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Microsoft, IBM, Salesforce all crumble before Amazon Web Services cloud revenue

Amazon finally revealed numbers for Amazon Web Services - the cloud computing arm of the company that has become one of the e-commerce giant’s largest divisions - and the numbers speak volumes on how ahead Amazon is compared to the competition.

The numbers show Amazon makes more revenue from AWS than Microsoft, IBM, Salesforce and Google combined in the cloud infrastructure market.

“Across the full and varied spectrum of cloud activities there are now six companies that can lay a valid claim to having annual cloud revenue run rates in excess of $5 billion – AWS, IBM, Microsoft, HP, Cisco and salesforce – and all are able to claim leadership in different parts of the cloud market,” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group. “However, on a strict like-for-like basis AWS remains streets ahead of the competition in cloud infrastructure services. Furthermore, this part of the cloud market is growing much more rapidly than SaaS or cloud infrastructure hardware and software.”

It is twice as large as the second place Microsoft in the cloud market, even with Redmond announcing 60 per cent growth in the cloud infrastructure market this quarter.

Microsoft and Google have shown more growth in the first quarter this year, but AWS remains supreme leader of the cloud infrastructure market with $1.6 billion (£1.05 billion) in revenue.

Google is a surprise runner for the top spot, with 74 per cent growth in Q1 2015. IBM also showed some growth, although the transition from hardware and software to SaaS (software-as-a-service) and PaaS (platform-as-a-service) is lowering its revenue.

Salesforce has not shown much this year, managing a 34 per cent growth this quarter. Once the king of PaaS, it is losing revenue to the upstart cloud computing services from consumer technology brands.

Amazon Web Services runs a lofty amount of internet video, including powering Netflix and Twitch.TV. This is no easy task, but Amazon has shown it is well up to the task and has heavy investments in AWS.