AWS revenues exceed $1bn per quarter, but Microsoft growing faster

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AWS revenues exceed $1bn per quarter, but Microsoft growing faster

Archana Venkatraman

Total Amazon Web Service (AWS) revenues are now well in excess of $1bn per quarter, Q1 data from Synergy Research Group has revealed. Nearly all of the revenue comes from the company's cloud infrastructure as a service (IaaS) offerings.

AWS’s market share is greater than the four of its nearest rivals (Microsoft, IBM, Salesforce and Google) combined, according to the data.

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The company's estimated revenues are almost one third of the total quarterly cloud infrastructure service revenues (including IaaS, PaaS and private & hybrid cloud) estimated at $3.5bn by Synergy, based on the earnings data released by major operators.

Amazon does not release the sales and revenue figures of AWS but lists it in the “other” category.

The data assessing cloud infrastructure services for the first quarter of 2014 also showed that AWS is growing at a rate of 67% year on year. But rivals Microsoft and IBM registered stronger growth: 154% and 84% respectively.

IBM and Microsoft also laid claims to impressive cloud revenues in the first quarter of 2014, but much of their revenues came from software/software as a service (SaaS), cloud-related hardware products or associated professional and technical services as against AWS’s IaaS revenues.

While Amazon retained its dominant position in the cloud space with almost 30% market share, Microsoft has grown its cloud infrastructure service revenues “remarkably in the last year and is now pulling away from the pack of operators chasing Amazon," said John Dinsdale, a chief analyst and research director at Synergy Research Group.

Microsoft has established itself as the clear runner-up in the market, according to Synergy. IBM is third, Salesforce fourth and Google fifth with less than 5% market share.

“Microsoft’s cloud growth really is impressive” Dinsdale said. “A combination of marketing muscle and credibility with the target audience is helping it to make great strides.

“Nonetheless, Amazon’s revenues are still more than three times those of Microsoft and it will remain in a league of its own for the foreseeable future,” he added.

The research firm estimated the total growth for the cloud market at 50% with an annual revenue of about $12bn.

In contrast, an IDC survey of American enterprises last week revealed that users placed AWS, Azure and Google behind IBM, Cisco, HP and AT&T for cloud services.


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