Microsoft, Google rule AI vendor market for enterprises

Group 1 - Major tech companies like Microsoft and Google have invested billions in AI infrastructure and capabilities, yet enterprises still struggle to realize AI's value as 2025 approaches [3][4] - A report from Rimini Street indicates that C-suite executives do not expect to see returns on AI investments exceed 50% in the next six years, with only a projected 27% return in the next one to two years [4] - Two-thirds of businesses are currently stuck in generative AI pilot phases, facing challenges in transitioning these tools into production, with nearly 97% of respondents unable to demonstrate the technology's business value [5] Group 2 - Enterprises will encounter rising costs as hyperscalers enhance their products with AI capabilities, with Microsoft planning to increase pricing for Microsoft 365 subscriptions starting July 1, 2026, due to expanded AI availability [6] - Salesforce has also announced price increases for its products, including Agentforce and Slack, to facilitate easier access to AI tools [6] - IDC's research director emphasizes that while price increases are expected as AI becomes integrated into enterprise products, they must be accompanied by transparent and measurable business value [7] Group 3 - Microsoft leads in enterprise AI due to its extensive partner and platform ecosystem, while Google excels in enterprise agentic AI with its integrated AI agent technology and scalable support [8] - Gartner's report identifies current leaders across various AI technology sectors, including cybersecurity, where Palo Alto Networks is recognized as a top performer, and OpenAI is noted for its innovation in large language models [8] - The determination of leading companies is based on their technical capabilities, customer implementations, customer base, business models, partnerships, and ecosystem [8]