Microsoft Vs Google: Cloud giants go head-to-head in latest results
Which industry titan managed to edge out its rival in this quarterly results showdown
Cloud hyperscalers Microsoft and Google have published their financial results for the quarter ended June 30, 2023.
Both companies touted the growth and impact of AI in their earnings.
Google gained the upper hand on its rival Microsoft in terms of cloud growth, with Google Cloud rising 30 per cent to earn $8.031bn against Microsoft Azure's year on year growth of 26 per cent.
CRN breaks down each company's results below.
Microsoft
The Azure vendor saw revenues climb eight per cent year on year to $56.2bn in its FY23 Q4 results.
Net income jumped 20 per cent to bring in $20.1bn.
"The Microsoft Cloud surpassed $110bn in annual revenue, up 27 per cent in constant currency with Azure all up accounting for more than 50 per cent of the total for the first time," Microsoft chairman and CEO Satya Nadella told listeners on an earnings conference call.
"Every customer I speak with is asking not only how but how fast they can apply next-generation AI to address the biggest opportunities and challenges they face and to do so safely and responsibly."
Revenues in Microsoft's intelligent cloud arm rose 15 per cent to $24bn.
Within this segment, server products and cloud services revenue were up 17 per cent, driven by Azure and other cloud services revenue growth of 26 per cent.
Though revenues from Azure grew more than one quarter, the growth rate was slower than in the previous quarter at 27 per cent.
Microsoft CFO Amy Hood revealed on the earnings call AI had added one per cent growth to its Azure platform.
Revenues in PCs were unsurprisingly down four per cent to $13.9bn as the market slump continues.
Google parent Alphabet posted Q2 2023 results beating Wall Street expectations.
Revenues gained seven per cent year on year to rake in $74.6bn.
Net income increased 14 per cent to $18.3bn.
"Our continued leadership in AI and our excellence in engineering and innovation are driving the next evolution of Search, and improving all our services," said Alphabet and Google CEO, Sundar Pichai.
"With fifteen products that each serve half a billion people, and six that serve over two billion each, we have so many opportunities to deliver on our mission."
Revenues in Google Cloud surged 30 per cent to earn $8.031bn.
Alphabet also took the time to announce the promotion of CFO Ruth Porat to the newly created role of president and chief investment officer of Alphabet and Google, effective September 1, 2023.
Porat will continue to serve as CFO, including leading the company's 2024 and long-range capital planning processes, while the company searches for and selects her successor.