Fastest-growing cloud vendor
Google’s CEO, Sundar Pichai, discussed the company’s cloud computing business during Alphabet’s (GOOGL) recent earnings call. According to Pichai, Google Cloud Platform (or GCP) is the fastest-growing major public cloud vendor in the world.
Microsoft’s cloud market share grew 3.0%
According to Synergy Research, Microsoft was the fastest-growing cloud vendor in 2017, with its share of global cloud computing market expanding 3.0% in the year. Google and Alibaba grew their market share by 1.0% each. AWS’s market share expanded 0.5% in 2017. IBM (IBM) lost 0.5% of its global cloud market share in 2017.
AWS grew 45% to become five times bigger than GCP
AWS is cited as the world’s largest cloud vendor, commanding over a third of the global market, as we can see in the chart above. AWS grew 45.0% year-over-year in 4Q17 to bring in $5.1 billion in revenues.
If Google’s cloud business is earning $1.0 billion in revenues per quarter, this indicates that Google cloud is currently just a fifth of Amazon’s cloud business. This indicates that Google and Alphabet have a long way to catch up to the market leader.
However, Google executives think that it is only a matter of time before Google closes the gap with AWS and other rivals in the cloud industry, as GCP is growing faster than the competition.