Google Still In Third Place In Cloud Computing Behind Amazon And Microsoft

Following the release of the second quarter results Google Cloud Platform managed to post growth which was not as impressive as that of Microsoft’s cloud business. In Google’s ‘other revenues’ segment which includes sales from such categories as the Google Play store, Pixel smartphones and the Google Cloud Platform, the rate of growth of sales was 42% and the figure reached $3.09 billion. Last quarter the category had registered a growth rate of 49% to reach a figure of $3.1 billion.

According to the chief executive officer of Google, Sundar Pichai, Google Cloud Platform was still experiencing impressive growth across geographical boundaries, sectors and products. New cloud leads numbers had also tripled year-over-year. In the second quarter the number of partnerships also increased and this included the offerings of Nutanix and SAP getting integrated with the Google Cloud Platform.

Microsoft’s phenomenal growth

Data from Google concerning its cloud business is usually vague and both Pichai and Alphabet’s chief financial officer, Ruth Porat, have not issued specifics just vague bullishness. According to the two, Google Cloud Platform has turned out to be one of the fastest growing units at Alphabet.

Though Google still registered growth in its cloud unit, Microsoft’s growth rate was phenomenal since it grew by 97% in the software maker’s fiscal fourth quarter. Cloud computing sales in dollar amounts were, however, not specified. Azure, one of the units in the Intelligent Cloud Division, saw an increase of 11% in sales which reach $7.4 billion.

Sales department

In recent months the chief executive officer of Microsoft, Satya Nadella, has been driving the company towards gaining a bigger market share. Earlier in the month a reorganization in the cloud sales department was announced with some employees expected to be laid off.

Among the players in the cloud computing sector, it is only Amazon Web Services which bothers to break out its numbers. According to Edward Yruma, an analyst at KeyBank, revenues at Amazon Web Services are expected to increase by over 10% and surpass $4 billion.

“Competition with Microsoft and Google has increased, but does not appear to be derailing AWS’s strong cloud growth prospects,” wrote the KeyBank analyst.

In this year’s first quarter, Amazon Web Services was leading in the cloud computing sector with a 44% market share in public cloud services as per a report by Synergy Research Group. Microsoft had an 11% market share while Google had a market share of 6%.

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