Amazon vs Microsoft is a rivalry which has been going on for years. While the two do not compete in the same markets when it comes to their core business, there are, however, some overlaps. One such segment is that of cloud computing. However, it appears that Google might be the one who actually emerges as the unlikely winner of this battle for cloud computing.
While Amazon vs Microsoft is where the focus is on, Google is doubling down on its capital expenditure! Let us take a closer look:
Amazon vs Microsoft: The Battle for Cloud Computing!
When it comes to capital expenditure, Amazon spent $11.3 Billion last year. The company said that his was split between operations such as warehousing and Amazon Web Services (AWS). Microsoft spent $16 Billion as capital expenditures last year.
Compared to these two, Google spent $25.5 Billion on capital expenditure. This number is significant because it has doubled compared to what their spends in 2017 were. While Amazon vs Microsoft was where the markets were focusing on, Google looks to have pulled the rug from under their feet! This mammoth spending is likely to help the company with its rapid expansions, particularly in the cloud division.
Amazon vs Microsoft: Google Winning the Cloud Computing War?
Google has hired over 4,000 people in Q4 2018. A majority of these will be working in Google’s cloud computing division. Alphabet CFO Ruth Porat commented during the company’s earnings call that most of these were for technical and sales positions.
While Google doesn’t specify the exact revenue their cloud business made, their ‘other’ category showed a revenue of $6.5 Billion. AWS generated $7.5 Billion while Microsoft’s Azure managed to generate in excess of $9 Billion for the same quarter. However, with these mammoth capital expenditures, expect Google to win the Amazon vs Microsoft battle for cloud in 2019.
Source: Business Insider
