Google Cloud vs Azure YoY growth trends
1. $Alphabet(GOOG)$ $Alphabet(GOOGL)$ Google Cloud at a ~$37B run rate growing 26% (not constant currency). Google cloud includes GCP and GSuite
Quarterly YoY growth trends in below chart, this quarter came in below expectations.
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Below is an estimate of net new ARR added over the last few quarters
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YoY growth trends in net new ARR per quarter
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2. $Microsoft(MSFT)$ Azure at a ~$74B run rate growing 28% constant currency
Quarterly YoY growth trends below. Also shown estimated growth ex AI services. Not all software co's have the AI accelerant Microsoft does!
In last 3 quarters AI Services run rate has gone ~$500m > ~$2B > ~$4B
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Below is an estimate of net new ARR added over the last few quarters. ~$2B of net new ARR was AI Services this quarter
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YoY growth trends in net new ARR per quarter
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53k Azure AI customers today, 1/3 of which are new to Azure customers
Azure AI was responsible for ~6% of growth in the quarter
1.3m GitHub copilot subscribers up 30% QoQ
Copilot is an incremental $10 / user / month which implies Copilot alone is now a ~$156m ARR businesses
How long until it's $1B ARR?? Very few software companies ever get to $1B ARR. Copilot as an add on seems to be on that path
https://twitter.com/jaminball/status/1752467342335045944
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- ALDINGENTOD·02-01godLikeReport