Top 10 Cloud Computing Companies
1. Amazon Web Services
Amazon Web Services (AWS) is the undisputed market leader in cloud computing. According to Amazon's most recent quarterly financial report, AWS generated $2.9 billion in revenue for the quarter ending June 30, 2016, up from $1.8 billion during the same quarter last year.
The company offers a complete range of IaaS and PaaS services. Among the best known are its Elastic Compute Cloud (EC2), Elastic Beanstalk, Simple Storage Service (S3), Elastic Block Store (EBS), Glacier storage, Relational Database Service (RDS), and DynamoDB NoSQL database. It also offers cloud services related to networking, analytics and machine learning, the Internet of Things (IoT), mobile services, development, cloud management, cloud security and more.
2. Microsoft Azure
It's a little more difficult to figure out how much revenue Microsoft generates from cloud computing. In its fiscal 2016 Q4 report, the company said that its "Intelligent Cloud" revenue increased 5 percent to reach $6.7 billion. That makes it seem like Microsoft does more cloud business than Amazon, except that Microsoft includes its very substantial server revenues along with its Azure cloud computing service in the Intelligent Cloud category. The company has previously said that its Azure business is on a $10 billion annual run rate, or around $2.5 billion in revenue per quarter. Most market analysts put it in the number two spot behind Amazon.
In addition to its Azure IaaS and PaaS offerings, Microsoft also has several SaaS offerings, including its Office 365 products, the online versions of its Dynamics line of enterprise software and its online developer tools.
Although it hasn't always been considered one of the "big three" cloud computing vendors, IBM's cloud business has been coming on strong. In its most recent quarterly report, IBM said that its "cloud-as-a-service revenue was up 50 percent," and had an annual run rate of $6.7 billion.
IBM's most visible cloud service is its Bluemix PaaS, which is aimed primarily at enterprise development teams. The company also a lot of enterprise software on a SaaS basis, and it sells cloud infrastructure, cloud management tools and cloud managed services.
4. Google Cloud Platform
Google doesn't break out its cloud computing numbers, so it's very difficult to tell how much revenue its Cloud Platform generates. In a recent report, Synergy estimated that Google is fourth in the IaaS and PaaS market with a 4 percent share of the market. The report also noted that Google's cloud revenue is climbing rapidly, surging 108 percent year-over-year in 2015.
Like Amazon and Microsoft, Google offers a very full range of IaaS and PaaS services that span compute, storage, networking, big data, machine learning, developer tools and security. Some of its best-known cloud offerings include Compute Engine, App Engine, Container Engine, Cloud Storage and BigQuery.
Unlike the other companies highlighted on this list so far, Salesforce.com makes nearly all of its money from the cloud. For fiscal 2017 Q1, it reported $1.92 billion in GAAP revenue, a 27 percent year-over-year increase.
Most of Salesforce's revenue comes from its SaaS offerings, which it divides into three categories: Sales Cloud, Service Cloud and Marketing Cloud. The Sales Cloud is the biggest, accounting for 41 percent of Salesforce's cloud revenue. The company also has three PaaS offerings for developers: App Cloud, Force.com and Heroku.
When you think of big cloud computing companies, Adobe might not be the first company that comes to mind, but like Salesforce.com, Adobe generates substantial revenues from its SaaS offerings. For the second quarter of 2016, the company reported that it had $755 million in revenue from its Creative Cloud products, $385 million from Marketing Cloud and $188 million from Document Cloud. That's a total of $1.3 billion in quarterly revenue from cloud computing.
In the past, Adobe sold desktop versions of its software for creative and marketing professionals, but it 2013, it moved to a cloud-only model. The best-known components of its Creative Cloud offering include Photoshop photo editing, Illustrator vector graphics, InDesign page layout and Premiere Pro video editing.
7. Oracle Cloud
Oracle has a long way to go to catch the market leaders, but it is seeing strong growth for its cloud computing offerings. For fiscal 2016 Q4, Oracle reported that its total cloud revenues were $859 million, a 49 percent increase. Its SaaS and PaaS sales were particularly strong, climbing 66 percent to reach $690 million.
Oracle touts its public cloud as "the industry's broadest and most integrated." Its SaaS applications include HR Cloud, CX Cloud, ERP Cloud, EPM Cloud, SCM Cloud and Analytics Cloud.
Enterprise software heavyweight SAP is also experiencing strong growth in its cloud computing offerings. In its most recent financial statement, it reported cloud subscription and support revenue totaling 720 million euros, or about $805 million. According to the company, that represented a 30 percent increase.
SAP offers a wide range of SaaS solutions, as well as its HANA Cloud Platform PaaS and its HANA Enterprise Cloud IaaS. According to the company website, it has 110 million cloud subscribers.
Rackspace earns nearly all of its money from cloud computing, although its business model is a little bit different than the other cloud computing companies on this list. While it does offer dedicated hosting in its data centers, it also offers support and services for companies running workloads on the other leading public clouds. It claims to be the world's largest managed cloud provider.
In its most recent quarterly report, Rackspace announced $518 million in total revenue, a 7.9 percent quarterly increase. The company expects second quarter revenue to be between $519 million and $524 million.<
Another slightly surprising entry on this list, Workday offers cloud-based business software. In the quarter ended April 30, 2016, the company reported subscription revenues of $280.0 million, a 39 percent year-over year increase. Total revenue was $345.4 million.
Workday's best-selling products are its SaaS solutions for finance and HR teams. It also offers professional services automation, enterprise planning and higher education solutions.
According to IDC the public cloud computing market is on pace to double over the next four years, climbing from around $70 billion in 2015 to more than $141 billion by 2019. That huge market offers a tremendous opportunity for those companies that establish themselves as leaders in the cloud computing space.
We've sorted through financial reports and market research to generate a list of the ten top cloud computing companies. While many technology companies offer cloud-related products and services, we concentrated on infrastructure-as-a-service (IaaS), platform as a service (PaaS) and software-as-a-service vendors for this slideshow.
The companies are ranked in order of their estimated cloud revenue. However, many vendors don't separate cloud computing from their other sales numbers, so the rankings are approximate.
Interestingly, all of these companies had notable increases in cloud computing sales in their most recent quarterly reports. In fact, several reported double- or even triple-digit growth in cloud revenues.