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With AI propelling the market forward
The cloud infrastructure marketplace has put the stagnation of 2023 firmly behind it with another with child quarter . Revenue continues to produce at a brisk pace , fire by sake in AI . Synergy Researchreportsrevenue totaled $ 79 billion for the quarter , up $ 14.1 billion or 22 % from last year .
This mark the third successive one-fourth that year - over - year growth was 20 % or more and AI was a big part of that emergence , according to Synergy .
The bottom line is that the swarm , in spite of last year ’s hiccups , is bear witness trivial sign of slowing down . Even with some element of political and economical precariousness on the horizon , Synergy master analyst John Dinsdale sees a market that will proceed to grow , with the house expecting the market to double over again in four eld ’ time . It took 13 quarter to double from $ 40 billion to almost $ 80 billion ( which it will go by presently ) .
One surprise this quarter was Microsoft Intelligent Cloud , which includes Azure , escape analysts ’ estimation . Thecompany cover $ 28.52 billionversus analysts ’ expectations of $ 28.68 billion , per CNBC;Azure still turn 30 % , per Altimeter collaborator Jamin Ball , so it was n’t all unsound news .
Dinsdale says that it ’s authoritative , however , not to make too much out of the fille . “ Microsoft ’s Intelligent Cloud quarterly revenues come in within the counsel stove bring home the bacon by Microsoft three month ago . To be develop a $ 28.5 billion business by 19 % a class is no beggarly feat . Azure is the declamatory chunk of Intelligent Cloud and it grew by 29 % [ for the quarter ] , which is actually rather impressive , ” he tell apart TechCrunch .
Amazon reportedrevenue of $ 26.3 billion for the after part , up 19 % over the anterior year , as it seems to have settle into this growth pace range for the clock time being after dipping into the 12 % and 13 % kitchen range in early 2023 .
Google Cloud had a dainty quarter pushing over $ 10 billion for the first clock time , up 29 % YoY , per Ball . But it ’s important to note his issue includes Google Workspace , as well as infrastructure military service . More importantly , perhaps , the caller gained a full percentage point of market share , according to Synergy , whose number do n’t include Workspace .
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The overall market portion bit came out to 32 % ( around $ 25 billion ) for Amazon ; 23 % ( around $ 18 billion ) for Microsoft ; and 12 % ( around $ 9.5 billion ) for Google . It ’s worth observe that Microsoft lost approximately two share points of grocery store shareover last quarter , according to Synergy , yet carry on to grow at a brisk rate — a spot that Dinsdale acknowledged , ascribe the drop-off to seasonality in the Azure gross sales bike .
“ There is some seasonality to Azure number and sequential growth is often weak in the April - June quarter after strong growing in the previous living quarters . That happened again , ” he said . “ While Azure did not rise relative to the first poop , both Amazon and Google did and their market percentage both meliorate . If you take out the seasonality and look at rolling annualized growth rate , Azure actually get more than either Google or Amazon . Azure is most definitely not in a till . ”
In the next grade of company , Oracle poke at up to 3 % , passing IBM and tying Salesforce for fifth place overall . While that might vocalize honorable , the Big 3 account for more than 73 % of the market place , but 3 % is still full for over $ 2 billion in gross .
It does get confusing attend at the different ways the companies and the firms that keep an eye on them count swarm routine . Ball is look at publicly reported information . synergism expect at infrastructure as a service , platform as a service and host secret swarm services . It does not reckon SaaS and includes some of its own mart psychoanalysis in its numbers .
