Cloud business skyrocketing, Improving the financial giants of the internet

Cloud computing business is growing. Revenues from Microsoft, Alphabet, Intel and Amazon from the cloud business are on the rise. This is driven by a significant profit increase for cloud computing service providers in their latest financial statements.

Cloud Business

Amazon holds the largest revenue for cloud computing services with 31.8 percent, followed by Microsoft at 13.9 percent, and Alphabet, Google’s parent company, at 6 percent. Overall, analyst firm Canalys estimates the market share of cloud services in the third quarter of 2017 worth 14.4 billion US dollars. That number rose 43 percent from a year earlier. The cloud business will continue to grow faster than other traditional IT segments, as the market is still in a growth phase.

However, compared to the first quarter, Amazon’s market share seems to be consumed by its competitors. Because, in the first quarter Amazon holds 40 percent of cloud computing market share, Microsoft 11 percent, and Alphabet still control 6 percent market share.

Amazon’s market share is not only inedible by the growth of Microsoft. Because of the calculations, the total market share of these three giant companies in the first quarter leaves 43 percent market share for other players. While in the third quarter, the share of other players’ market share increased to 48.3 percent.

Growing fast

Amazon dominates the market through Amazon Web Services (AWS). They managed to suck up revenues of nearly 4.6 billion dollars in the third quarter, up 42 percent over the same period last year. Agreements with Hulu, Toyota, and General Electric sparked AWS strong growth.

Microsoft does not openly open their cloud computing revenue, but Canalys estimates the company managed to record 2 billion US dollars from Azure. Interestingly, Azure’s year-on-year growth shot 90 percent.

While Alphabet, also grew 76 percent over the same quarter last year. Revenue they submit through Google Cloud Platform is predicted to reach 870 million US dollars.

Alphabet CEO Sundar Pichai even called their cloud services into the top three priority businesses of Google’s parent company. He plans to continue to enlarge the reach of Google Cloud Platform.

Intel itself benefits from the growth of cloud computing. Because, Intel managed to make the growth of data centers of the owners of cloud computing as a new business fields. Xeon’s chip for servers boosted the company’s revenue by 7 percent year-on-year.

Cloud service business is estimated to continue to grow. The tight competition from the vendors will not reduce the trend of this commodity.

Despite continuing to grow, Canalys predicts an increasingly fierce competition will lead to a somewhat slower business growth.