In the third quarter, Google's cloud services revenue, including infrastructure and software subscriptions, increased 35% year-over-year to $11.35 billion.
This week, Google surpassed its competitors in growth; a significant sign that the tech company is gradually establishing itself in the field of artificial intelligence (AI).
In the third quarter, Google's cloud services revenue, including infrastructure and software subscriptions, increased 35% year-over-year to $11.35 billion.
Meanwhile, Amazon Web Services (AWS) revenue increased by only 19% to $27.45 billion. Microsoft, on the other hand, reported that revenue from Azure and other cloud services increased by 33% year-over-year.
Five of the six trillion-dollar tech companies released their results this week, with the exception of Nvidia.
Amazon, Alphabet, and Microsoft typically release their results around the same time, giving investors a comprehensive overview of the battle in the cloud sector.
Analysts at investment research firm Argus Research note that while Alphabet is often criticized for its reliance on online advertising, the rapid growth of Google Cloud has begun to help diversify the parent company's revenue streams.
For a long time, cloud services were seen as an unprofitable investment for Google, but this has changed. Google reported a 17% operating profit margin on its cloud services in the third quarter, after turning profitable for the first time last year.
Melissa Otto, head of technology, media, and telecommunications research at financial services firm Visible Alpha, described the result as exceeding expectations. She also expressed uncertainty about whether Google could sustain this level of profitability.
Conversely, Amazon has long relied on AWS to generate the majority of its profits. AWS's operating profit margin in the third quarter reached 38%, a result that analysts at Bernstein consider "quite impressive."
AWS leadership has been cautious in hiring and discontinuing less popular AWS services. Additionally, in early 2024, Amazon extended the lifespan of its servers from five years to six years, a change that boosted operating profit margins by 2%.
Microsoft began providing investors with more precise figures for its Azure cloud service this week. Amy Hood, Microsoft's chief financial officer, said demand continues to outpace the company's supply.
Although Azure's growth momentum may have slowed slightly in the current quarter, Ms. Hood anticipates a rebound in the first half of 2025 as investments increase its AI delivery capacity to meet growing demand.
Oracle, which typically ranks fourth among cloud infrastructure companies in the U.S., is expected to release its quarterly results this December. In a previous report, Oracle stated that revenue from cloud infrastructure increased 45% to $2.2 billion, up from a 42% increase in the previous quarter.
Source: https://www.vietnamplus.vn/google-vuot-troi-trong-cuoc-chien-dam-may-post989086.vnp
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