Amazon dominates the world, can Alibaba Cloud catch up with AWS?

The latest report shows that the global cloud service market scale in the fourth quarter of 2018 was 22.7 billion US dollars, and the whole year was as high as 80 billion US dollars, still maintaining a rapid growth trend, an increase of 46% year-on-year. In terms of market revenue, Amazon AWS dominated the world with an annual revenue of $25.4 billion, far ahead of other competitors, followed by Microsoft with $13.5 billion, and Google Cloud in third place with a revenue of $6.8 billion. The world's three largest cloud service providers account for 57% of the global market share aws vs alibaba cloud pricing.

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Five cloud giants: Amazon dominates the world, can Alibaba Cloud catch up with AWS?

Ranked fourth and fifth are Alibaba Cloud and IBM, with revenues of $3.2 billion and $3.1 billion, respectively. The above data comes from Canalys. The top five cloud service providers account for 65% of the global market share. However, Amazon AWS has 8 times as much revenue as them, and the gap is huge. It is very difficult to surpass Amazon.

AWS is the global leader, helping Amazon to compete for the market value champion aws vs alibaba cloud pricing

From its establishment in 1995 to 2018, Amazon’s market value exceeded the trillion-dollar mark, setting a historical record. Now, it is competing with Microsoft and Apple for the first brother in global market value. This is also the first time since its establishment that it has topped the global market value champion. In addition to the core business of e-commerce, Amazon has invested in cutting-edge technologies such as cloud computing and artificial intelligence, making Amazon the company with the most investment value today. AWS cloud services have achieved a business miracle until now, and have been the only company in the field of cloud services for a long time. Leading the way aws vs alibaba cloud pricing.

Amazon dominates the global cloud service market, and cloud services continue to expand and expand. Facing the general trend and background of the Internet of Everything, Amazon released the AWS IoT platform in 2015, which can cross the edge site to the cloud, so as to seize the Internet of Things application market. Additionally, AWS IoT integrates with services such as Lambda to generate end-to-end IoT applications aws vs alibaba cloud pricing.

Amazon AWS ranks first in the global cloud market. Last year, data from Amazon AWS CEO showed that AWS’ global share was as high as 51.8%. According to recent Canalys data, Amazon AWS’s revenue in 2018 was 254 USD, equivalent to RMB 171.3 billion. Yuan, which is 11.9 billion US dollars higher than Microsoft, and Alibaba Cloud and IBM are far behind AWS, and AWS’s revenue scale is as much as eight times that of them.

AWS is also the source of Amazon’s profit. In 2018, the total profit was US$11.7 billion, but the profit of AWS was as high as US$7.322 billion, accounting for 62.5% of the total profit. In addition, AWS cloud service revenue in 2018 increased by 47% year-on-year. Because it has been in a rapid growth trend, it is expected that the revenue scale will exceed 100 billion US dollars by 2022. The core of driving Amazon’s soaring market value lies in cloud and AI capabilities, building an intelligent ecosystem around the artificial intelligence assistant Amazon Alexa, and in the consumer Internet of Things, Amazon uses speakers as the point, voice interaction as a means, and ecology to open the home smart life The entrance is regarded as a global model.

Microsoft's transformation to the cloud has achieved results, once again sitting on the throne of the world's market capitalization champion

The reason why Microsoft can rise again is that it is actively transforming towards the cloud and AI. Yang Jianyong, a senior expert in the Internet of Things, pointed out that Azure cloud services have grown rapidly, with a year-on-year increase of 76% in the first two quarters of fiscal 2019, driving the strong growth of intelligent cloud services and making the overall performance a new achievement. In fiscal 2019, Q1 and Q2 intelligent cloud revenue was US$8.6 billion and US$9.4 billion, respectively, a year-on-year increase of more than 20%, and revenue in the first two quarters increased by 15% year-on-year to US$61.6 billion.

Although Microsoft's annual report does not disclose the specific revenue of Azure, the data given by Canalys shows that the scale of Microsoft Azure reached US$135 in 2018, second only to Amazon AWS, more than twice that of Google Cloud, and four times that of Alibaba Cloud and IBM. times as much. Microsoft, a former technology giant, has achieved success in its transformation to cloud services. In the past five years, its core products and strategies have undergone tremendous changes, from a traditional software company to a platform-based enterprise.

It's all thanks to Nadella, as Microsoft's third CEO, who brought Microsoft back to life. Since Nadella became CEO in 2014, after four years, Microsoft's revenue has exceeded 100 billion US dollars, and it has become the world's market capitalization champion. As of February 8, Microsoft's market value was 810.7 billion US dollars, and Apple's was 803.5 billion US dollars. At present, the ranking of the world's four largest technology giants is led by Microsoft, followed by Apple, Amazon and Google.

Yang Jianyong further pointed out that as more and more enterprises begin to deploy the Internet of Things, Microsoft's cloud + AI ecosystem has been widely used in various industries such as the Internet, retail, finance, intelligent hardware and industrial manufacturing. $5 billion will be invested in the next few years. For Microsoft, it will benefit from the great wave of the Internet of Things to bring huge opportunities, and some institutions even predict that Microsoft's market value is expected to hit a new high this year and enter the trillion-dollar club.

Google is an underrated tech giant

The market capitalization of the world's five largest Internet giants as of February 10 is Amazon's $780.1 billion, Google's $761.3 billion, Facebook's $477.6 billion, Alibaba's $433.8 billion, and Tencent's $419.3 billion, but the five Internet companies compete in specific areas, such as Alibaba and Tencent. The market is mainly concentrated in China, forming a global competition pattern compared to Amazon and Google.

Amazon focuses on e-commerce, while Google focuses on search engines. Although Amazon's advertising business has grown rapidly to reach a scale of 10 billion US dollars, it is far from Google's scale of more than 100 billion US dollars. However, the competition in the cloud and AI emerging markets is fierce. Overall, Google Cloud is more than four times worse than Amazon AWS, but Google Assistant is far ahead of Amazon Alexa. With the global Android ecosystem, Google has more than 1 billion devices equipped with Google Assistant, while Amazon claims that 100 million devices are equipped with Amazon Alexa. The difference between the two is tenfold.

The world's four major technology giants, Google is underestimated in my opinion. Microsoft, which has been sleeping for many years, led him back to the top under the leadership of Indian Nadella. And Google, under the leadership of the Indian Sundar Pichai, has invested heavily in artificial intelligence. Many years ago, Google CEO Pichai said confidently that artificial intelligence is the next wave in the technology world and a new direction for the development of computer technology. The era will be dominated by Google.

Now in the critical period of artificial intelligence commercial applications, Google has opened up its cloud and AI capabilities to the world with its deep learning chip TPU+Google Cloud+TensorFlow combination model. This model will not only impact semiconductor manufacturers, but also change the model of selling cloud services. , including Amazon's machine learning-specific chip Inferentia, which also opens services to the outside world in a cloud service model.

Although Microsoft, Amazon and Apple are currently in a state of intense competition for the top market value, Amazon founder Bezos is caught in a controversy over indecent photos. He was hit by the news and fell 1.62% on February 8, losing $12.8 billion in market value, making Amazon under pressure in the capital market. Apple’s iPhone demand is sluggish, and it has encountered learning in the capital market. For Google, the search business is also showing a steady growth trend, and it focuses on promoting AI technology research and cloud computing projects. Although Google’s market value is difficult to break through trillions of dollars in a short period of time , but is expected to surpass Amazon and Microsoft to become the world's most valuable company.

at last

The global cloud service market is mainly concentrated among Amazon, Microsoft and Google. The competition among these three around cloud computing will become more and more intense. In the face of Microsoft's rapid growth, whether AWS can resist Microsoft's attack will require market and time. to check. In addition, compared with the top three global giants, Alibaba Cloud and IBM have far different revenue scales, and it is almost impossible to catch up with AWS. However, in the era of Internet of Things, cloud services are used as infrastructure. As more and more enterprises begin to deploy the Internet of Things, cloud service providers will surely benefit. Among them, IBM has ended the seven-year decline in performance due to the growth of cloud business. In 2018, both revenue and profit growth resumed.

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