Google vs Amazon vs Microsoft: Q1 cloud earnings face-off
CRN compares the cloud results of the hyperscaler giants as the trio post their Q1 2023 earnings
Amazon, Google and Microsoft each reported their cloud earnings results for the first quarter of 2023, with all three cloud giants reporting double-digit sales growth and positive operating income for the first time ever.
Amazon, led by its cloud arm Amazon Web Services (AWS), Microsoft's Azure cloud unit, and Google's cloud business Google Cloud are the three largest cloud computing companies on the planet.
Combined, these three cloud giants won roughly two-thirds of the massive $63bn global cloud infrastructure services market during the first quarter of 2023, according to new market share data from Synergy Research Group.
"There has been some angst about declining cloud growth rates, but the Q1 worldwide market value grew by more than $10bn compared with the first quarter of 2022," said John Dinsdale, chief analyst at Synergy Research Group, in a statement.
"Clearly the relatively weak economy has caused some enterprises to more closely review spending on cloud services, but the market continues to grow despite those challenges."
AWS, Microsoft, Google Cloud's Q1 earnings
AWS, Microsoft and Google reported financial earnings for the first three months of 2023 ending March 31.
While it was officially AWS and Google Cloud's first quarter of 2023, it represented Microsoft's fiscal 2023 third quarter. It is key to note that Microsoft doesn't provide sales figures for its public cloud Azure business. Instead, Microsoft includes Azure revenue as part of its Intelligent Cloud segment.
CRN breaks down the cloud computing financial results for AWS, Microsoft and Google Cloud in terms of: total revenue, year over year sales growth, operating income, global market share, as well as their parent company's overall results. Here's what channel partners, customers and investors need to know when comparing Q1 2023 results from AWS, Microsoft Azure and Google Cloud.
Google vs Amazon vs Microsoft: Q1 cloud earnings face-off
CRN compares the cloud results of the hyperscaler giants as the trio post their Q1 2023 earnings
Total cloud sales
Microsoft: $22.1bn
AWS: $21.4bn
Google Cloud: $7.5bn
Redmond, Wash-based Microsoft reported a total of $22.1bn in cloud revenue for the first quarter of 2023. However, Microsoft doesn't break out its Azure cloud sales numbers. Azure sales are included in Microsoft's Intelligent Cloud segment, which also includes revenue from server products and other cloud services.
Seattle-based Amazon Web Services generated $21.4bn in worldwide cloud sales during its first quarter 2023.
Google Cloud reported total sales of approximately $7.5bn for the Mountain View, Calif.-based company's first quarter 2023.
Google vs Amazon vs Microsoft: Q1 cloud earnings face-off
CRN compares the cloud results of the hyperscaler giants as the trio post their Q1 2023 earnings
Cloud revenue growth
Google Cloud: 28 per cent
AWS: 16 per cent
Microsoft: 16 per cent
Google Cloud continues to grow revenue faster than its two larger competitors, AWS and Microsoft, by increasing sales 28 per cent year over year during first quarter 2023. The company generated total sales of $7.45bn in the quarter, up from $5.82bn revenue in first quarter 2022.
Both AWS and Microsoft grew cloud revenue at approximately the same rate during the quarter at 16 per cent growth year over year.
AWS' total sales of $21.4bn in first quarter 2023 represents a 16 per cent increase year over year compared to $18.4bn.
Microsoft's Intelligent Cloud segment generated revenue of $22.1bn, up 16 per cent compared to $19bn year over year. The software giant reported that server products and cloud services revenue increased 17 per cent, driven by Azure and other cloud services revenue growth of 27 per cent.
Google vs Amazon vs Microsoft: Q1 cloud earnings face-off
CRN compares the cloud results of the hyperscaler giants as the trio post their Q1 2023 earnings
Operating income
Microsoft: $9.5bn
AWS: $5.1bn
Google Cloud: $191m
Microsoft's Intelligent Cloud unit reported operating income of nearly $9.5bn during the first quarter of 2023, up from $8.4bn year over year.
AWS trailed Microsoft by generating $5.1bn in operating income in Q1 2023, representing a decline compared to $6.5bn in operating income in Q1 2022.
After years of generating an operating loss, for the first time in its history, Google Cloud turned a profit during the first quarter of 2023. Google Cloud generated operating income of $191m in the quarter, compared to an operating net loss of $931m year over year.
For its entire fiscal year 2022, Google Cloud reported an operating loss of nearly $3bn. This is a massive turn from Google Cloud operating at a loss for years to generating profitability in 2023.
Google vs Amazon vs Microsoft: Q1 cloud earnings face-off
CRN compares the cloud results of the hyperscaler giants as the trio post their Q1 2023 earnings
Cloud market share Q1 2023
AWS: 32 per cent
Microsoft: 23 per cent
Google Cloud: 10 per cent
Following Microsoft, AWS and Google's first quarter earnings reports, Synergy Research Group released new data on enterprise spending on cloud infrastructure services for Q1 2023. The global cloud infrastructure services market reached $63bn in first quarter 2023, increasing by 20 per cent year over year.
AWS continues to be the market share leader in cloud services, winning 32 per cent market share on a global basis in the first quarter.
Microsoft ranks No. 2 in global cloud market share by winning 23 per cent share in the first quarter.
In third place, Google Cloud won approximately 10 percent share of the worldwide cloud infrastructure services market.
Google vs Amazon vs Microsoft: Q1 cloud earnings face-off
CRN compares the cloud results of the hyperscaler giants as the trio post their Q1 2023 earnings
AWS, Azure and Google Cloud's parent companies results
Amazon
Total sales: $127.4 bn
Operating income: $4.8bn
AWS' parent company Amazon generated $127.4bn in sales during the first quarter 2023, representing a nine per cent revenue increase year over year. Amazon's operating income during the quarter was $4.8bn, with its AWS segment reporting $5.1bn in operating income. This means AWS kept its partner company Amazon profitable during the quarter.
Total sales: $69.8bn
Operating income: $17.4bn
Google Cloud's parent company Google generated $69.8 billion in total revenue during the first quarter of 2023, an increase of three per cent year over year. The search giant and YouTube owner reported operating income of $17.4bn, which includes Google Cloud's $191m in operating income.
Microsoft
Total sales: $52.9bn
Operating income: $22.4bn
Microsoft generated $52.9bn in total revenue in the first quarter 2023, increasing revenue by seven per cent year over year. The company's total operating income was $22.4bn in the quarter, with its Intelligent Cloud segment reporting $9.5bn in operating income.