The cloud infrastructure market is moving past last year’s challenges, demonstrating a breakthrough quarter with significant earnings. Revenue surged rapidly, driven largely by AI advancements. Synergy Research reported a revenue of $79 billion, a $14 billion increase or 22% more than the previous year.
This marks another strong quarter with nearly 20% year-over-year growth, thanks to AI initiatives. Despite potential uncertainties related to politics and economics, Synergy’s analysts predict continued growth, with the market possibly doubling again in four years—compared to the 13 quarters it took to double from $40 billion to $80 billion.
Microsoft’s Intelligent Cloud, including Azure, reported $28.5 billion in revenue, falling short of CNBC’s expectations. However, Azure saw a 30% growth, which is still notable. Analysts highlight Azure’s significant contribution to Intelligent Cloud’s 29% business growth, suggesting this is a positive outcome despite missing target expectations.
Amazon’s revenue reached $26 billion for the quarter, a 19% increase from last year, stabilizing growth after previously falling to the 12-14% range.
Google Cloud also had a strong quarter, reaching $10 billion for the first time, a 29% increase from 2023. This includes Google Workspace and some infrastructure services, with Google gaining a full market share point.
Oracle saw a 3% increase in revenue, surpassing IBM and tying with Salesforce for fifth place. Though this 3% growth is smaller compared to the Big 3’s 73% market share, it still represents over $2 billion in revenue.
There can be some confusion regarding cloud revenue figures, as Synergy Research focuses on infrastructure as a service and hosted cloud services, excluding SaaS. Nevertheless, the quarter reflects a promising start for the coming months, moving past the issues faced in 2023.
Image: DIW-Aigen
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This marks another strong quarter with nearly 20% year-over-year growth, thanks to AI initiatives. Despite potential uncertainties related to politics and economics, Synergy’s analysts predict continued growth, with the market possibly doubling again in four years—compared to the 13 quarters it took to double from $40 billion to $80 billion.
Microsoft’s Intelligent Cloud, including Azure, reported $28.5 billion in revenue, falling short of CNBC’s expectations. However, Azure saw a 30% growth, which is still notable. Analysts highlight Azure’s significant contribution to Intelligent Cloud’s 29% business growth, suggesting this is a positive outcome despite missing target expectations.
Amazon’s revenue reached $26 billion for the quarter, a 19% increase from last year, stabilizing growth after previously falling to the 12-14% range.
Google Cloud also had a strong quarter, reaching $10 billion for the first time, a 29% increase from 2023. This includes Google Workspace and some infrastructure services, with Google gaining a full market share point.
Oracle saw a 3% increase in revenue, surpassing IBM and tying with Salesforce for fifth place. Though this 3% growth is smaller compared to the Big 3’s 73% market share, it still represents over $2 billion in revenue.
There can be some confusion regarding cloud revenue figures, as Synergy Research focuses on infrastructure as a service and hosted cloud services, excluding SaaS. Nevertheless, the quarter reflects a promising start for the coming months, moving past the issues faced in 2023.
Read next: New Study Claims Using Labels Like ‘Artificial Intelligence’ Could Unintentionally Hurt Companies’ Sales
