While Amazon and Microsoft are currently leading the cloud industry in terms of revenue, Google’s growth in the cloud segment has also been impressive. Compared to the two leaders, Google’s revenue from cloud has grown slower. However, the impressive growth it achieved in 2019, signals a stronger performance in the cloud segment in the years ahead.
Amazon versus Google revenue from Cloud services.
|Year||Google Cloud Revenue ($mn)||Amazon Cloud revenue ($mn)|
While Google has more than doubled its revenue from the cloud services in just two-three years, its net revenue from cloud computing was still only a little above a quarter of what Amazon generated from cloud services in 2019. Google generated $8.9 billion in 2019 from cloud services compared to $5.8 billion in 2018. On the other hand, Amazon’s revenue from the cloud segment reached $35 billion in 2019 compared to $25.7 billion in 2018.
Google (Parent company Alphabet), the search engine giant relies mainly on digital advertising as its main source of revenue. The company was founded in 1998 by Larry Page and Sergey Brin who stepped down from the leadership positions of Google (including the parent company). Sunder Pichai is the new CEO of Alphabet. Apart from search and advertising as well as social media (YouTube), the company has also introduced a large range of cloud computing products for individuals and enterprises. The headquarters of Google (Googleplex) is located in Mountain View, California, United States. Apart from its core business which is Google, Alphabet, the parent company owns several other smaller companies collectively called other bets.
Amazon (NASDAQ: AMZN) is the largest e-commerce brand and one of the leading cloud computing brands. The company was founded in 1994 by Jeff Bezos. It has seen enormous growth over the last five years and has greatly extended its range of cloud-based services. Amazon has its headquarters in Seattle, Washington, United States. The CEO of Amazon is Jeff Bezos. Amazon Web Services (AWS) is Amazon’s cloud services platform. Amazon is also the largest R&D spender in the entire business industry. The company has divided its business into three main segments that include Amazon North America, Amazon International, and AWS.