Amazon Web Services (AWS) outperformed other big cloud competitors Microsoft Azure and Google in the fourth quarter, maintaining its stronghold on the market. Here’s a look at some of the fourth-quarter earnings highlights of the top cloud providers.
AWS: The cloud leader reported 47 percent growth in the fourth quarter year-over-year, with earnings of $3.5 billion. Operating income was up 60 percent to $926 million. For the full year, operating profit was $3.1 billion on revenue of $12.2 billion, up from $7.88 billion in 2015.
Microsoft: Microsoft Azure had a second-quarter fiscal year run rate of more than $14 billion, up 49 percent. The company also said its annual revenue grew 93 percent year over year.
Unfortunately, Microsoft doesn’t break out the financial details on Azure. But many analysts estimate that Microsoft Azure’s growth and usage nearly doubled year-over-year. In fact, according to Investopedia, Azure may be closing the gap with AWS. Investopedia surveyed some Wall Street analysts who believe Azure’s revenue in the last quarter could have been nearly $3 billion.
Google: Google doesn’t break out Google Cloud Platform earnings, which remain in the “Other” category mixed with Google Play and hardware products. In the Other category for the fourth quarter, Google reported revenue of $3.4 billion, up 62 percent from a year ago. For the entire year, Google’s Other category had revenue of $10.07 billion.
In Google’s earnings call, CEO Sundar Pichai said that the company believes its Google Cloud offering is differentiated from the competition because it incorporates data analytics and machine learning, plus privacy and security tools.
IBM: Big Blue reported earnings a week earlier than the others listed here, but for the record: its “as-a-service” run rate was $8.6 billion in the fourth quarter. That figure includes infrastructure-, platform-, and software-as-a-service (IaaS, PaaS, SaaS).