Despite a slight decline in revenue, AWS’ revenue in the cloud business is rising to over $100 billion a year.
Impressions – valid for articles published since 2018: 1.238
Cloud services revenue grew nearly 40% in the second quarter of 2019, with AWS and Microsoft Azure accounting for half of the market.
According to Synergy Research Group, in which AWS holds 33% and Microsoft 16%, the cloud sector as a whole will depend on $100 billion a year in global revenues.
AWS recorded a slight decline in net revenue with a growth of 37% compared to 39% in the same period of 2018. Although it increased from $6,105 million to $8,381 million compared to the second quarter of 2018, it is the first time in more than five years that net revenue growth has been below 40%.
But AWS not only continues to concentrate a large portion of Amazon’s total revenue (13%), but also remains larger than the four vendors behind it, Microsoft, Google, Alibaba, and IBM combined.
Cloud market: AWS and Azure wins the market
“If we look at quarterly spending on cloud services over the last twelve quarters, we see a linear growth profile,” said John Dinsdale, senior analyst at Synergy, adding: “Amazon maintains its leadership position in the market, although Microsoft’s growth is also remarkable. In early 2016, Microsoft had less than a quarter the size of Amazon in this market, while today it is almost half the size. These two cloud providers alone receive half of all cloud infrastructure services revenue, which is impressive for such a fast-growing and strategically important market.
Microsoft’s public cloud computing platform, Azure, has firmly established itself as the second-largest cloud provider with revenue growth of 63% in recent quarters.
Google Cloud, which holds 8% of the total market, generates $8 billion annually, according to the latest results of parent company Alphabet. The company also plans to invest in its sales force to close the gap between Microsoft and AWS.
IBM recently reported a decline in revenue, partly due to the acquisition of Red Hat, but analysts understand that the open-source specialist is a large part of IBM’s cloud strategy.
Alibaba, Salesforce, Oracle, Tencent, and Rackspace together accounted for 14% of the remainder of the market.