AWS, Google Cloud Platform and Microsoft Azure all reported a slowdown in their significant revenue growth in the third quarter, according to the companies’ quarterly earnings reports. After many years of success, the market for cloud service providers has reached a low point due to macroeconomic conditions.
Microsoft reported that its critical Azure cloud division will grow more slowly than expected this quarter. Alphabet, Google’s parent company, also reported that the growth of the Google Cloud Platform will slow from 44% in the third quarter of 2021 to 37% in the third quarter of 2022. While Amazon reports that growth of 33% is expected in its AWS segment, this is a decrease from the growth of 39% in the same quarter last year.
Although Microsoft’s Azure continued to expand, the rate of growth slowed. Its segment revenue rose 20% to $20.3 billion in the first quarter of 2023 to September 30, but growth was 11 percentage points lower than the year-earlier quarter of 31%.
Alphabet posted $6.9 billion in revenue from the Google Cloud in its third-quarter earnings report, up 37% from a year earlier, still a slowdown from the 45% growth in cloud revenue that Alphabet reported in the third quarter of 2021.
Amazon’s AWS reported net sales of $20.5 billion for the third quarter of 2022, up 27% year-on-year.
As the cloud market grows, these three major cloud service providers, Amazon, Microsoft and Google, are reportedly unable to maintain the growth rates from the early days of technology.
The sources for this piece include an article in CIODIVE.