The big three - Amazon, Microsoft, and Google - constitute 67% of the overall market share, equating to approximately $50 billion in total cloud revenue for a single quarter. In terms of quarterly percentage growth, Azure was up 30%, AWS up 13%, and Google Cloud up around 25%. Microsoft's aggressive approach to AI seems to be paying off, although it's still early days and Amazon and Google still have time to catch up.
Key takeaways:
- The cloud infrastructure market has seen a significant growth this quarter, largely due to interest in generative AI, pushing the revenue to $74 billion in the fourth quarter of 2023.
- The market share of Microsoft has grown by two percentage points to 25% in the fourth quarter, largely due to its partnership with OpenAI, while Amazon still leads with a 31% share.
- Despite the law of large numbers, the growth in the cloud market is predicted to stabilize, resulting in large annual increases in cloud spending.
- Microsoft seems to have taken the lead in AI in the enterprise, but there is still plenty of time for Google and Amazon to catch up.