The latest report from Canalys has listed the share of Amazon Web Services (AWS), Microsoft and Google in the cloud services market in Q1 2024.
Amazon Web Services (AWS) has 31 percent share in the cloud services market in Q1 2024. AWS’s growth rate was 17 percent.
Microsoft has 25 percent share in the cloud services market in Q1 2024. Microsoft outpaced both AWS and Google Cloud, with sales rising by 31 percent.
Google has 10 percent share in the cloud services market in Q1 2024. Google Cloud grew 28 percent. Others have 34 percent share, indicating that AWS, Microsoft and Google have significant opportunity to grow further.
MAJOR INITIATIVES
AWS has launched the Generative AI Competency Program in March 2024 to recognize and promote partners with demonstrated AWS technical expertise and customer success. The certification requires partners to go through months of training, prove technical proficiency and provide four customer case studies.​ Additionally, AWS enhanced its AI foundation model offerings with Meta’s Llama 3, Mistral’s models and its self-developed Amazon Titan models.
Microsoft revealed AI-related demands contributed 7 percent to Azure’s revenue. It announced plans to strengthen its partnership with OpenAI, with over 65 percent of Fortune 500 companies now using the Azure OpenAI service.
Microsoft Azure has enhanced its support for various models and enriched its AI ecosystem with solutions like SLM Phi-3 in April 2024. By helping customers streamline their cloud migrations, Azure Arc more than doubled its customer base.
Google Cloud accumulated $80.7 billion in revenue backlog at the end of Q1 2024 from $61.3 billion in Q1 2023. At Google Next in April 2024, the company announced that Gemini 1.5 Pro is now available in over 180 countries, offering developers speech comprehension capabilities and additional tools.
Google also announced several new AI-powered features such as adding Gemini to Google Workspaces and launching AI Security within Google Drive. In the Q1 earnings call, it was unveiled that Google Cloud aims to capitalize on AI opportunities by leveraging both partners alongside its internal solutions like Vertex AI and Workspace.
REVENUE
Worldwide cloud infrastructure services expenditure grew 21 percent in Q1 2024 to $79.8 billion, an increase of US$13.4 billion.
“The convergence of AI and cloud represents a transformative juncture, reshaping how businesses approach technology for innovation and growth. Businesses must navigate the complexities of optimizing costs associated with AI infrastructure, including compute resources, storage and data processing, while ensuring that investments in AI technologies yield tangible returns,” said Alex Smith, VP at Canalys.