Microsoft Beats Amazon in 12-Month Cloud Revenue
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Re: Microsoft Beats Amazon in 12-Month Cloud Revenue
#2Incredible results, congratulations to Microsoft. What’s the combined annual run rate for the Top 5 providers now and is there a sensible breakdown in IaaS, PaaS and SaaS or is it predominantly combined reporting?
Re: Microsoft Beats Amazon in 12-Month Cloud Revenue
#3What I learned from this article: Microsoft not only considers their Office subscriptions to be cloud revenue (I knew that already), but apparently LinkedIn, as well.
Re: Microsoft Beats Amazon in 12-Month Cloud Revenue
#4Microsoft may have better products or cloud services, but I’m not sure what’s the takeaway here. $23 vs $26.7 billion... okay, interesting... now tell us what share Amazon has vs Microsoft. Is the difference enough that Microsoft is a little bit behind or at this difference rate, would it still take Microsoft 3 years or 10 years to catch up? Maybe help understand what’s driving that.
Author also wrote this article, which if you look at his list of insights on why Microsoft is positioned better, has no substance. It reads more like an ad.
https://www.forbes.com/sites/bobevans1/2018/07/26/why-amazon...
Clickbait without substance.
Re: Microsoft Beats Amazon in 12-Month Cloud Revenue
#5We used to use the word Cloud as VM, or Hardware Infrastructure related only. Now every online Services are "Cloud Revenue." Adobe should rename their Subscription as "Cloud Revenue" as well. I am sure Wall Street like a new spin on everything.
While for Amazon, how is Online Retailing not "Cloud Revenue", or pretty much everything for Amazon should be Cloud Revenue.
Re: Microsoft Beats Amazon in 12-Month Cloud Revenue
#6Suggest that readers look at cloud revenue from a business model perspective, not a technology one.
Cloud revenues between Amazon and MS are comparable from an investment point-of-view:
- sticky (unless something bad happens, if you're a paying customer in month 1, you're probably still a paying customer in month 2)
- service delivered "in the cloud" (neither vendor needs a local brick/mortar storefront)
- fixed cost: data centers, variable cost: "things" in data centers
- for enterprise accounts: high-touch salesforce and dedicated contacts
- for end-user / SMB accounts: primarily self-service via online tools
Yes, one of them gets more revenue from IaaS and the other from SaaS. Each of these, and the specific submarkets that the two of them play in, will have different growth rates and potential and affect their respective valuation.
Still, from an investment standpoint, based on the above characteristics, I'd feel reasonably good about comparing the two of them on financial and valuation metrics for the "cloud" parts of their respective businesses.
Re: Microsoft Beats Amazon in 12-Month Cloud Revenue
#7Posted 19 days ago: https://news.ycombinator.com/item?id=18383553
Re: Microsoft Beats Amazon in 12-Month Cloud Revenue
#8That’s pretty interesting. One thing to keep in mind when thinking about aws cloud revenue, they bill internal teams for cloud revenue. I don’t know how much of aws revenue comes from internal teams, but at least part of it is essentially moving money around.
Re: Microsoft Beats Amazon in 12-Month Cloud Revenue
#9We used to use the word Cloud as VM, or Hardware Infrastructure related only. Now every online Services are "Cloud Revenue." Adobe should rename their Subscription as "Cloud Revenue" as well. I am sure Wall Street like a new spin on everything. While for Amazon, how is Online Retailing not "Cloud Revenue", or pretty much everything for Amazon should be Cloud Revenue.
well, Amazon gets to charge for hosted database, cache, queues etc. So I cans see why Microsoft will decide to claim hosted software as well. The real reason tho is more that Wall Street has no idea and it looks like they have grown really fast, caught up and passed AWS.
Re: Microsoft Beats Amazon in 12-Month Cloud Revenue
#10That’s pretty interesting. One thing to keep in mind when thinking about aws cloud revenue, they bill internal teams for cloud revenue. I don’t know how much of aws revenue comes from internal teams, but at least part of it is essentially moving money around.
By that measure, FB is one of the biggest cloud provider in the world.
That would be incredibly misleading. Do you have a source?