Microsoft, Google and Amazon Increase Public Cloud Revenue

There is no slowdown in sight for the big three public cloud providers as they all reported growth again in the third quarter of calendar 2021.

Demand for public cloud services continues to grow, as evidenced by the strong revenue increases reported by Microsoft, Google and Amazon in their earnings calls this week. The momentum and growth of public cloud providers continues from earlier this year when the big three revealed strong sales amid the ongoing COVID-19 pandemic.

Satya Nadella, CEO of Microsoft, succinctly stated during his company’s earnings call why he sees continued cloud growth in the coming years: “Digital technology is a deflationary force in an inflationary economy.”

Microsoft Azure Cloud Reaches New Highs

On October 26, Microsoft reported its first quarter fiscal year 2022 revenue, culminating in its cloud services.

Microsoft reported total revenue of $45.3 billion for the quarter, with Microsoft cloud-related services representing $20.7 billion. Microsoft’s cloud revenue grew 36% year-over-year as demand has not slowed down.

Microsoft includes its software-as-a-service (SaaS) business as part of Microsoft’s cloud revenue. Looking specifically at Azure cloud infrastructure-as-a-service, it grew even faster, at a rate of 50% year-over-year.

“The case for digital transformation has never been more urgent or clearer,” says Nadella.

Google sees Multi-Cloud as a differentiator

Google’s parent company, Alphabet, reported its third-quarter fiscal year 2021 earnings on October 26, and its cloud business continued to show strong growth.

For the quarter, Google Cloud revenue was $5 billion, a 45% year-over-year gain. Google has been busy in recent weeks announcing a range of new services on its Google Cloud Next 21 event on October 12. One of the new services is the Google Distributed Cloud, which provides compute resources for both edge and hybrid deployments.

“Multi-cloud remains a differentiator,” said Google CEO Sundar Pichai during Alphabet’s earnings call. “I think customers are looking for it more and more, and we’ve embraced it from the start.”

Amazon Web Services Still the King of the Public Cloud

Amazon reported its earnings for the third quarter of fiscal year 2021 on October 28, continuing its leadership in the public cloud with its Amazon Web Services (AWS) division.

For the quarter, AWS had revenue of $16.11 billion.

“We saw continued strong usage and revenue growth in AWS, with revenue up 39% year-over-year in the third quarter, driven by a broad base of services and customers,” said Amazon CFO Brian Olsavsky during the company’s earnings call. .

It was a busy quarter for AWS as it announced a series of service updates. Among the updates are the new types of DL1 compute instances designed to accelerate machine learning use cases.

During the quarter, Amazon also launched new managed monitoring services, including: Prometheus and Grafana data visualization services.

“We also continue to see strong interest in the rapid adoption of our Graviton2 processors with custom silicon and AWS design, enabling customers to offer up to 40% better value for money than current X86 processors,” said Olsavsky. “Moving to Graviton2 means little to no code changes, allowing customers to quickly and easily migrate their workloads to access the best price/performance in Amazon EC2.”


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