In this Cloud Wars Minute, Bob predicts that Microsoft and Google Cloud will report even revenue growth results in the coming weeks.
Highlights
00:33 — Over the next couple of weeks, six of the Cloud Wars Top 10 companies will reveal financial results, two of which are Google Cloud’s parent company Alphabet and Microsoft.
00:57 — Microsoft has a significantly bigger cloud business and revenue base. Bob predicts that Microsoft cloud will report about $100 billion in revenue for 2022 and Google Cloud will report about $26 billion. Although Microsoft’s revenue base is much bigger, he believes that Google Cloud’s revenue growth will be even with Microsoft’s revenue growth.
01:17 — From Q2 to Q3, Microsoft gained $600 million in cloud revenue. During that same period, Google Cloud generated $599 million — which he rounds up and states that they’re essentially the same. Even though Google Cloud has a smaller revenue base, it matched the revenue growth of Microsoft during that period.
02:01 — This is an indicator of Google Cloud having really powerful momentum in the marketplace. Was this just a one-time blip or will this trend continue? Regardless, Bob maintains his belief that both companies will report an additional $700 million in revenue for Q4.
02:46 — One reason why Bob focuses on growth rates with Cloud Wars is that those numbers are proxies for what’s going on among business buyers. Right now, there a huge appetite for cloud technology to complete digital business transformations.
03:30 — Google Cloud, although a much smaller company than Microsoft cloud, is now having as much impact on new business from customers as Microsoft.
03:45 — Microsoft will report on January 24. Alphabet will report on February 2.
