Welcome to the Cloud Wars Minute — your daily cloud news and commentary show. Each episode provides insights and perspectives around the “reimagination machine” that is the cloud.
In today’s Cloud Wars Minute, I compare AWS’s impressive quarter with the even faster momentum of its competitors.
Highlights
00:01 — Wanted to talk today a little bit about the Q1 that AWS just had. I think they revealed an awesome acceleration in Q1, but in a competitive sense, it’s still falling behind competitors like Google Cloud, Microsoft, and Oracle.
00:36 — After three years, our AI run rate now for AWS is $20 billion, compared to $58 million for cloud in its early years. Jassy emphasized how aggressively AWS is pushing into AI and highlighted four key reasons behind this acceleration.
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02:05 — AWS revenue grew 28% to $37.6 billion, its highest growth in 15 years. However, Google Cloud is growing at 63%, Microsoft at 29%, and Oracle at 44%, with all three showing stronger backlog growth.
02:55 — A couple things can be true at the same time. AWS had a strong quarter and happy customers, but on a competitive basis, it ranks last in growth rate, backlog size, and backlog growth among hyperscalers.
03:52 — AWS remains strong in a massive market with many customers, but compared to competitors, it has the smallest and slowest-growing backlog. Those are the facts on the ground today in the cloud market.
