The cloud infrastructure sector has left the sluggishness of 2023 in the past, delivering another robust quarter. Revenue continues to surge, driven by growing interest in AI technologies. Synergy Research reports that the revenue hit $79 billion for the quarter, marking an increase of $14.1 billion, or 22%, compared to the previous year.
This quarter represents the third consecutive period with year-over-year growth of 20% or more, with AI playing a significant role in this expansion, according to Synergy.
Despite last year’s challenges, the cloud market shows no signs of slowing down. Even with potential political and economic uncertainties looming, Synergy’s chief analyst, John Dinsdale, anticipates continued growth in the market, projecting it will double again within four years. It previously took 13 quarters to double from $40 billion to nearly $80 billion, a milestone it is expected to surpass soon.
One notable development this quarter was Microsoft Intelligent Cloud, which includes Azure, falling short of analysts’ forecasts. The company reported $28.52 billion in revenue, slightly below the anticipated $28.68 billion, according to CNBC. However, Azure still experienced a 30% growth, as noted by Altimeter partner Jamin Ball, indicating that the overall performance was still positive.
Dinsdale cautions against placing too much emphasis on this shortfall. “Microsoft’s Intelligent Cloud quarterly revenues fell within the guidance range provided by Microsoft three months ago. Growing a $28.5 billion business by 19% annually is no small achievement. Azure, the largest component of Intelligent Cloud, grew by 29% this quarter, which is quite remarkable,” he explained to TechCrunch.
Amazon reported quarterly revenue of $26.3 billion, reflecting a 19% increase over the previous year. The company appears to have stabilized within this growth rate after experiencing lower growth rates of 12% and 13% in early 2023.
Google Cloud had an impressive quarter, surpassing $10 billion in revenue for the first time, with a 29% year-over-year increase, according to Ball. It’s important to note that this figure includes Google Workspace alongside infrastructure services. More significantly, the company gained a full percentage point of market share, according to Synergy, whose figures exclude Workspace.
For more insights and detailed analyses on the latest developments in the cloud infrastructure market, stay tuned to AiBlock Insider.
