The following article, AWS Vs Azure Vs Google Cloud: How Tech Titans Fared In June Quarter's Cloud Showdown, was first published on Flag And Cross.
EThe second-quarter results of the cloud industry’s major players – Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc‘s Google (NASDAQ:GOOGL) – have unveiled significant shifts in the industry dynamics.
“Enterprise spending on cloud infrastructure services increased by $10 billion year-over-year to reach $65 billion, marking an 18% growth rate, slightly down from the 19% growth in the previous quarter,” said data from Synergy Research.
“The current economic climate has crimped some growth in cloud spending, but the market continues to expand at a healthy rate despite those short-term challenges,” said the firm.
Despite underperforming in terms of growth compared to Microsoft and Alphabet, Amazon maintained its top position. Collectively, these three giants held 65% of the market share, with second-tier providers comprising the remainder.
- Amazon’s AWS reported net sales of $22.14 billion, indicating a 12.16% YoY increase from $19.74 billion and a 3.7% rise from the previous quarter’s $21.35 billion. AWS revenue represented 16.5% of Amazon’s total revenue for the second quarter. The operating income of the cloud business stood at $5.37 billion, relative to Amazon’s total operating income of $7.68 billion.
- Microsoft’s Azure public cloud reported a 26% YoY revenue growth in the June quarter, consistent with the previous quarter’s 27% growth. The total cloud revenue reached $30.3 billion, marking a 21% YoY increase, including cloud revenues from server and Windows commercial products as well as the Office suite.
- Alphabet’s Google Cloud registered revenue of $8.03 billion, reflecting a 27.96% YoY growth and a 7.7% sequential increase from the previous quarter’s $7.45 billion. The operating income for Google Cloud was $395 million, a turnaround from the $590 million loss in the same quarter last year.
“Looking ahead, Synergy Research anticipates a marginal slowdown in cloud spending growth due to macroeconomic influences, enterprise cost-cutting measures, localized challenges in China, and the significant existing market base,” said Benzinga. However, the increasing adoption of AI use cases in cloud services is predicted to be a driving force.
Microsoft for the first time guided its Azure cloud business, with expected revenue growth of 25% to 26% in constant currency, including contributions from Azure AI Services.
Notably, Amazon introduced the AI-enhancing cloud service Bedrock and developed AI-specific chips named Inferentia and Trainium. In an interview with CNBC in early July, Jassy said the company’s in-house AI efforts will give it a real edge.
© 2023 Zenger News.com. Zenger News does not provide investment advice. All rights reserved.
Produced in association with Benzinga
Edited by Judy J. Rotich and Newsdesk Manager
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