Alphabet shed some light on its cloud operations – “Google Cloud” – tonight after the close. It got us thinking about the three cloud platform providers that matter: AWS (Amazon), Azure (Microsoft) and GCP (Google/Alphabet).
Click HERE to access a revenue breakdown for each of the big three.
- Our revenue comparison is not apples-to-apples. Microsoft and Alphabet don’t explicitly break out Azure and GCP revenue. Azure is bundled with a number of other offerings to form its “Commercial Cloud” segment while GCP revenues are aggregated with G-Suite to form “Google Cloud”.
- “Verticality”: If you listen to the TEK2day Podcast (Google I/O episode below), you are familiar with us increasingly discussing “scale” and “verticality“, the latter being a go-to-market strategy that leverages deep domain expertise (see our recent ServiceNow commentary). To that end, expect Google to continue to invest in Sales and technology infrastructure to facilitate Google Cloud adoption around a focused industry vertical-based strategy.
- Scale: GCP is a distant third to AWS and Azure respectively, but we expect GCP to gain market share over time – particularly as advanced AI capabilities (Google’s comparative strength), become increasingly important. Google Cloud grew 53% Y-O-Y and GCP revenue growth exceeded that growth rate (a specific figure was not disclosed). GCP’s growth rate accelerated in 2019 compared to 2018.