How Microsoft’s and Amazon’s Cloud Revenues Compare
Cloud-computing issues dominated talks at Microsoft’s (MSFT) 2019 Build software developer conference this week.
Microsoft releases new cloud tools for developers
Cloud-computing issues dominated talks at Microsoft’s (MSFT) 2019 Build software developer conference, which was held this week from May 6 to May 8 in Seattle, Washington. Ahead of the conference, Microsoft released new cloud tools aimed at developers of AI and blockchain software for industries such as retail and banking.
At the conference, Microsoft announced plans to roll out new tools that it hopes will make its Azure cloud platform more attractive for developers and businesses looking to host their applications and data on the cloud. Microsoft is doing all this in an attempt to try to take market share from its cloud competitor Amazon (AMZN).
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Microsoft has a long way to go to catch up with Amazon in terms of cloud revenue
Amazon dominates the cloud market with a global market share of ~35% as of the end of the first quarter, according to Synergy Research estimates. It generated $7.7 billion in cloud revenue in the first quarter. Microsoft doesn’t currently break out the revenue from its Azure cloud business, but Piper Jaffray analysts estimate that the business brought in ~$3.6 billion in revenue in the first quarter, according to a CNBC report. The figures show that in terms of revenue, Microsoft’s Azure cloud business is currently less than half the size of Amazon’s cloud business.
Microsoft’s share of the global cloud market was estimated to be ~15% in the first quarter. Google (GOOGL), IBM (IBM), and Alibaba (BABA) held ~7.0%, 6.0%, and 5.0% of the global cloud market, respectively, in the first quarter.