The global cloud service market has gathered many top players and the competition is extremely fierce. Overall, the global market has formed a top four pattern. In this post, we are discussing the analysis of four cloud giants in the person of Amazon, Microsoft, Google, and Alibaba Cloud. These companies occupy over 60% of the global market.
According to the latest data from the authoritative market research agency Canalys: The global cloud infrastructure services market size was US$31 billion in the first quarter of 2020, and Amazon AWS had a 32% share, ranking first in the world. Microsoft Azure ranks second with a global market share of 17%, and Google Cloud and Alibaba Cloud both hold 6% market share and rank third. Read in to further digest our
Analysis of Four Cloud Giants; How do They Match up Against One Another?
The above four cloud giants have accumulated 61% of the global market share, and the market head effect is becoming more obvious. Among them, Amazon AWS cloud service leads the world.
In addition, it can be seen from the data disclosed in the Amazon annual report that AWS is the global leader. In 2019, the AWS revenue scale was 35 billion US dollars. At the same time, it is also the core profit source of Amazon. In 2019, AWS’s operating profit was as high as US$9.2 billion, accounting for 80% of the total profit.
Amazon
Entering 2020, Amazon’s cloud services continue to maintain strong growth, and the revenue scale exceeded the tens of billions of dollars mark for the first time in a single quarter. This heralds a new milestone for cloud services.
In the first quarter of 2020, revenue from AWS cloud services was the same at US$ 10.2 billion, an increase of 33% from the same period last year. In my opinion, AWS has become the choice of millions of customers around the world with its rich cloud applications such as the Internet of Things, artificial intelligence, and machine learning.
As early as 2015, Amazon released the AWS IoT service, providing a full range of IoT services. Since then, it has released a number of machine learning and artificial intelligence-related services. One of such is Amazon SageMaker machine learning tools, which are favored by developers around the world.
Globally, based on AWS cloud services, customers in various industries and types are using Amazon SageMaker to tap the potential of data to promote intelligent transformation and upgrading.
Today, AWS has become an important global infrastructure. More and more enterprises choose to use AWS to start cloud transformation so that AWS will continue to maintain steady growth. This year’s revenue is expected to reach 45 billion US dollars. AWS’s revenue scale this year is expected to reach $50 billion US dollars. This revenue scale is unattainable for other cloud vendors.
For Amazon, it is not only the world’s largest e-commerce giant but also the world’s largest cloud service provider, making it the world’s most valuable investment company. Despite the global impact of the epidemic in 2020, the market value of Amazon has reached new highs this year. As of June 12, the market value reached as high as 127 million US dollars, a cumulative increase of 38% this year.
Microsoft
In the global cloud service market, Amazon AWS faces strong competition from Microsoft, and Microsoft Azure cloud service market share has steadily increased, and the growth rate is also higher than that of Amazon. Canalys data shows that in the first quarter of 2020, AWS increased by 33% year-on-year, and Microsoft Azure increased by 59% year-on-year.
In addition, Microsoft Azure’s market share increased from 15% in the first quarter of 2019 to 17% in the first quarter of 2020, while AWS market share declined slightly from 33% to 32%.
After the transformation of cloud services, Microsoft has made the elephant that has been sleeping for many years rise again. Today, the smart cloud is Microsoft’s largest business segment.
In the third fiscal quarter of the fiscal year 2020, Microsoft’s total revenue was $35 billion, while revenue from the intelligent cloud sector was $12.281 billion, accounting for 35% of total revenue. Because of the rapid growth of cloud services, Microsoft’s overall revenue has grown steadily, and strong revenue and profits have made investors favored in the capital market.
In the turbulent capital market, Microsoft has rebounded sharply since April, and its market value once exceeded the $15,000 mark, and as of June 12 had a market value of $142 million. There are even Wall Street analysts who boldly predict that the market value of Microsoft will reach $2 trillion in two years, based mainly on optimistic about Microsoft’s growing cloud services.
Especially Relevant: Things You Need to Consider in Choosing the Right Cloud Storage for Your Business
Google and Alibaba Cloud Compete for Third Place in the World
Among the four largest cloud giants in the world, the market value of Amazon and Microsoft both stood at trillions of dollars, and Google was also a member of the trillion-dollar club. On June 10, 2020, the market value once again exceeded the trillion-dollar mark.
The market value is 965.1 billion US dollars. Alibaba, as the sixth-ranked technology company in the world, is also the highest listed company in China with a market value of US$583.9 billion, but it is still a long way from a trillion.
It should be pointed out that regarding the third-ranked cloud service provider in the world, there are differences in data from various research institutions. According to Gartner, the international research organization, Alibaba Cloud ranks third in the world.
Synergy Research data shows that Google ranks third in the world by taking up 8% of the global market share. Canalys data shows that Google and Alibaba Cloud are tied for third. Overall, the competition for the world’s third-largest cloud vendor is particularly fierce. After all, people pay more attention to the top three in the world and don’t care who is the fourth.
According to the data disclosed in Alibaba and Google’s annual reports: in 2019, Google Cloud Service revenue was US$8.9 billion, and in the first quarter of 2020, Google Cloud revenue was US$2.777 billion. Alibaba Cloud’s revenue in fiscal 2020 is 40 billion yuan. In addition, Alibaba Cloud revenue from January 1, 2020, to March 31, 2020 (the fourth quarter of the fiscal year 2020) reached 12.2 billion yuan.
It is worth mentioning that although Google Cloud, Alibaba Cloud, and Amazon AWS, Microsoft Azure has a certain gap in revenue and market share, Alibaba Cloud is far ahead in the Asia-Pacific and Chinese markets. According to Gartner data, Alibaba Cloud’s Asia-Pacific market share is as high as 28.2% . According to the report of China’s basic cloud service market in the fourth quarter of 2019 released by the authoritative research organization Canalys, Alibaba Cloud has a market share of up to 46.4%. It is followed by Tencent Cloud and Baidu Smart Cloud. BAT occupies more than 70% of the domestic public cloud market share.
Conclusion
Following Amazon’s pioneering launch of AWS cloud services, it has become an important global digital infrastructure. As the cloud becomes more mainstream in the next few years, the cloud will be everywhere.
The market value of Microsoft and Amazon can enter the trillion-dollar club, which benefits from the rapid growth of global cloud services. Of course, Google and Ali have increased investment in cloud computing.
Among them, Google Cloud announced that it will invest another 10 billion US dollars this year to expand offices and data centers. Alibaba Cloud announced that it will invest another $30 billion dollars in the next three years, focusing on data center, cloud operating system, chip, and other major technology research and development, and proposed a strategy of re-growth, with a deep foundation, a thick center, and a strong ecological development direction.
As the global cloud service market further expands and players actively promote cloud service strategies, it is expected that Google will once again advance into the trillion-dollar club.
Adhering to allowing people to re-examine the Internet of Things and use it to fundamentally change society to do things, in-depth interpretation of cutting-edge technologies such as 5G, IoT and AI, opinions and research strategies have been cited by many authoritative media and well-known enterprises.
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