So within that market, let\u2019s take a look at the AWS vs Azure vs Google Cloud market share breakdown and what each cloud provider\u2019s reports shared.<\/p>\n\n\n\n
AWS <\/h2>\n\n\n\n![\"\"](\"https:\/\/p2zk82o7hr3yb6ge7gzxx4ki-wpengine.netdna-ssl.com\/wp-content\/uploads\/aws-q121.png\")
<\/a><\/figure><\/div>\n\n\n\nAmazon reported<\/a> Amazon Web Services (AWS) revenue of $13.5 billion for Q1 2021 \u2013 which exceeded analyst predictions of $13.1 billion. This is compared to $10.33 billion for Q1 2020. AWS revenue grew 32% in the quarter, accelerating from 28% growth in the fourth quarter. This quarter, AWS\u2019s revenue accounted for 12% of Amazon\u2019s total revenue \u2013 and nearly 47% of Amazon\u2019s overall operating income. AWS continues to bolster the company as a whole with its profitability.<\/p>\n\n\n\nThis quarter, AWS announced that former AWS executive and current head of Salesforce Tableau Adam Selipsky will run AWS, replacing Andy Jassy as he moves up to head all of Amazon.<\/p>\n\n\n\n
Amazon\u2019s CFO, Brian Olsavsky, said on the earnings call with investors, \u201cDuring COVID, we\u2019ve seen many enterprises decide that they no longer want to manage their own technology infrastructure,\u201d he said. \u201cThey see that partnering with AWS and moving to the cloud gives them better cost, better capability and better speed of innovation. We expect this trend to continue as we move into the post pandemic recovery. There\u2019s significant momentum around the world, including broad and deep engagement across major industries.\u201d<\/p>\n\n\n\n
And of course, much of the growth in public cloud comes from net-new workloads, not just those migrated from on-premises infrastructure. We\u2019re curious to see how this trend continues. <\/p>\n\n\n\n
Azure<\/h2>\n\n\n\n
While Amazon specifies AWS revenue, Microsoft only reports on Azure\u2019s growth rate. That number is 50% revenue growth over the previous quarter \u2013 which is faster than the 46% growth analysts expected. This time last year, growth was reported at 59%. You may see headlines touting that \u201cAzure growth rates are slowing\u201d, comparing those revenue growth percentages. However, the metric is of questionable value as Azure continues to increase revenue at this enormous scale.<\/p>\n\n\n\n
Here are the revenue numbers Microsoft does report<\/a>. Azure is under the \u201cIntelligent Cloud\u201d business, which grew 23% to $15.1 billion. The operating group also includes server products and cloud services (26% growth). <\/p>\n\n\n\nMicrosoft sees its cloud growth as fundamental to its success. CEO Satya Nadella said, \u201cOver a year into the pandemic, digital adoption curves aren\u2019t slowing down. They\u2019re accelerating, and it\u2019s just the beginning. We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform.\u201d<\/p>\n\n\n\n
The lack of specificity around Azure frustrates many pundits as it simply can\u2019t be compared directly to AWS, and inevitably raises eyebrows about how Azure is really doing. Of course, it also assumes that IaaS is the only piece of \u201ccloud\u201d that\u2019s important, but then, that\u2019s how AWS has grown to dominate the market. <\/p>\n\n\n\n
Nonetheless, Microsoft\u2019s cloud business is clearly generating success for the company. Intelligent Cloud delivered the highest operating income of all segments this quarter at $6.4 billion, which is 37.7% of total consolidated operating income. <\/p>\n\n\n\n
Google Cloud<\/h2>\n\n\n\n
This quarter, Google Cloud reported revenue of $4.047 billion, an increase of 46% year-over-year. Operating losses were $974 million, compared to losses of $1.73 billion one year previously. <\/p>\n\n\n\n
Note that the Google Cloud unit includes not only Google Cloud Platform but also Google Workspace (formerly G Suite). <\/p>\n\n\n\n
Like the other giants, Alphabet highlighted its cloud growth. Google and Alphabet CFO Ruth Porat said, \u201cWe\u2019re very pleased with the ongoing momentum in Google Cloud, with revenues of $4.0 billion in the quarter reflecting strength and opportunity in both GCP and Workspace.\u201d<\/p>\n\n\n\n
Porat also said that Google Cloud Platform (GCP)\u2019s revenue growth was once again \u201cmeaningfully above cloud overall.\u201d<\/p>\n\n\n\n
Alibaba Cloud<\/h2>\n\n\n\n
Alibaba cloud revenue grew 37% year-over-year to $2.6 billion. They mention that \u201cthe slower revenue growth during the quarter was primarily due to revenue decline from a top cloud customer in the Internet industry. This customer, which has a sizeable presence outside of China that used our overseas cloud services in the past, has decided to terminate the relationship with respect to their international business due to non-product related requirements.\u201d They believe their remaining cloud customers are sufficiently diversified to prevent such a large impact from a single customer in the future.<\/p>\n\n\n\n
Cloud Computing Market Share Breakdown \u2013 AWS vs. Azure vs. Google Cloud<\/h1>\n\n\n\n
When we originally published this blog in 2018, we included a market share breakdown<\/a> from analyst Canalys, which reported AWS in the lead owning about a third of the market, Microsoft in second with about 15 percent, and Google sitting around 5 percent.<\/p>\n\n\n\n
<\/a><\/figure><\/div>\n\n\n\nAmazon reported<\/a> Amazon Web Services (AWS) revenue of $13.5 billion for Q1 2021 \u2013 which exceeded analyst predictions of $13.1 billion. This is compared to $10.33 billion for Q1 2020. AWS revenue grew 32% in the quarter, accelerating from 28% growth in the fourth quarter. This quarter, AWS\u2019s revenue accounted for 12% of Amazon\u2019s total revenue \u2013 and nearly 47% of Amazon\u2019s overall operating income. AWS continues to bolster the company as a whole with its profitability.<\/p>\n\n\n\n This quarter, AWS announced that former AWS executive and current head of Salesforce Tableau Adam Selipsky will run AWS, replacing Andy Jassy as he moves up to head all of Amazon.<\/p>\n\n\n\n Amazon\u2019s CFO, Brian Olsavsky, said on the earnings call with investors, \u201cDuring COVID, we\u2019ve seen many enterprises decide that they no longer want to manage their own technology infrastructure,\u201d he said. \u201cThey see that partnering with AWS and moving to the cloud gives them better cost, better capability and better speed of innovation. We expect this trend to continue as we move into the post pandemic recovery. There\u2019s significant momentum around the world, including broad and deep engagement across major industries.\u201d<\/p>\n\n\n\n And of course, much of the growth in public cloud comes from net-new workloads, not just those migrated from on-premises infrastructure. We\u2019re curious to see how this trend continues. <\/p>\n\n\n\n While Amazon specifies AWS revenue, Microsoft only reports on Azure\u2019s growth rate. That number is 50% revenue growth over the previous quarter \u2013 which is faster than the 46% growth analysts expected. This time last year, growth was reported at 59%. You may see headlines touting that \u201cAzure growth rates are slowing\u201d, comparing those revenue growth percentages. However, the metric is of questionable value as Azure continues to increase revenue at this enormous scale.<\/p>\n\n\n\n Here are the revenue numbers Microsoft does report<\/a>. Azure is under the \u201cIntelligent Cloud\u201d business, which grew 23% to $15.1 billion. The operating group also includes server products and cloud services (26% growth). <\/p>\n\n\n\n Microsoft sees its cloud growth as fundamental to its success. CEO Satya Nadella said, \u201cOver a year into the pandemic, digital adoption curves aren\u2019t slowing down. They\u2019re accelerating, and it\u2019s just the beginning. We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform.\u201d<\/p>\n\n\n\n The lack of specificity around Azure frustrates many pundits as it simply can\u2019t be compared directly to AWS, and inevitably raises eyebrows about how Azure is really doing. Of course, it also assumes that IaaS is the only piece of \u201ccloud\u201d that\u2019s important, but then, that\u2019s how AWS has grown to dominate the market. <\/p>\n\n\n\n Nonetheless, Microsoft\u2019s cloud business is clearly generating success for the company. Intelligent Cloud delivered the highest operating income of all segments this quarter at $6.4 billion, which is 37.7% of total consolidated operating income. <\/p>\n\n\n\n This quarter, Google Cloud reported revenue of $4.047 billion, an increase of 46% year-over-year. Operating losses were $974 million, compared to losses of $1.73 billion one year previously. <\/p>\n\n\n\n Note that the Google Cloud unit includes not only Google Cloud Platform but also Google Workspace (formerly G Suite). <\/p>\n\n\n\n Like the other giants, Alphabet highlighted its cloud growth. Google and Alphabet CFO Ruth Porat said, \u201cWe\u2019re very pleased with the ongoing momentum in Google Cloud, with revenues of $4.0 billion in the quarter reflecting strength and opportunity in both GCP and Workspace.\u201d<\/p>\n\n\n\n Porat also said that Google Cloud Platform (GCP)\u2019s revenue growth was once again \u201cmeaningfully above cloud overall.\u201d<\/p>\n\n\n\n Alibaba cloud revenue grew 37% year-over-year to $2.6 billion. They mention that \u201cthe slower revenue growth during the quarter was primarily due to revenue decline from a top cloud customer in the Internet industry. This customer, which has a sizeable presence outside of China that used our overseas cloud services in the past, has decided to terminate the relationship with respect to their international business due to non-product related requirements.\u201d They believe their remaining cloud customers are sufficiently diversified to prevent such a large impact from a single customer in the future.<\/p>\n\n\n\n When we originally published this blog in 2018, we included a market share breakdown<\/a> from analyst Canalys, which reported AWS in the lead owning about a third of the market, Microsoft in second with about 15 percent, and Google sitting around 5 percent.<\/p>\n\n\n\nAzure<\/h2>\n\n\n\n
Google Cloud<\/h2>\n\n\n\n
Alibaba Cloud<\/h2>\n\n\n\n
Cloud Computing Market Share Breakdown \u2013 AWS vs. Azure vs. Google Cloud<\/h1>\n\n\n\n
![\"\"](\"https:\/\/p2zk82o7hr3yb6ge7gzxx4ki-wpengine.netdna-ssl.com\/wp-content\/uploads\/q12021-canalys-1024x576.jpeg\")
<\/a><\/figure><\/div>\n\n\n\n