AWS, Microsoft, Google Cloud step up AI offerings

Cloud service providers such as Amazon Web Services (AWS), Microsoft and Google Cloud are adding AI components to offer value to their customers, research firm Canalys said recently.
Worldwide cloud services market share Q1 2023“This trend is expected to grow where AI can streamline and enhance workflows within enterprises,” said Yi Zhang, Research Analyst at Canalys.

Amazon Web Services launched Amazon Bedrock, a suite of cloud-based AI tools to rival its competitors.

Amazon Web Services (AWS) is the #1 cloud service provider in Q1 2023, accounting for 32 percent of total spending after growing 16 percent, dropping below the 20 percent growth mark for the first time, according to Canalys estimates.

Microsoft announced the availability of Azure OpenAI services, enabling more customers to build high-performance AI services on Azure. The combination of AI technology and cloud services paved new opportunities for Azure. It won more than 2,500 Azure OpenAI service customers including Coursera, Mercedes-Benz and Shell.

Microsoft Azure has 23 percent market share in the global Cloud market after it grew by 27 percent. Business performance is expected to remain steady as its backlog commitment increased to US$196 billion in Q1 2023.

Google Cloud is bringing AI advances to its cloud customers across its product portfolio. Google Cloud is committed to expanding its partner-led, partner-delivered service approach in 2023 and the investments in building its partner ecosystem are beginning to see some success. To date, more than 100,000 companies are part of the Google Cloud Partner Advantage Program.

Google Cloud grew 30 percent in the latest quarter and accounted for 9 percent market share. Its cloud business achieved profitability for the first time. Google Cloud’s initiative to extend its equipment lifecycle resulted in cost-efficiency gains, and it plans to optimize external procurement processes in the next few quarters to further improve profitability.

Worldwide cloud infrastructure services spending rose 19 percent to $66.4 billion in Q1 2023, Canalys report said.

Enterprises are reducing cloud spend as part of cuts to IT budgets, with a clear emphasis on optimizing cloud costs, gaining control over cloud wastage, and improving the efficiency of cloud deployments.

AWS, Microsoft Azure and Google Cloud announced staff layoffs and internal cost cuts in their cloud divisions in response to slowing growth.

APAC saw the weakest performance as customer spending reduced in Mainland China, impacting many of the Chinese hyperscalers.

Canalys expects global cloud services spending to continue to be slow through the second half of 2023.

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