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August 23, 2016

Companies with Call Center Software Should Note - Amazon, Microsoft, Salesforce to Raise Cloud Expenditures as Others Decrease, Goldman Says (NASDAQ:AMZN)

Amazon (NASDAQ:AMZN), Microsoft (MSFT) and Salesforce.com (CRM) will grow their capital expenditures on cloud platforms this year while other companies decrease theirs, Goldman Sachs said in a report on Monday. Amazon is expected to grow cloud capex 39% year-over-year in 2016 to $6.4 billion, excluding leases, Goldman analysts said. Microsoft will grow capex, also excluding leases, by 33% to $8.7 billion. This is important information to be noted by companies with call center software.

Salesforce will improve capital expenditures on cloud services by 29% to $366 million, despite plans to rely heavier on Amazon Web Services, the report said. While the three companies are growing their capital expenditures, Oracle (ORCL), Rackspace (RAX) and Alphabet's Google (GOOG) likely will decrease investments. Oracle's capex is expected to fall 24% to $1.2 billion in 2016, Rackspace is expected to lower expenditures and Google spending will fall 2% to $8.7 billion, Goldman said. Still, Google will expand geographically. "During Alphabet's cloud event in March, the company announced that it would add 12 regions by the end of (2017), including US West and Asia East - Japan by the end of 2016," Goldman said. "This compares to the four regions Google had (US Central, US East, Asia East, Europe West) prior to the announcement."

About 1.02 million shares traded hands. Amazon.com, Inc. (NASDAQ:AMZN) has risen 32.20% since January 19, 2016 and is up trending. It has outperformed by 16.19% the S&P500.

Amazon.com, Inc. offers a range of products and services through its Websites. The company has a market cap of $363.02 billion. The Company's products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It has a 190.4 P/E ratio. The Firm has three divisions: North America, International and Amazon Web Services . Call center software companies are noting the changes.