The cloud business is growing rapidly, and it is expected to continue to grow in the coming years.
The global cloud computing market size was valued at $524 billion in 2022 and is projected to reach $1614 billion by 2030, exhibiting a annual Growth Rate each year around 20.0% during the forecast period (2023-2030).
The rising popularity of the latest novel technologies like artificial intelligence and machine learning and its rapid adoption in the cloud computing is empowering the growth of the global cloud computing market.
The growth of the cloud business is being driven by a number of factors, including:
- The increasing demand for cloud-based applications and services.
- The growing adoption of cloud computing by businesses of all sizes.
- The increasing availability of cloud computing services.
- The decreasing cost of cloud computing services.
The cloud business is a major growth area, and it is likely to continue to grow in the coming years. This growth will create new opportunities for businesses and for cloud computing providers.
Top 3 cloud server companies in the world, based on market share:
Amazon Web Services (AWS)
Amazon Web Services (AWS) is the clear leader in the cloud computing market, with a market share of over 33%. AWS offers a wide range of services, including compute, storage, networking, databases, analytics, machine learning, and artificial intelligence.
AWS currently has 26 regions and 84 availability zones in operation. These regions and availability zones are located throughout the United States, AWS GovCloud (US), Americas, Europe, Asia Pacific, as well as in the Middle East & Africa.
Amazon Web Services (AWS) has grown net sales from ~$8 billion in 2015, to more than $17 billion for 2017, reaching $35 billion by 2019, and now generating almost $74 billion on an annual basis.
As of Q2 2023, Amazon Web Services (AWS) generated $18.44 billion in revenue, representing 16% of Amazon’s total revenue.
After release Q2 financials, Amazon price increased from $128 to $139. one reason is Amazon Web Services (AWS), Amazon’s cloud computing division, is a major driver of the company’s growth. In Q2 2023, AWS revenue grew 37% year-over-year to $18.4 billion. This was the fastest growth rate for AWS in over a year.
Amazon is investing heavily in AWS to maintain its leadership position in the cloud market. In 2022, Amazon announced plans to invest $5 billion in new AWS data centers in the United States and Europe. Amazon is also expanding its AWS services to new regions, such as Africa and the Middle East.
AWS is a key driver of Amazon’s growth and profitability. It is likely to continue to be a major growth driver for Amazon in the years to come.
Microsoft Azure is the second largest cloud server company, with a market share of over 20%. Azure offers a similar range of services to AWS, and it is particularly strong in the enterprise market. Microsoft Azure presently has 60 regions and 116 availability zones in operation.
Microsoft Cloud revenue, which includes revenue from Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, and Dynamics 365, reached $23.4 billion for the latest quarter, an increase of 32% year-over-year. As such, on an annualized basis, Microsoft Cloud revenue currently stands at $93.6 billion. However, Microsoft does not explicitly disclose Azure revenues, meaning that Azure is only a subset of total Microsoft Cloud revenue.
Google Cloud Platform (GCP) is the third largest cloud server company, with a market share of over 9%. GCP is a newer entrant to the cloud computing market, but it is growing rapidly. GCP is particularly strong in the areas of machine learning and artificial intelligence. Google Cloud today has 34 regions and 103 availability zones in operation. Alphabet Inc’s Google Cloud unit earns revenue from the fees it charges for its infrastructure, platform, and other services. For the latest quarter, Google Cloud generated $5.8 billion in revenue, an increase of almost 44% year-over-year. Therefore, on an annualized basis, Google Cloud produces $23.3 billion of revenue.
These three companies are the leaders in the cloud computing market, but there are a number of other cloud server companies that offer competitive services.
Some of the other top cloud server companies include:
Alibaba Group’s cloud computing unit, known as Alibaba Cloud, is the fourth largest cloud service provider globally, the primary cloud vendor in Asia Pacific, and the largest cloud service provider in China.
Alibaba Cloud currently has 27 regions and 84 availability zones in operation.
Alibaba Group primarily generates cloud computing revenue from enterprise customers based on the duration and usage of their services. Alibaba Cloud revenue currently stands at nearly $12 billion, increase of 12% year-over-year.
Oracle Corporation’s Cloud Services offerings include Oracle Cloud Software-as-a-Service (SaaS) and Oracle Cloud Infrastructure (OCI). Through OCI, the company is a cloud service provider, delivering infrastructure technologies as-a-service including compute, storage, and networking services.
IBM Cloud (Kyndryl) today has 11 regions and 29 availability zones in operation. These regions and availability zones are distributed throughout the United States, Americas, Europe, and Asia Pacific.
Tencent Holdings’ cloud computing unit, known as Tencent Cloud, is the second largest cloud service provider in China, behind Alibaba Cloud.
The cloud server business is a rapidly growing industry, with businesses of all sizes increasingly turning to cloud-based servers for their computing needs. The cloud server business is revolutionizing the tech industry.
When investing in cloud computing stocks, it is important to do your research and understand the different companies and their offerings. You should also consider your investment goals and risk tolerance.