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.
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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.
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.