economy faced the prolonged effects of the current global pandemic. Select industries like travel and hospitality were hit hardest, forcing select companies to pare down cloud instances and usage. As a result, AWS, Azure, and Google Cloud each witnessed material deceleration in Y/Y revenue growth. Despite these near-term headwinds, the long-term market opportunity and growth potential for these cloud platforms remains strong and is expected to show resilience and strength as the economy slowly sheds the effects of the current pandemic and migration to the cloud is accelerated.Īmazon grew 29.0% Y/Y, on a constant currency basis, ending the quarter at $43.2B in run-rate revenue. Management is pleased with the way in which they navigated the turmoil from COVID-19 and the strength of relationship that they have built with their current customer base through help in optimizing cloud consumption through these unprecedented times.Īzure grew 50.0% Y/Y, on a constant currency basis, which is a significant deceleration from the previous quarter where they grew 61.0% Y/Y. Management highlights their focus on artificial intelligence and cognitive services as a factor in their ability to support customer’s cloud computing needs and demands. Among others, Microsoft noted several new impressive customer logos including Johns Hopkins, Workday and National Australia Bank. Google Cloud grew 43.2% Y/Y, generating $3.0B in revenue this quarter. Notably, they highlight new customer logos include Deutsche Bank, Lowe’s and Dr. Longer term, Google is focused on enhancing their artificial intelligence offerings and a continued focus of investment into product R&D.
Hightouch 40m series iconiq growth 450msawersventurebeat full#
This post is an overview of our findings, please visit our LinkedIn SlideShare for a copy of the full report.ġ. #Hightouch series iconiq growth 450msawersventurebeat full Long-term prospects for public cloud vendors remain positive, despite near-term growth headwinds as a result of COVID-19ĬOVID-19 has forced many enterprises to pull-forward digital transformation initiatives.
On the other hand, many sectors hit hardest by the global pandemic were forced to cut costs and restrict budgets, leading to many organizations slashing their cloud instances. Among other contributing factors, the three largest public cloud vendors all experiences contraction in their % Y/Y revenue growth rates. Despite these near-term headwinds, management teams point to the deep relationships they have built with their client base, in addition to their expanding product suites, as factors that will enable them to experience stable growth over the long-term.ĪWS is a highly strategic, and profitable, business unit with Amazon. This quarter, AWS accounted for just 12.2% of Amazon’s total consolidated revenue, but a staggering 57.5% of their consolidated operating income. As they prepare to handle future compute loads, Amazon purchased PP&E under finance leases totaling $3.2B this quarter, which is down slightly at (4.6%) Y/Y. Finally, management stated they are well-positioned longer-term, noting their average AWS contract length is over three years long. There is also anecdotal evidence that they are witnessing cloud migration plans accelerate as a result of COVID-19. This confluence of factors illustrates that Amazon is a well-positioned, dominant platform within the public cloud market for the long-term.ģ. Though growth slowed to 50% Y/Y this quarter, Microsoft Azure continues to grow it’s presence in the public cloud.
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