Microsoft and Google have both experienced a resurgence in cloud revenue due to the rise of generative AI (genAI) after a period of slow growth.
Both companies reported their revenue numbers for the final quarter of 2023 on Tuesday.
According to Lee Sustar, principal analyst at Forrester, Google Cloud now accounts for 10% of Alphabet’s revenue and is using the AI momentum to reintroduce itself to enterprise IT leaders as a partner.
Microsoft Cloud revenues, which include Azure and SaaS offerings like Microsoft 365 and Dynamics 365, have seen a significant boost due to the AI boom, according to Sustar.
Google reported cloud revenue of $9.19 billion for the quarter, up 28% from a year earlier, while Microsoft Cloud surpassed $33 billion in revenue, up 24% (22% in constant currency).
Microsoft CEO Satya Nadella stated that the company now has 53,000 Azure AI customers, a third of whom subscribed to its services in the last 12 months. Microsoft has also seen spikes in usage across its intelligent data platforms.
Microsoft’s Azure business is getting a lift from its own customers and from partners such as OpenAI, according to Jason Wong, a Gartner vice president analyst.
According to Franco Chiam, IDC’s vice president of cloud for Asia Pacific region, the uptick in cloud revenue at both companies can be attributed to the role cloud plays as a key enabler of digital transformation.
Chiam noted that increased adoption of genAI will mean even more cloud use as enterprises aim for scalability and flexibility.
At Google, “the strong demand we are seeing for our vertically integrated AI portfolio…
2024-02-02 17:00:04
Article from www.computerworld.com