Dear Andy Jassy: Don't Try to Spin Google Cloud Outgrowing AWS By 2X or 2.5X

**Bob Evans** (0:00)
Hello, my friends, and welcome back to Cloud Wars Minute. We have earnings results coming up later this week from both Microsoft and AWS. Microsoft on July 29th, and AWS on July 30th. So that will give us some nice comparisons to the stunning Q2 that Google Cloud reported last week. And my advice after seeing that, those numbers from Google Cloud, I would ask, just advise Amazon CEO, Andy Jassy, don't try to spin this out performance by Google Cloud. It's, you know, it'll be somewhere. We'll find out on Thursday when the Amazon numbers come out, but Google Cloud will be outgrowing AWS by somewhere between two and a half times at the high end and at least two on the low end. To get to that 2x, it would take an extraordinary performance by AWS. In the last, over the last several quarters, Jassy has alluded to Google Cloud, not by name on YarnX Club, but he said, you know, we got some companies throwing up these fancy high growth rates. They're not as big as we are, so you really have to discount those growth rates. You know, I get that on some sense, but the inside that, what we see with these growth rates, that's the customers expressing their vote. And they are the ultimate arbiters in this decision about who is the hottest company. That's expressed in growth rates, which companies of these great choices that customers have is being selected to help those businesses move into the AI economy here. And the results of the gap between how quickly Google Cloud is growing, or AWS or Microsoft Cloud, it's quite extraordinary. And in a detailed article I've got later this morning on cloudwars.com, I go into a lot of detail about that, lots of side-by-side comparisons. And I also try to point out here some of the reasons what this means about what customers are saying right here, and that it isn't just a matter of AWS is bigger than Google Cloud and Microsoft is bigger, therefore you can really discount and pooh-pooh the Google Cloud growth rates. So let's take a look at these. And again, I'm comparing Q2 here for Google Cloud versus Q1 for AWS because AWS right now, their Q2 numbers aren't out yet. So for Q1, AWS grew at 28%. For Q2, end of June theory, the Google Cloud grew 82%.
Now, say that AWS reports this massive acceleration for Q2 that it went from 28% Q1 to 40% for Q2, they would still be being outgrown by Google Cloud by 2x. My guess is that AWS growth rate for Q2 is going to come in somewhere around 30 or 31%.
So, this 2.5x would still hold there. And it's just something that now is becoming a little tiresome and sort of a cliche for these bigger companies to just say, well, we're bigger than them. Of course, they have a higher growth rate. It doesn't really mean anything. So, the customers are voting here, and in that article that I've got coming up later today, I point out several specific things that show in terms of what customers want and need, why these growth rate disparities are so important and what they tell us about how the different vendors are doing in the marketplace through the eyes and wallets of customers.
This is something that is happening here. We've talked about this a long time that, you know, in the Cloud Wars, the customers are always, always the big winners. And, you know, this is a weird one here because this market is so big moving into AI.
Every company in the world wants to do that. So you see Microsoft and AWS with bigger revenues growing their Cloud businesses, you know, in the range of 30 percent. It's absolutely astonishing. You got to take your hats off to them for that. But when you're trying to figure out who is performing best, then you look at Google Cloud, which had, for the quarter end of June 30th, an 82 percent growth in revenue. Also, their backlog grew almost 400 percent, over 500 billion dollars. They're just performing really well. Now, you got to give some slack to AWS, Microsoft. Maybe when their numbers come out later this week for Q2, they too will be up in the 82 percent range. I don't think they're going to come anywhere close to that. I think if they accelerate to 40, it would be an extraordinary achievement. So good job to everybody, but Google Cloud is just clearly by the numbers, the king of the hill right now. Thanks for being with us here at Cloud Wars Minute, and I hope you have a fantastic day.