The cloud is no longer just an option, but a must-have for a business And it’s a fact that has been proven time and time again. Last week’s cloud revenues from Amazon, Microsoft, IBM and several other companies have shown that once again.
Last week’s winner when it comes to cloud revenues was Amazon. For the second consecutive quarter, this company broke their performance record for AWS, which showed its sales going up 81% from 2014, to $1.82B from the previous quarter.
Amazon Web Services is directly responsible for $391M of operating income. In addition, AWS is also expected to reach $8 billion in yearly cloud revenue.
Microsoft on its Way to $8 Billion in “Commercial Cloud” Revenue
Microsoft said it is also on its way to reach $8 billion in annualized “commercial cloud” revenue, much like Amazon. However, MS is a little bit different from Amazon in it that it offers its own Dynamics Saas (software-as-a-service) and Office 365 services, in addition to Azure.
Amazon, on the other side, only offers infrastructure and platform services via AWS. According to Microsoft, its commercial cloud revenues were up 88% from previous year. MS also expects to reach $20B in revenue from cloud in fiscal 2018.
IBM’s Cloud Revenues Reach $8.7B Over the Past Year
Another big company which showed up with impressive cloud revenues for the past year is IBM. And it topped AWS and Microsoft with $8.7 billion in the past year and revenues went up 70% when compared year over year, for the first half of 2015.
However, there is a little “but” when it comes to IBM’s cloud revenues, as they show numbers from services others might not see as “cloud”. Still, according to IBM, its “as-a-service” business was still on an impressive $4.5B yearly run rate. This includes the SaaS service Softlayer, and AaaS (analytics-as-a-service) via Watson Analytics and Cloudant.
SaaS-Only Providers Also Impress With Their Cloud Revenues
Companies that sell mainly SaaS services, such as Salesforce, have also impressed with their annualized cloud revenues.
- Salesforce – $1.51B in quarterly revenues, up 23%
- Oracle – $426M in quarterly revenues, up 29%
- Workday – $251M in quarterly revenues, up $57%
- Netsuite – $177M in quarterly revenues, up 35%
- SAP – $612M in quarterly revenues, up $129%
For instance, Salesforce, the largest SaaS-only company, reported its quarterly revenues were 23% higher than in the same period last year and are now at $1.51 billion.The company has also reported a $6B annual run rate.
Oracle said its SaaS and PaaS (platform-as-a-service) revenues were up 29% from last year and were $426 million. As for the IaaS (infrastructure-as-a-service) offering, Oracle said it was up 25% and reached $160M.
Other SaaS providers also reported good numbers when it comes to cloud revenue. Workday reported it went up 57% from last year and that it is currently at $251M in revenue. Netsuite reported cloud revenues of $177.3M (up 35%), while SAP reported about $612M in cloud revenues (SAP was up 129% from previous year).
What do you think about the results? Let us know in the comments below.