#1 Google Cloud, #2 SAP, #3 Amazon, #4 Microsoft

While a higher dollar shook up second-quarter total revenue and growth rates, the Cloud Wars Top 10 continued to show significant momentum, with cloud revenue increasing for Google by 36%, SAP by 34%, Amazon 33% and Microsoft by 28%.

Before you tend to wonder if Microsoft 4The tenth Finishing the place in Q2 means that it has lost its advantage, please keep two things in mind:

So let’s take a look at each of these four companies, as well as the five companies that could top the entire group when they release their latest numbers in about five weeks.

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#1 Google Cloud

With revenue up 36% to $6.3 billion, Google Cloud continues its 18-month streak as the world’s best cloud provider. While 36% represents a massive achievement for a company the size of Google Cloud — which will end the year with around $27 billion in revenue — that number is below the mid-40s growth figures that Google Cloud has released in each of the last six quarters. An important factor in the second quarter, of course, was foreign exchange rates that boosted the dollar and led to lower total revenue for all major cloud providers. Well, all but…

#2 PAS

Headquartered in Germany rather than the US, Sève has already benefited from fiat currencies and the 34% cloud growth it achieved in the second quarter may not be sustainable if the dollar weakens. At the same time, SAP has had exceptional growth and current backlog of S/4HANA Cloud ERP applications (Q2 revenue growth of 84%, or 72% in constant currency; and existing cloud applications of 100%, or 87% in constant currency).

SAP also said its enterprise technology platform was showing a 40% growth rate in revenue of about $380 million. Additionally, SAP’s Concur expense management business grew 20% for the quarter as it continued to come back after being devastated by pandemic travel restrictions.

#3 Amazon

Only in Cloud Wars a premium brand like AWS can post 33% revenue growth to nearly $20 billion and finish third among the fastest growing players. AWS generated $19.7 billion in revenue in the second quarter and ranks second in cloud revenue after Microsoft.

But as we noted yesterday, AWS has grown much faster than Microsoft in over a year, and I don’t think it’s overstated that Nadella’s focus on “engagement” during his remarks on Microsoft’s July 26 earnings call was a very direct and frank reaction to this momentum from AWS. Once again, you can read all about it at Microsoft launching a war for market share and customers are sure to win as Nadella and CFO Amy Hood look to put their company back on the offensive.

#4 Microsoft

Speaking of offense, last year it predicted Microsoft would exceed $100 billion in cloud revenue in 2022, and the company’s ability to hit $25 billion in the second calendar quarter — despite challenges in foreign exchange — attests to Cloud Wars’ massive market power. Top 10 companies over the past 3 and a half years.

Nadella’s language on the earnings call was more direct than usual. As Microsoft looks to regain the lead, we can be 100% sure that AWS and Google Cloud will certainly do the same. This means that commercial buyers can expect to receive great offers from both these companies and their partners in the largest growth market the world has ever seen.

inspiration

I mentioned that I’m going to talk about a fifth company, Larry Ellison and his crew at Oracle. In mid-June, when Oracle released its fourth-quarter and full-year financial results, CEO Safra Katz delivered a stunning forecast for the company’s first fiscal quarter, which ends in less than a month on August 31. For the fiscal year beginning June 1, Katz said, the company’s cloud organic growth will be 30%, which itself is impressive. But Katz then added that for the first quarter of the fiscal year ending August 31, Oracle cloud revenue growth rate Including Cernerds’ financial results Between 44% and 47%.

last thoughts

If Oracle is able to achieve the benchmark numbers offered by Catz, then Oracle will become by far the fastest growing leading cloud provider in the world.

Is it a wild market or what?


Want to get more from Bob Evans and see targeted Cloud Wars Expo content? Video-on-demand of the event is being posted, with over 40 hours of cloud-based educational content – featuring over 100 speakers – to be made available in the coming days. All content is free for Acceleration Economy subscribers with an on-demand pass.

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