Despite being dwarfed in total revenue by both Microsoft Cloud and AWS, Google Cloud generated $4.8 billion in new Q2-over-Q1 revenue, topping AWS’s $4.6 billion, matching Microsoft Cloud’s number, and proving that in the here and now it has achieved full revenue parity with its larger rivals.
This measuring stick of new incremental revenue, in combination with growth rate, yields powerful insights into customers’ spending habits and reveals who’s winning new AI and cloud business right here and right now as opposed to aggregating big contract revenue from the past and rolling it forward.
And, while Microsoft and AWS are very properly proud of the huge and 100% legitimate revenue totals they’ve amassed in the past, we can gain additional insights into current market dynamics and customer preferences by isolating the incremental numbers from the most-recent quarter and using those as a barometer for who’s got the hot hand right now.
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