So, rounding out some earnings numbers, Amazon was also ridiculously successful. Amazon delivered net income of $8.1B on revenues of $108.5 billion, a record for the first quarter. AWS, now 15 years old, is a $54 billion dollar business, and its growth rate is 32% year on year.
Canalys has cloud computing data out — Spending on global cloud infrastructure services grew 35% to US$41.8 billion in Q1 2021. In first place- Amazon Web Services (AWS), which accounts for 32% of total spend on cloud infrastructure. In second place was Microsoft Azure, which took 19% market share in Q1 2021 and grew 50% for the third consecutive quarter. Google Cloud grew 56% in Q1 2021 and clinched a 7% market share.
While I’m talking about Amazon, an appeals court has ruled that Amazon can be held liable for products sold on its marketplace by a third-party seller. This is the second time Amazon’s position has been rejected.
And, it seems an internal audit, discovered by Politico, warned Amazon’s leadership in 2015 that sales had unauthorized access to that third party data – and had one case in which the employee used that access to improve sales.
Why do we care?
Explosive growth from the big tech providers, as the pandemic accelerated the previous trend. Transform is the wrong word, as this was already happening – this just boosted that trend. Amazon v Microsoft is the main event – but as noted last year, this is a new profit center for Google, and 7% of a massive market is still huge.
I couple that with the reckoning that’s happening. Regulators are examining the impact from BEFORE the acceleration. Which will lead us into the next story…..