Although cloud services have played a role as “speed boosters” in the total revenue of the three technology giants, the slowdown in cloud service growth is still to be broken.
Editor’s note: This article is from WeChat public account “Smart Things” (ID: zhidxcom), author Yun Peng.
Amazon AWS business has accounted for 13% of its $70 billion quarterly total revenue. Microsoft Azure has maintained a 59% year-on-year growth despite a slowdown in eight consecutive quarters. Google mentioned in the earnings report for cloud services. Business, Q3 has invested a lot of human resources in the quarter, and it is yet to be seen whether this will achieve a substantial breakthrough.
By sorting out and analyzing the relevant data related to cloud services in the three overseas technology giants’ financial reports, we find the current mode and characteristics of the overseas cloud service market development, and provide reference for the development of the domestic cloud service industry.
I. Amazon:The status of AWS services is outstanding
Amazon’s third quarter financial report for 2019 shows that AWS net sales are about $8.995 billion, accounting for 13% of overall net sales, compared with 12% in the same period last year. Amazon’s overall service business, net sales are US$30.255 billion, accounting for 43.2% of total net sales. AWS net sales growth rate was 35% year-on-year, higher than the overall 25% year-on-year growth rate. 
AWS Q3 Business Growth and Proportion
In terms of profit, AWS brought operating profit of $2.26 billion, up 9% year-on-year, while Amazon’s overall operating profit was $3.157 billion, down 15% year-on-year. From the data point of view, Amazon’s third-quarter profit showed a downward trend, but the profit of AWS business increased against the trend.
In the foreword to earnings, Amazon has published a number of new AWS-related moves in a larger space.
First, Amazon announced several new customers and related businesses for AWS services in its earnings report. Cerner Corporation selected AWS as its preferred provider of artificial intelligence and machine learning; Globe and Mail and Old Mutual Limited chose AWS as their preferred cloud provider; home appliance manufacturer Galanz will expand its IoT platform in more than 200 countries through AWS.
At the same time, AWS has launched several full-managed services, including Amazon Forecast, which predicts sales and demand, AWS Lake Formation for building, protecting, and managing data, and Amazon Quantum Ledger database services that provide security for a variety of industries. .
In addition, AWS released G4 instances for cloud computing, AWS IQ services to help companies find experts, announced the opening of AWS services in the Middle East (Bahrain) region, reduced cloud service storage prices and expanded Education cloud service market in the United States.
In Amazon, Microsoft and Google’s Q3 earnings report, Amazon’s financial report has the largest amount of information about cloud services, both in terms of sales structure and introduction of new business, which are more detailed on paper. The year-on-year growth rate of AWS’s sales and profit is higher than the company’s market, and the proportion is also slowly increasing, which is an important factor in the increase in performance.
At present, Amazon’s AWS public cloud service accounts for two-fifths of the world’s cloud service market, ranking first.
2016Q1 to 2019Q3 World Public Cloud Service Market Share Trends, Source: Synergy Research Group
Second, cloud service infrastructure construction will become the focus of Microsoft
According to Microsoft’s first quarter (July-September) financial report for fiscal year 2020, Microsoft’s revenue for the quarter was 33.05 billion. The US dollar grew by 14% year-on-year, while services and other income were US$17.28 billion, accounting for 52.3%. Net profit was $10.7 billion, an increase of 21% year-on-year.
Microsoft Q3 Revenue and Profits
Microsoft’s smart cloud business includes public, private and hybrid servers and cloud services that power businesses and developers, including Microsoft Azure, Microsoft SQL Server, Windows Server, Visual Studio, System Center and related CALs, GitHub , advanced support services and Microsoft consulting services.
According to financial report data, Microsoft smart cloud revenue was 10.8 billion US dollars, an increase of 2.3 billion US dollars, an increase of 27%, of which server products (server products) and cloud service revenue increased by 30%, of which Azure is the main promotion sector The year-on-year growth rate of revenue was 59%. However, Azure’s quarterly revenue growth rate has slowed for eight consecutive quarters, compared with 76% year-on-year growth.
