By Elaina Arce
Q1 earnings are in for the ‘big three’ cloud providers and you know what that means – it’s time for an AWS vs Azure vs Google Cloud market share comparison. Let’s take a look at all three providers side-by-side to see where they stand.
Are Azure and Google catching up to AWS?
As they’ve been known to do, Amazon, Google, and Microsoft all released their quarterly earnings reports around the same time over this past week, giving us an opportunity to look at the big picture. Before we dive in, let’s take a look at the headlines for the media interpretation of the AWS vs Azure vs Google Cloud Market Share:
- Amazon’s Last Chance: If It Doesn’t Catch #1 Microsoft In The Cloud In Q1, It Never Will
- Amazon cloud revenue jumps 49 percent in first quarter
- Alphabet shares seesaw after earnings beat
- Cloud Market Spirals As Big Players Continue Results Weigh In
Here’s what the quarterly earning reports tell us:
- AWS, the longest-standing cloud provider of the three, has managed to maintain its growth rate with a 49 percent increase to $5.44 bn for the quarter.
- Meanwhile, Microsoft is picking up speed and picking up share. While Microsoft did not break down cloud profits for Azure specifically, they reported that Azure alone made impressive revenue growth at 93 percent. This was slightly down from 98 percent growth last quarter.
- Microsoft’s Intelligent Cloud division as a whole, which includes Azure, went up 17 percent to $7.9bn.
- Alphabet, Google’s parent company, released quarterly earnings for Google, but did not break down any cloud revenue. Reported revenue growth was at 26 percent year-over-year to $31.16 billion in Q1. In Q1 of last year, Google revenue growth was at 22% between Q1 of 2016 and Q1 of 2017.
- Canalys ranked the three providers in terms of market share, with AWS in the lead owning about a third of the market, Microsoft in second with about 15 percent, and Google sitting around 5 percent:
In the case of AWS vs Azure vs Google Cloud market share – AWS still has the lead.
AWS is maintaining their lead and holding the lion’s share of the market. Could Amazon’s head start in the cloud business still have something to do with it? Jeff Bezos seems to think so:
“AWS had the unusual advantage of a seven-year head start before facing like-minded competition. As a result, the AWS services are by far the most evolved and most functionality-rich.” Whether it’s true or not, it says something that Microsoft and Google aren’t breaking down their cloud numbers just yet.
Nonetheless, customers do want a choice when it comes to cloud providers. Yes, AWS is still seeing big growth, but Microsoft has sustained high levels of revenue with Azure, narrowing the gap, and suggesting that they might be the cloud provider to give Amazon a run for its money.
Read more here:: B2CMarketingInsider