Cloud Giants: Why Amazon and Alphabet Outshine Microsoft

The cloud computing market is thriving due to AI workload demand, and three major players are set to benefit from this trend.

AWS (Amazon) holds the largest market share but has a slowest growth rate of 37% in Q2. Google Cloud (Alphabet), on the other hand, grew by an impressive 82% year over year, with an operating margin of 36%

Microsoft's Azure division is also growing, but its revenue growth rate has been steady at around 40% over the past few quarters, which raises concerns that it may struggle to keep pace with AWS and Google Cloud in terms of market share

The author of this analysis believes that Microsoft's overall profits are not keeping up with its peers, as measured by operating income growth. This trend is likely to continue unless Microsoft can accelerate its cloud growth.