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Amazon's AWS Vs. Microsoft Azure Vs. Google Cloud: How The Cloud Race Shaped Up In Q3

Benzinga2022-10-30

ZINGER KEY POINTS

  • Alphabet has seen the fastest revenue growth among Cloud vendors.
  • Amazon's AWS, though the top vendor, has seen slowing revenue growth.

Big tech earnings mostly surprised to the downside, prompting market analysts to comment that the market leadership is moving away from techs. Although Alphabet, Inc.’s core search business and YouTube experienced weakness, its Cloud business was touted as a bright spot.

Here’s a look at how the lucrative Cloud business of each of the three major U.S. vendors fared in the third quarter:

AWS: Amazon, Inc.'s Cloud business, christened as Amazon Web Service or AWS, raked in sales of $20.54 billion in the quarter. This represented a 27.4% year-over-year increase and a 4.1% quarter-over-quarter increase.

The segment contributed $5.4 billion of Amazon’s operating income, helping to offset the operating losses collected by the company’s core eCommerce business.

AWS accounted for 16.2% of Amazon’s total revenue.

"Our teams across AWS continue to work relentlessly to expand that breadth and depth, including recent launches of new EC2 machine learning training instances in AWS IoT fleet-wise,” CFO Brian Olsavsky said on the third-quarter earnings call.

Google Cloud: Alphabet’s Google Cloud fetched the company $6.87 billion in revenue, up 37.6% year-over-year and 9.4% sequentially. The division, however, generated an operating loss of $699 million.

Alphabet derives just about 10% of its revenue from the Cloud business.

CEO Sundar Pichai said on the earnings call that Cloud is a key priority for the company, adding that long-term trends that are driving cloud adoption continue to play an even stronger role during uncertain times.

Microsoft Azure: Software giant Microsoft Corp. said its Cloud revenue rose 24% year-over-year to $25.7 billion. In constant currency, the growth was a steeper 31%.

Revenue from its Intelligent Cloud business was up 20% to $20.3 billion, driven by 35% revenue growth at Azure and other cloud services. Azure is Microsoft’spublic cloud computing platform.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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Comment34

  • MIe
    ·2022-10-31
    Aws cloud upside Google cloud upside 
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  • Targarean
    ·2022-10-31
    Take any pick of the 3. Cloud will be the future of tech. Google seems the cheapest of the 3 stocks after its stock split but MSFT and AMZN are great companies too
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    • Targarean
      Long term buy
      2022-10-31
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  • MLFL
    ·2022-10-30
    Hi 👋 
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  • SPOT_ON
    ·2022-10-30
    Ok
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  • ZTPang
    ·2022-10-30
    like
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  • KLC
    ·2022-10-30
    Google 👍
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  • i am ok
    ·2022-10-30
    ok
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    • ZTPang
      like
      2022-10-30
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    • i am ok
      ok
      2022-10-30
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  • RK888
    ·2022-10-30
    👍
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    • RK888
      👍
      2022-10-30
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  • Sorrie2u
    ·2022-10-30
    Reply
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  • sunflower19
    ·2022-10-30
    Ok tks
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  • ericbqlee
    ·2022-10-30
    🙂
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  • HF133
    ·2022-10-30
    Ok
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    • DesmondAn
      nice
      2022-10-30
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    • Sorrie2u
      ok
      2022-10-30
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    • HF133
      ok
      2022-10-30
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  • AudTKH
    ·2022-10-30
    K
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  • jannn
    ·2022-10-30
    [What] 
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    • HOTBE
      Yup
      2022-10-30
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  • JY_02222
    ·2022-10-30
    Come
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  • KLC
    ·2022-10-30
    Amazon 💪
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  • J999
    ·2022-10-30
    Nice
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    • y2k
      nice share thanks
      2022-10-30
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  • GggSlimeR
    ·2022-10-30
    Great one Thanks & Do not like my comment 
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    • KLC
      👍
      2022-10-30
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  • tplian
    ·2022-10-30
    Ok
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  • patrickLai
    ·2022-10-30
    Woah 
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