The Cloud Computing Boom: Which Tech Giants Are Actually Winning?

Question

Cloud computing is quietly reshaping the entire tech landscape. While the broader tech sector is struggling, cloud keeps firing on all cylinders — Gartner predicts the global public cloud services market will hit $591.8 billion in 2023, a 20.7% jump from last year. That’s the kind of growth chart investors dream about.

But here’s the thing: not all cloud players are created equal. Let’s break down who’s actually dominating.

The Heavyweight Division

Amazon Web Services (AMZN) remains the undisputed king, controlling 34% of cloud infrastructure as of Q3 2022. AWS revenue climbed from $45 billion in 2020 to $62.2 billion in 2021, and hit $20.53 billion just in Q3 2022. It’s a cash machine.

Microsoft (MSFT) is playing catch-up but doing it hard. Microsoft Cloud just hit $27.1 billion in quarterly revenue (up 22% year-over-year), finally closing the gap with AWS. CEO Satya Nadella is banking big on AI integration — positioning Microsoft Cloud as the next computing platform.

Google (GOOG/GOOGL) holds 11% market share. Their cloud segment exploded 47% year-over-year in 2021, reaching $19.2 billion. They’re the underdog nobody’s sleeping on anymore.

The Specialized Plays

Salesforce (CRM) dominates Customer Relationship Management cloud services with 12% year-over-year growth. They’ve been Gartner’s top-rated provider for five straight years.

IBM (IBM) pivoted hard into hybrid multi-cloud environments. Their hybrid cloud revenue topped $22 billion in 2022, up 11% — proving enterprise customers can’t live without this segment.

Adobe (ADBE) quietly built a cloud powerhouse. Document Cloud revenue jumped 21%, Creative Cloud grew 10%, and their Digital Experience segment showed 15% year-over-year growth. Most people don’t realize Adobe is a cloud company now.

The International Contenders

Alibaba (BABA) dominates Asia Pacific as the third-largest IaaS provider globally, with $11.76 billion in annual cloud revenue (up 23%). They’re smart too — diversifying into non-internet industries, which now represent 58% of cloud revenue.

Huawei (privately held) commands 19% of China’s cloud market and ranks in the global top 5 IaaS providers with 4.6% market share. They’re the fastest-growing major cloud player and expanding aggressively into Southeast Asia.

Oracle (ORCL) is the wild card — one of only four companies (with Amazon, Google, Microsoft) selected by the U.S. Defense Department for military cloud contracts. Their cloud services hit $8.6 billion in Q2 2023, up 14%, with guidance for 30%+ cloud revenue growth in 2023.

The Bottom Line

These 15 major players capture 60% of all public cloud revenue. The market is consolidating, but there’s still room for differentiation: AWS owns infrastructure, Microsoft owns AI integration, Google owns data analytics, Salesforce owns CRM, and the Asian players own their regional moats. The cloud computing wave isn’t slowing — it’s accelerating.