(Note: The author of this fundamental analysis is a financial writer and portfolio manager. He and his clients own shares of GOOGL and MSFT company.)
Cloud computing is a booming industry and is likely to continue growing as faster data speeds such as the fifth-generation of wireless technology (5G) allow companies to move more of their computing power to the cloud. It’s clear that the cloud is dominated by two big companies: Amazon.com Inc. (AMZN) and Microsoft Corp. (MSFT). What’s less clear is the status of another technology giant: Alphabet (GOOGL). Many estimate it to be a distant third. Each of these companies has seen their total revenue soar in recent years.
Here’s a detailed look at the cloud strategies and growth outlook for these three companies.
Amazon Web Services, known as AWS, had the fastest growth in 2018, with total sales jumping almost 50% to approximately $26 billion. Meanwhile, Microsoft and its Intelligent Cloud unit saw its revenue rise by 18% to $32.2 billion. Alphabet, on the other hand, does not publicly disclose its cloud revenue. However, the company did give investors a hint during its January 2018 conference call that its cloud business was a billion-dollar-per-quarter business.
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