Technology giants Microsoft and Google have revealed the performance of their Cloud business during the March quarter of 2022.
Canalys research report earlier said total cloud infrastructure services spending grew 35 percent to $191.7 billion in 2021 from $142 billion in 2020. The top three Cloud vendors in Q4 2021 were Amazon Web Services (AWS), Microsoft Azure and Google Cloud — accounting for a combined 64 percent share of customer spend.
The total market size for cloud infrastructure services spending for Q1 2022 is yet to be released by research agencies.
Microsoft forecast double-digit revenue growth for the next fiscal year, driven by demand for cloud computing services.
Microsoft forecast Intelligent Cloud revenue of $21.1 billion to $21.35 billion for its fiscal fourth quarter, driven by strong growth in its Azure platform.
“If there is any macro headwind, where you have more value for less price means you win. In our case, when it comes to our commercial cloud offerings, we have advantages on that across the stack,” Microsoft CEO Satya Nadella said in a news statement.
Third-quarter Azure annual growth of 46 percent was steady from the previous quarter and in line with estimates of 45.6 percent growth. Still, Azure growth has showed a steady drop from fiscal 2020 when it was in the 60 percent range.
Microsoft’s Satya Nadella said the number of $100 million-plus Azure deals more than doubled year-over-year in the third quarter.
Microsoft chief financial officer, Amy Hood, said the company’s business could be impacted if China’s shutdown over the pandemic extends into May, though the current impact of the shutdowns is already reflected in Microsoft’s outlook.
Microsoft reported revenue of $49.36 billion and net income of $16.73 billion.
Google parent Alphabet on Tuesday reported that Google Cloud’s growth rate in the first quarter fell to 43.8 percent, from 44.6 percent in the 2021 fourth quarter.
Google Cloud increased revenue in the first quarter by 44 percent compared with a year ago to $5.82 billion.
Alphabet Chief Financial Officer Ruth Porat said it was too early to predict when sales slowed by the war may pick up and warned that the strengthening U.S. dollar would hurt sales even more in the current quarter.
Alphabet said first-quarter sales rose 23 percent to $68.01 billion.