Highlights
00:38 — The contrast is rising between AWS, which will report its Q2 results this week, and Google Cloud and Microsoft, which maintained their Q1 growth rates in Q2. AWS has shown a sharp decline in growth rates over the past several quarters, whereas Google Cloud has shown a 28% growth rate over the past two quarters. Google Cloud’s strong Q2 results validate my decision to elevate Google Cloud to #2 and move AWS down to #3 on the Cloud Wars Top 10 list.
02:02 — Microsoft’s and Google’s cloud growth is a good thing for the market overall, as it shows customers may be getting over their concerns about the economy and realizing they need to invest for the future generative AI-centered economy.
02:20 — Google Cloud’s revenue is $8 billion, which is still much smaller than AWS. AWS’s Q2 revenue will be in the range of $22 billion or $23 billion. Alphabet CEO Sundar Pichai says Google Cloud’s infrastructure is optimized for AI, and 70% of “gen AI unicorns” are now Google Cloud customers.
03:43 — The generative AI market is relatively new, but these numbers are very compelling for Google Cloud’s AI platform. It started with a small base, but its customer base has grown 15X in just three months.
04:24 — My decision to move Google Cloud to #2 and AWS to #3 on the Cloud Wars Top 10 list reflects which technology vendors are doing the best job helping their customers build the future.
