Net sales in the second quarter increased $4 billion to $14.8 billion. The growth rate at AWS outstripped that of parent Amazon which achieved 15%, and further illustrates why it is the most profitable bit of the Amazon group.
That's despite margins slipping on the first quarter. This time, AWS saw an operating income of $4.1 billion, with a margin of 28.3% - down from the 30.8% in Q1.
Synergy Research says the quarterly global cloud market is now worth $42 billion, with Amazon, Microsoft and Google pocketing 63% of every dollar spent. Year-on-year second-quarter market growth came in at 39%.
Synergy said Amazon had seen 10% sequential quarterly growth - well above the overall market quarter-on-quarter growth rate - helping to push its worldwide market share back up to 33%.
“Some of the other cloud providers are growing at very healthy rates, but Amazon is proving to be an extremely tough competitor,” said Synergy.
The Q2 market share numbers from Synergy are: Amazon 33%, Microsoft 20%, Google 10%, Alibaba 6%, IBM 4%, Salesforce 3%, Tencent 2% and Oracle 2%. Companies who each have a market share of 1% (to the nearest percentage point) include Baidu, China Telecom, China Unicom, Huawei, Fujitsu, NTT, OVHcloud, Rackspace and SAP.
Earlier this week, Google Cloud reported that it had shrank its losses to $591 million from the $1.4 billion it lost in Q2 last year. Google Cloud’s quarterly revenue increased 54% to $4.6 billion.
At the same as Google, Microsoft posted its fourth quarter results, and said its Intelligent Cloud segment generated $17.4 billion in sales, which was an increase of 30%. Of this, server products and cloud services revenue increased 34% - driven by Azure revenue growth of 51%.
