Comparison of the three largest cloud providers($AMZN, $MSFT, $GOOGL)
Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP) are the three largest cloud providers in the world. Each offers a wide range of services, including compute resources, storage, databases, networking, analytics, machine learning, and artificial intelligence.
AWS($AMZN) is the largest cloud provider (partly because it started first). It offers the widest range of services and has the largest customer base. It started providing cloud services in 2006.
Azure($MSFT) is the second largest cloud provider. It focuses on enterprise customers and offers strong integration with Microsoft products. It started providing cloud services in 2010.
GCP($GOOGL) is the third largest cloud provider. It focuses on innovation and offers the latest technologies. For the record, it is used by many governments around the world. It started providing cloud services in 2011 and is therefore the youngest of the companies mentioned in this industry.
Each of these cloud providers has its own strengths and weaknesses. AWS is chosen by customers who need a wide range of services and have a larger budget. Azure is suitable for enterprise customers who need strong integration with Microsoft products. GCP is a good choice for customers who need innovation and the latest technology.
*If the 3 companies mentioned were to compose 100% of the market share.
So far it is very uncertain. Amazon has not only gained a big lead due to longer time on the market, but Google and Microsoft will want to gradually reduce it. You can see in the figure how big the cloud market is ($63 billion in Q1 2023).
This fight for their piece of the pie is very important for these companies.
I have shares of $GOOGL in my portfolio and would like to buy shares of $MSFT below. I agree with Peter and Luke, I also have more faith in Google and Microsoft.
I have all three stocks in my portfolio, but probably many of us do. Now at the moment, like Peter, I have more faith in Google or Microsoft to tread on Amazon and that's only because of more work with AI. Again, Amazon is more diversified and I wouldn't worry about its price.
For me, sooner or later Amazon will start to lose share. I trust Google and Microsoft more here.