going to create incredible new opportunities. McDermott also said he was really focusing on this term of “AI work.” He said AI work is going to be cross-functional. He said this will lead to big changes in org charts — they’re going to be very different from how they were before.03:28 —McDermott talked about the unique role that ServiceNow plays in the industry. It's not an applications company. It’s not an infrastructure company. It's an AI platform company. And it has found a way to be able to collaborate with almost all of the Cloud Wars Top 10 companies, and do so in a way, as McDermott likes to say, where for ServiceNow to win, no one else has to lose.04:31 — So, bullishness out the ears McDermott on this earnings call. Not only is the company doing well, but more importantly, as he said over and over: “Our customers are doing well and doing things they were never able to do before.” So, heady times here in the Cloud Wars. Visit Cloud Wars for more.