Amazon and Microsoft are the undisputed leaders in the cloud industry. Microsoft’s Azure is a cloud computing platform that offers platform and services for developers and businesses to create, deploy, and manage apps through Microsoft managed data centers (Wikipedia). Microsoft Azure started in 2010 and is enjoying growing popularity over time. Amazon’s range of cloud services has seen its popularity grow for several reasons. Apart from higher accessibility and the ease to deploy and operate, Amazon’s competitive pricing and content-driven marketing strategy have also enabled wider reach and growth in sales. AWS now accounts for a significant portion of the revenue of the company. AWS or Amazon Web Services offers a very large range of services. A large number of leading organizations like Netflix depend on AWS for the worldwide availability of their services.
AWS Revenue versus Microsoft Intelligent Cloud
|Year||AWS Revenue (Millions)||Microsoft Intelligent Cloud Revenue (Millions)|
Microsoft’s cloud revenue has remained consistently higher than Amazon over the past several years. In 2019, the company saw its total revenue from the intelligent cloud segment grow to $38.99 billion from $32.22 billion in 2018.
Intelligent Cloud Revenue of Microsoft
The intelligent cloud revenue of Microsoft grew $6.8 billion or 21% driven mainly by growth across server products and cloud services revenue including GitHub. Its revenue from server products and cloud services grew by $6.5 billion or 25% driven by Azure. Azure revenue growth was 72%, due to higher infrastructure-as-a-service and platform-as-a-service consumption-based and per user-based services. Server products revenue increased 6%, mainly due to continued demand for premium versions and hybrid solutions, GitHub, and demand ahead of end-of-support for SQL Server 2008 and Windows Server 2008. The Enterprise services revenue of the company increased $278 million or 5% driven mainly by growth in Premier Support Services and Microsoft Consulting Services.
AWS Revenue (Amazon Revenue from Cloud Services:
On the other hand, the cloud revenue of Amazon (AWS revenue) grew to $35 billion in 2019 from $25.7 billion in 2018. AWS revenue represented 12% of the net sales of the company in 2019 against 11% in 2018. While consolidated net revenue of the company experienced 20% growth in 2019, its AWS revenue experienced 37% growth. However, Amazon has continued to make prices more competitive across the AWS range and that offset some of the revenue growth from AWS. Increased customer usage mainly drove the growth of revenue across the AWS segment.
Amazon (NASDAQ: AMZN) is the largest e-commerce brand as well as one of the leading cloud services brand. The company which was founded in 1994 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 the cloud services platform of Amazon. Amazon is also the largest R&D spender in the entire industry. The company has divided its business into three main segments that include Amazon North America, Amazon International, and AWS.
Microsoft is a leading player in the computing and cloud industry which has seen enormous growth during recent years led by Satya Nadella. Microsoft Chairman Bill Gates recently stepped down from his position to invest time in his philanthropic activities. The company was founded in 1975. It has its headquarters in Redmund, Washington, United States. The company has experienced sharp growth in its revenue from Cloud-based services. Intelligent Cloud revenue of the company in 2019 reached around $39 billion, YoY growth of 21%. Microsoft Azure experienced revenue growth of around 72% in 2019 compared to the previous year. Microsoft has acquired many companies over the course of time.