With companies across all industries investing heavily in cloud technology, the enterprise cloud market continues to be largely insulated from the global economic downturn, with the five fastest growing vendors posting revenue gains quarterly ranging from 45% to 29%.
It is important to look at these figures from two angles:
- First, the respective growth rates of the major cloud providers provide a continuous perspective on which providers are gaining momentum and sharing in this wickedly competitive industry; and
- Second, the huge revenue numbers and growth rates posted by cloud companies reflect the enormous confidence that business leaders show in the ability of the cloud to help them move faster, interact more intimately with customers. , innovate faster, and focus technology spending on dazzling their customers and increasing revenue.
I also want to quickly acknowledge that the companies in the Cloud Wars Top 10 come in all shapes and sizes and in most cases the highest growth rates are shown by cloud providers with revenue on the smaller end of the spectrum.
– Advertising –
With that in mind, though, I find it amusing – laughable? — to hear some people say that a growth rate of 45% (hello, Oracle) isn’t impressive or even trivial because, after all, that multiplier was built on a base of “only” about 2, $5 billion.
Only in the biggest growth market the world has ever seen would some people conjure up the idea that 45% growth on $2.5 billion in revenue is petty, trivial, or just plain no big deal.
This observation aside, I nevertheless fully and eagerly acknowledge that size matters, and so in listing the highest growth rates below, I will also be giving quarterly revenue totals for cloud providers.
Alright, so let’s take a look at how these high-flying world shapers stack up when ranked by cloud revenue growth rates.
#1 Oracle: 45% to $3.6 billion (quarter ended August 31)
#2Google Cloud: 36% to $6.3 billion (June 30)
#3 Sap: 34% to $3.12 billion (June 30)
#4 AWS: 33% to $19.7 billion (June 30)
#5 Microsoft: 29% to $25 billion (June 30)
#6 ServiceNow: 25% to $1.66 billion (June 30)
#7 IBM: 24% to $5.9 billion (June 30)
#8 Business Day: 23% to $1.37 billion (July 31)
#9 Salesforce: 22% to $7.72 billion (July 31)
#10 Snowflake: 83% to $466 million (July 31) ** Although Snowflake was extremely disruptive, it is also much smaller than the other Cloud Wars Top 10 companies. I will include them in the regular rankings when Snowflake’s quarterly revenue exceeds $1 billion.**
Now, over the past few months, the world has been obsessed with concerns about a recession, the war in Ukraine, rampant inflation, and other mega forces rocking the global economy. At the same time, every company in every industry has had to grapple with deeply challenging workforce issues, from desperate efforts to find the right talent to creating hybrid work a strategy that addresses the requirements of both employees and the company.
Just to keep things interesting, organizations across the world and across industries have had to develop new business models, new customer engagement models, new digital business processes, and more. in order to meet the demands and requirements of modern customers.
Amidst all this turmoil and disruption, the enterprise cloud has become an indispensable engine for innovation, acceleration, growth, and stability. Along the way, cloud-based IT has also moved, in the minds of CXOs and boards, from a cost center to a relentless cost center to a critical strategic element that needs to be aggressively funded rather than aggressively reduced.
If you have any doubts about that, take a look again at these growth rates for the Cloud Wars Top 10, as they range from a high of 45% to a “low” of 22% (with the 83% of Snowflake serving as the icing on the cake).
No other industry in the world can even approach this level of growth, especially on an end-to-end scale – ergo, “the biggest growth market the world has ever seen”.
One of the reasons I’m so optimistic about this company’s future prospects — beyond customers realizing they need modern technology like humans need water — is that each of these 10 companies is constantly experimenting, pushing, innovating and disrupting. No one is standing or hoping to build on their past momentum.
Quite the contrary, in fact — and I think that means that as dynamic and global as this company is today, we are only beginning to see what is possible. Because the Cloud Wars are only heating up.