In a striking cloud re-acceleration, three hyperscalers collectively added a staggering đ $37Bn to their cloud commits within a mere 3 months. This extraordinary surge, larger than Google Cloud's entire annual revenue run rate, speaks volumes about the potential of cloud marketplaces.
Three leading hyperscalers are deepening revenue backlogs while also beating Wall Street's expectations and forecasting stronger future growth. AWS is on track to 100Bn annual run rate, with Azure and GCP revenue growing at incredible rates of 30% and 28% respectively.
These numbers underline a deeper, long-term customer reliance on the cloud, as the adoption re-accelerated post-optimization with AI among key drivers. With such significant increases in cloud commits, the next 2 years of revenue are essentially pre-booked for these giants.
đ˛đ˛ Amazon Web Services (AWS)
This quarter commits (on Dec 31): $155.7Bn
Last quarter commits (on Sept 30): $133 Bn
Growth: +$22.7 Bn (+17%)
AWS's remarkable jump in commitments this quarter is akin to adding a full quarter's pre-booked revenue alongside accelerating sales. Amazon CEO Jassy emphasized the strength of AWS's pipeline: âExisting customers are renewing at larger commitments over longer periods and migrations are growingâ.
đ˛ Google Cloud
This quarter's commits: $74.1Bn
Last quarter's commits: $64.9Bn
Growth: +$9.1 billion (+14%)
CEO Sundar Pichai highlighted that âstrong demand we are seeing for our vertically integrated AI portfolio is creating new opportunities for Google Cloud across every product area.â He also underscored the importance of co-sell in driving growth: âWith ISVs, we have nearly tripled the number of Co-sell deals from 2022 to 2023â.
đ˛đ˛ Microsoft Azure
This quarter commits: $111Bn
Last quarter commits: $106 Bn
Growth: +$5 Bn (+5%)
* Microsoft only discloses its entire Cloud commits, which increased to $222Bn. With Azure comprising >50% of Microsoft Cloud, Azure commits likely represent $111Bn+.
While Microsoft's commit increase may appear modest, their 30% actual revenue growth this quarter outshines other players. CEO Satya Nadella stressed that âWeâre seeing larger and more strategic Azure deals with an increase in billion-dollar-plus Azure commitments.â
đ $341Bn Cloud Commitments: The Big Picture
Collectively, AWS, Azure, and Google Cloud have amassed over a third of a trillion dollars of signed cloud contracts, expected to be consumed in the next 2-4 years.
This growth signals a continuous market shift to cloud. It also aligns with the projected 86% annual growth for cloud marketplaces, driving them towards $100Bn in annual transactions in under 3 years.
With cloud re-acceleration is back, the question for CXOs and partnerships leaders is: how are you leveraging cloud marketplaces to access these commits?
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