Last week, Amazon reported their second quarter revenue results, and with it came a new record of $2.9 billion in Amazon Web Services revenue – a 58% increase from the first quarter. The growth exceeded Wall Street expectations as AWS continues to back up its market leader status over close cloud rivals, Microsoft and Google. Google’s parent company, Alphabet, posted second quarter results last week as well, reporting a 21% revenue increase over the previous twelve months. Google’s revenue report included $2.2 billion for “Other Revenues” – which is where Google’s Cloud Platform is categorized. However, Google (or properly Alphabet) does not further break down the financials in order to detail exactly how much of that relates to Google’s Cloud Platform – as it also includes revenue from Google Play and Google Apps, among others. Similarly, Microsoft doesn’t disclose revenue related to Azure. However, they reported an annual run rate of $10 billion and set expectations for that number to grow to $20 billion by 2018.
So, what does all this mean for you as AWS and their competition reap the rewards?