Cloud Thrives Amid Pandemic: AWS Gains USD 10 Bn Revenue, Google Cloud USD 3 Bn
While the rest of the economy is tanking from the crippling impact of the coronavirus pandemic, business at the tech giants is holding steady, even thriving.
Cloud providers are among the few corporate winners in the coronavirus pandemic.
The world’s three leading cloud services providers, Amazon Inc’s Amazon Web Services (AWS), Microsoft Corp’s Azure, and Alphabet Inc’s Google Cloud have all witnessed strong demand for their services.
AWS crossed the USD 10 billion revenue mark again for its most recent quarter, while Google Cloud broke the USD 3 billion mark.
AWS gained USD 10.8 billion in revenues for its second quarter of 2020, up by 5.8% from the first quarter and 29% from Q2 of 2019.
AWS’s Highlights in Q2:
- Launch of Snowcone, a small, ultra-portable, rugged, and secure edge computing and data transfer device
- Launce of Honeycode, a fully managed service that allows customers to quickly build mobile and web applications, with no programming knowledge
- Key client wins in the form of IHS Markit, HSBC, Formula 1, Bundesliga, Capella Space, and Genesys
“We’re seeing migration plans ‘accelerate’ in a ‘bifurcated world.’ Many companies are wishing to make more progress on the cloud because they know that the companies on the cloud can scale up or scale down depending on their particular situation,” said Amazon CFO Brian Olsavsky.
Meanwhile, Google Cloud revenues stood at USD 3.01 billion in Q2 of 2020. Though the revenue was up by 43% from last year, it dropped from 52% growth compared with Q1 of 2020.
Google Cloud’s Highlights in Q2:
- The beta launch of Google Cloud Confidential Computing with Confidential VMs, targets regulated industries, as well as government-specific workloads
- The launch of BigQuery Omni, which enables the BigQuery data warehouse services to query data in other clouds
- New customer wins in the form of Deutsche Bank, FOX Sports, Renault, Goldman Sachs, Verizon, and Telefonica
- Collaboration with Box, Inc
Alphabet CEO Sundar Pichai said that technology and innovation proved to be a significant business mechanism in the first half of 2020.
“The macroeconomic environment caused by Covid-19 ‘created headwinds’ for our company,” he said. “Our commitment to bringing innovative products to market, building and scaling our go-to-market organization, and strengthening our partner network, helped us continue to meet the growing needs of our customers this quarter.”
Pichai added that G-Suite and Google Meet have become ‘absolutely critical’ for digital business and greater collaboration.
According to Synergy Research, the AWS accounted for 33% of the cloud market this quarter, followed by Microsoft and Google with 18% and 9%.
“As enterprises struggle to adapt to new norms amid the pandemic, the advantages of public cloud are amplified,” said John Dinsdale, Chief Analyst at Synergy.