Cloud Commits Reach $439B, Adding $20B in Q1’25
- May 19
- 2 min read
Customer cloud commits now reach $439B, exceeding the combined market cap of Salesforce and Adobe. This quarter alone hyperscalers added $20B in bookings, alongside impressive revenue growth. Let's break down these numbers and key trends.
Breaking Down the Numbers (as of end of Q1'25):
Amazon Web Services (AWS) Commitments: $189B
Growth in Q1: $12B (+6.8% QoQ)
Notable: AWS backlog jumped the most this quarter, while simultaneously posting 17% YoY revenue growth
Microsoft Azure Commitments: $157.5B+ (conservatively estimated as 50% of Microsoft's total $315B commercial RPO)
Growth in Q1: $8.5B (+5.7% QoQ)
Notable: 33% revenue growth with AI driving 16 points, while non-AI services/migrations actually exceeded expectations
Google Cloud Commitments: $92.4B
Change in Q1: -$0.8B (-0.9% QoQ)
Notable: Despite the minor backlog contraction, Google Cloud revenue grew 28% YoY with aggressive AI agent investments
When Will Commitments Convert to Revenue?
This massive $439B backlog will be consumed fairly soon:
Google expects to recognize ~55% over the next 24 months
Microsoft anticipates ~40% over the next 12 months
AWS reports an average remaining contract life of 4.1 years
3 Trends Emerging in Cloud Marketplace Dynamics
1️⃣ Acceleration to $500B Commits in 2025
Current growth trajectories suggest commits will cross half a trillion dollars by end of 2025 (Q1’26 the latest). The AI era is driving cloud acceleration faster, as we predicted.
2️⃣ Marketplace Policy Evolution
AWS announced a major expansion to their marketplace policy (effective May 1) to welcome all SaaS products regardless of where they're deployed.
AWS's new "Deployed on AWS" badge system signals a future where cloud marketplaces welcome all software while still incentivizing native deployments.
To count towards customer commits on AWS marketplace, products now need to be fully deployed on AWS infrastructure.
3️⃣ AI Driving Significant Consumption
Azure's AI services contributed 16% to their 33% growth.
AWS reports "triple-digit percentage YoY" growth in AI on a "multi-billion dollar revenue run rate"
Google Cloud AI efforts are driving significant growth, as it positions itself as the leader in "the new era of AI Agents"
For Cloud GTM Leaders:
These commitments show enterprises are making multi-year structural investments in cloud and AI infrastructure, with increasing portions flowing into third-party software purchases through cloud marketplaces.
With hyperscalers evolving their marketplaces to capture more software spending, your GTM strategy needs to adapt.
As commitments approach the half-trillion mark, is your organization positioned to leverage this massive pool of cloud spend? Or are you leaving money on the table?
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