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Amazon's 3Q17 Earnings Review: Whole Foods, the Cloud, and TWX

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Part 2
Amazon's 3Q17 Earnings Review: Whole Foods, the Cloud, and TWX PART 2 OF 15

Is Amazon Fending Off Its Cloud Competition?

Amazon is still the industry leader

According to Synergy Research Group, Amazon (AMZN) is the de facto cloud computing leader, controlling well over a third of the global market. In this leading position, however, Amazon has become the target of rival cloud providers that seek to garner market share from it.

Is Amazon Fending Off Its Cloud Competition?

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AWS sales increased 42% YoY

In 3Q17, Amazon’s cloud computing division, Amazon Web Services (or AWS), reported growth of 42.0% YoY to record revenues of $4.6 billion. IBM (IBM) and Oracle (ORCL) reported cloud revenue growth of 20% YoY to $4.1 billion and 51% YoY to $1.5 billion, respectively, in their quarters corresponding to Amazon’s 3Q17.

Microsoft (MSFT) reported that its Intelligent Cloud segment, which includes Azure, grew 14.0% YoY to record revenues of $6.9 billion in fiscal 1Q18 (September quarter). Azure’s sales grew 90% YoY, but its actual dollar sales weren’t disclosed. Azure is Microsoft’s cloud operation that closely competes with Amazon’s AWS.

Alphabet’s (GOOGL) Google reported growth of 40.0% YoY in its segment where Google Cloud sales are bundled. This growth translated to revenues of $3.4 billion.

Looking at the above metrics, it appears that despite its large size, AWS continues to grow at a pace that its main rivals are struggling to match.

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