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AWS and Google Cloud help push cloud revenues to new highs

(Image credit: Image Credit: Rawpixel / Shutterstock)

The global shift towards remote working has led to another bumper quarter for the world's top cloud computing companies.

Amazon Web Services (AWS) has revealed it saw a 29% growth in revenues for its Q2 as demand for cloud computing around the world continued to increase.

However this was overshadowed by rival Google Cloud, which revealed its Q2 revenues grew over 43% year on year.

Google Cloud revenues brought in $3.007bn for Q2 2020, up 43% from $2.1bn year-on-year and $2.77bn in the previous quarter.

"GCP maintained the strong level of revenue growth it delivered in the first quarter, and its revenue growth was again meaningfully above cloud overall," Google CFO Ruth Porat stated.

"Overall, the lower Google Cloud revenue growth in the second quarter relative to the first quarter reflects the fact that G Suite lapped a price increase that was introduced in April last year. G suite maintained healthy growth in average revenue per seat as well as in seat growth which does not include customers who took advantage of our free trials as they shifted their employees to work-from-home."

Google Cloud proved a bright point for parent company Alphabet, which saw overall revenues struggle as it recorded its first quarterly revenue decline since going public. Overall, Alphabet reported total revenue of $31.6bn, down from $31.7bn over the same period last year.

AWS revealed that revenues totaled $10.81bn for the quarter - equivalent to around 12% of Amazon's total revenue as a whole, as the company enjoyed a number of expanding partnerships with companies such as Zoom and Slack, as well as organisations such as Formula 1.

However this marked the first time AWS growth slipped under the 30% margin, down from the 33% seen in Q1 2020.