We all know The market for cloud infrastructures is extremely lucrative. Analyst firm Canalys reports that the sector reached $ 30.2 billion in sales for the fourth quarter of 2019.
Cloud numbers are difficult to analyze because companies often aggregate cloud revenue into a single bucket, regardless of whether it is generated by infrastructure or software. What is interesting about Canalys? Numbers is that it tries to measure the pure infrastructure results itself without interfering with other cloud revenues:
For example, Microsoft reported combined cloud sales for the quarter totaling $ 12.5 billion. However, Canalys estimates that only $ 5.3 billion comes from infrastructure (Azure). Amazon has the purest number of $ 9.8 billion of its $ 9.95 billion infrastructure business. This will help you understand why, despite the fact that Microsoft reported higher overall cloud earnings and growth rate overall, Amazon still has less than Microsoft's double Market share in terms of IaaS spending.
That doesn't mean Microsoft hasn't had a good quarter yet – it generated 17.6% of sales in the period. This is an increase of 14.5% in the same quarter of the previous year. In addition, according to Canalys, Amazon lost some ground, falling from 33.4% in the fourth quarter of 2018 to 32.4% in the last quarter.
One reason is that Microsoft is growing almost twice as fast as Amazon – 62.3% versus 33.2% on Amazon.
Now number three provider Google Pure infrastructure sales were $ 1.8 billion, representing 6% of the market, down from 4.9% in the previous year at a growth rate of 67.6%. Google reported total cloud sales of $ 2.61 billion, but that included software. Despite the lower results, it was a good quarter for the Mountain View-based company.