Friday, August 1, 2014

Will Microsoft Cloud Revenues Pass Amazon Web Services Revenue?

Microsoft and IBM lead revenue growth in cloud infrastructure services, according to Synergy Research Group.

Amazon Web Services was in the second quarter 2014 still the largest single provider, but Microsoft has a blistering 164 percent revenue growth rate.

At such rates, if Microsoft can sustain it, Microsoft inevitably will pass AWS in cloud computing market share, as AWS is growing at perhaps a 49 percent rate.

Synergy Research estimates that quarterly cloud infrastructure service revenues (including infrastructure, platform, private and hybrid cloud) have reached $3.7 billion, with trailing twelve-month revenues comfortably exceeding $13 billion.

That figure excludes the value of software-driven cloud revenues, typically the largest single category of cloud services.

With the total market growing at over 45 percent, Microsoft and IBM have gained market share over the last four quarters while the share of AWS and Google is essentially unchanged from a year ago.

Total Amazon AWS revenues are now well in excess of $1 billion per quarter, with nearly all of that coming from cloud infrastructure services, Synergy Research estimates.

IBM and Microsoft also both claim quarterly cloud revenues of around $1 billion, but in their cases much of the cloud revenue comes from software, cloud-related hardware products or associated professional and technical services.

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