Hyperscaler cloud commits surged to a staggering đ° $348 Bn last quarter, adding $66Bn in just one year. Numbers tell an insightful story, if we reflect on the last 12 months.
Not only has each of 3 hyperscalers accelerated actual revenue growth, surprising even the most optimistic Wall Street analysts, but they also grew customer cloud commits (booked backlog).
⥠Clouds are now driving the entire tech industry forward, helping companies to leverage AI, move to the cloud, modernize infrastructure and buy SaaS products via their cloud marketplaces.
We talked at length that marketplaces have nearly doubled YoY, becoming the dominant SaaS distribution channel.
Let's delve into the specifics:
đ˛đ˛đ˛ Amazon Web Services (AWS)
Last quarter commits: $157.7Bn
Growth 12 month: $37.5 Bn (29%)
đ˛đ˛ Microsoft Azure
Last quarter commits: $117.5Bn*
Growth 12 month: $19Bn (20%)
đ˛ Google Cloud
Last quarter's commits: $72.5Bn
Growth 12 month: $10Bn (17.5%)
This $66 Bn collective increase in cloud commitments in just a year tells a story of robust tech ecosystem health and rapid innovation.
Interestingly, while AWS's actual revenue growth rate has moderated to 17% (last quarter vs 31% Azure and 28% GCP growth), its commitment growth outpaces its rivals, nearly doubling that of its closest competitor in absolute terms.
đŻ Amazon CEO Andy Jassy aptly captured the essence of this trend, stating yesterday:
âCompanies have largely completed the lion's share of their cost optimization and turned their attention to newer initiatives.
Before the pandemic, companies were marching to modernize their infrastructure, moving from on-premises infrastructure to the cloud to save money, innovated at a more rapid rate, and to drive more developer productivity. The pandemic and uncertain economy that followed distracted from that momentum, but it's picking up again.â
Jassy highlighted the unique position of AWS and its ecosystem:
âWith the broadest functionality by a fair bit, deepest partner ecosystem and strong security and operational performance, AWS continues to be their strong partner of choice.â
đ He emphasized the bullish outlook for AWS and cloud, pointing out:
âWe're at $100 billion-plus annualized revenue run rate, yet 85% or more of the global IT spend remains on-premises. And this is before you even calculate GenAI, most of which will be created over the next 10 to 20 years from scratch and on the cloud.â
These insights not only affirm the sustained growth of cloud but also the vital role of cloud marketplaces in shaping the future of technology deployment and consumption.
If youâre not yet leveraging cloud GTM, now is the time to explore this accelerating route for growth.
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