Home / Business and Economy / AWS Faces Intensifying Cloud Competition as Microsoft and Google Surge
AWS Faces Intensifying Cloud Competition as Microsoft and Google Surge
31 Jul
Summary
- AWS revenue growth slows to 18% in Q2
- Microsoft and Google report higher cloud growth rates
- Microsoft's Azure revenue exceeds $75 billion in fiscal year
As of July 31, 2025, Amazon's cloud computing division, AWS, continues to lead the cloud infrastructure market, but is facing growing competition from Microsoft and Google. In the second quarter of 2025, AWS recorded revenue growth of 18%, slightly ahead of analysts' estimates.
However, Microsoft and Google have been rapidly gaining ground in the cloud computing space. Microsoft reported that revenue from Azure and other cloud services exceeded $75 billion in the fiscal year ending June 30, 2025, with growth of 39% in the latest quarter. Alphabet, Google's parent company, also reported strong cloud computing results, with revenue of $13.62 billion for its cloud business, a 32% increase from the previous year.
The intensifying competition in the cloud market has put pressure on AWS, which still dominates the industry but is seeing its growth rate slow compared to its rivals. The race to capitalize on the booming demand for cloud services and artificial intelligence has become a key battleground for the tech giants, as they invest heavily in these areas to stay ahead of the competition.
