- AWS growths 49% in Q2
- AWS is still by far the largest public cloud vendor
- Microsoft and Google grow faster but are smaller
AWS growths 49% in Q2
Amazon reported their earnings and growth on Thursday. AWS alone grew 48.9% in Q2 this financial year, this is up 0.2% from last quarters numbers.
Financially this quarter resulted in great numbers. AWS accounts now for 11% of all Amazon’s net sales. This shows in $6.1 billion in net sales and an operating income of $1.64 billion.
The revenue is astonishing
AWS revenue for Q2 of $1.64 billion means that AWS is now responsible for 55% of Amazon’s total revenue.
Amazon is making more money alone on their cloud infrastructure service than every other part of the business combined. In fact, Amazon is more of an infrastructure company soon as it is an online retailer.
Why do Google and Microsoft grow faster?
The quarterly growth of 49% might seem to be low in comparison with Microsoft (89%) and Google (108%) but in reality, the magic of big numbers is important.
With a market share of an estimated 31%, AWS is still far ahead of both competitors.
Microsoft, with a market share of 18% and Google of 8%, combined account for only 26% of the total market. The rest is distributed between the less important players like Alicloud, Oracle and IBM.
As long as all major three players will make no sudden mistakes they keep the majority of the market share.
The race is not over
And it’s not even close to the finish line. With an estimated 80-90% of all infrastructure still on-premise, buried in data centres, the fight over market share will only intensify.
New players are always trying to get a piece of the cake and major competition looms in the Asia region with Alicloud.
The next couple years will be interesting as the market will decide who will be the market leader.