Cloud Earnings All About AI, Key Execs Leave AWS, VMware
Between the latest cloud earnings and some high-profile executive departures at Amazon Web Services and VMware by Broadcom, this week is hopping with cloud news.
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Cloud computing revenue is up at all three hyperscalers, largely due to ongoing generative AI rollouts.
Microsoft and Google, parent companies of Azure and Google Cloud, issued their latest earnings on Jan. 30. Amazon, which owns Amazon Web Services, released its numbers on Feb. 1.
Starting With Microsoft
Over at Microsoft, the Intelligent Cloud division, which houses Azure, saw a 20% rise in revenue, reaching nearly $25.9 billion for the last quarter. Microsoft said revenue from Azure and other cloud services grew 30%. Most of that stemmed from demand for Microsoft’s artificial intelligence technology, said Amy Hood, chief financial officer — to the tune of six percentage points.
CEO Satya Nadella also noted that Azure now counts 53,000 new AI customers, one-third of whom came to the platform in the last year.
Meanwhile, revenue from the Productivity and Business Processes and More Personal Computing segment also increased. The former, which encompasses the Office Suite, LinkedIn and Dynamics, reached just shy of $19.3 billion, up 13%. The latter, comprising Windows, Surface, Bing and Xbox, contributed almost $16.9 billion in revenue, up about 19%.
Over to Google Cloud
Google Cloud reported 26% revenue growth for a total of $9.2 billion. It also saw operating income of $864 million, compared to a loss of $186 million a year earlier. Alphabet, the parent company of Google Cloud, attributed the increases to consumption-based cloud computing fees, as well as subscriptions for Google Cloud Platform services, Google Workspace communication and collaboration tools, and other enterprise services.
The company has yet to show full impact from the recent release of its ChatGPT-killer, Google Gemini.
Wrapping Up with AWS
Finally, AWS showed 13% higher revenue on Feb. 1, amounting to $24.2 billion for the final quarter of 2023. Operating income also rose, increasing to $7.2 billion, up from $5.2 billion a year earlier.
For the full year 2023, AWS reported more revenue by 13% year-over-year, reaching $90.8 billion.
In a press release, Amazon CEO Andy Jassy credited the numbers to generative AI services including Bedrock, Q and Trainium, as well as AWS’ “continued long-term focus on customers and feature delivery.”
Whit Crump (pictured), who oversaw worldwide channel and customer programs for AWS Marketplace, has left the world’s largest public-cloud computing company.
AWS confirmed Crump’s departure to Channel Futures.
Industry rumor mill has it that Crump is headed to Google Cloud and its marketplaces group. Channel Futures was awaiting a response from Google Cloud at time of publication.
Such a switcharoo would be interesting. Stephen Orban left Google Cloud’s marketplaces unit in June 2022 for AWS. He made his debut as Google Cloud’s vice president of migrations nearly a year later. Now Crump looks to be on his way to Orban’s old stomping grounds.
Meanwhile, Zia Yusuf, head of strategic ecosystem and industry solutions for VMware, is exiting that vendor as Broadcom continues to dismantle its new acquiree and undo its partner program. It was unclear whether Yusuf resigned or was laid off. From the sounds of it, according to Yusuf’s Feb. 1 LinkedIn post, the move was unexpected.
“As for me - some great trips planned with the family in the short term and already engaged in series of conversations about what to do next,” he wrote. “I hope to have the courage to have my heart instead of my mind determine where I spend my time and energy next.”
Yusuf leaves alongside another high-profile VMware channel executive. Channel Futures will publish that article on Feb. 2. Yusuf worked for VMware for a little more than two years, including the few months since Broadcom closed the $61 billion purchase of the multicloud vendor.
Cisco and Hitachi Vantara this week launched a joint managed as-a-service portfolio for enterprises running hybrid cloud environments.
Hitachi EverFlex with Cisco Powered Hybrid Cloud features converged infrastructure services combining compute, networking and software from Cisco and storage from Hitachi. End users (and/or their channel partners) may tweak the offerings as needed.
The approach “can help overcome challenges often present in hybrid cloud deployments, such as operational complexity, rising costs, increasing security risk and demands for faster time to value,” wrote Jeremy Foster, senior vice president and general manager of Cisco Compute, in a Jan. 31 blog.
In addition, Foster said, managed services “help our channel partners diversify and differentiate their businesses, within key areas of demand including hybrid cloud. With this managed service offering, Cisco and Hitachi channel partners can access … solutions powered by two … brands that meet dynamic business requirements.”
The purchasing model for Hitachi EverFlex with Cisco Powered Hybrid Cloud is consumption-based.
Own Company on Feb. 1 unveiled its global channel partner program.
The New Jersey-based SaaS data platform provider is targeting resellers and system integrators focused on preventing customers’ data and metadata loss.
The new initiative “not only underscores our commitment to protect and activate SaaS data, but also unfolds a vast realm of opportunities for our partners,” said Kevin Delane, chief revenue officer at Own. “This launch marks a pivotal moment in our ongoing efforts to nurture and fortify our partner ecosystem, setting the stage for mutually beneficial growth and success.”
Large organizations intend to ramp up their reliance on multicloud environments over the next two years.
That’s the big takeaway from OVHCloud’s new survey of 504 IT decision-makers. Only 23% of those respondents see their cloud journeys as “plain sailing,” said OVHCloud, a Europe-based cloud managed services provider.
“Four out of five organizations are either actively using or transitioning to multicloud environments, but the political and technical complexity, not to mention the skills required for this transition brings enormous potential for the channel,” said David Devine, partner program manager at OVHcloud.
Survey respondents rated security and technical complexity as their most pressing concerns, at 31% and 27%, respectively. They ranked the benefits of more flexibility and less risk at 51% and 39%, also respectively.
“Mixing and matching workloads to the right cloud environments can bring tremendous benefits, but with this flexibility comes complexity and a greater number of endpoints to secure and manage,” Devine said. “However, by getting to know a customer’s environment, giving good consultancy and being able to offer a range of multi- and hybrid cloud solutions with a broad range of vendors, channel partners can build both long-term relationships and long-term margin.”
Research firm Censuswide conducted the survey on OVHCloud’s behalf.
Large organizations intend to ramp up their reliance on multicloud environments over the next two years.
That’s the big takeaway from OVHCloud’s new survey of 504 IT decision-makers. Only 23% of those respondents see their cloud journeys as “plain sailing,” said OVHCloud, a Europe-based cloud managed services provider.
“Four out of five organizations are either actively using or transitioning to multicloud environments, but the political and technical complexity, not to mention the skills required for this transition brings enormous potential for the channel,” said David Devine, partner program manager at OVHcloud.
Survey respondents rated security and technical complexity as their most pressing concerns, at 31% and 27%, respectively. They ranked the benefits of more flexibility and less risk at 51% and 39%, also respectively.
“Mixing and matching workloads to the right cloud environments can bring tremendous benefits, but with this flexibility comes complexity and a greater number of endpoints to secure and manage,” Devine said. “However, by getting to know a customer’s environment, giving good consultancy and being able to offer a range of multi- and hybrid cloud solutions with a broad range of vendors, channel partners can build both long-term relationships and long-term margin.”
Research firm Censuswide conducted the survey on OVHCloud’s behalf.
Between the latest cloud earnings and some high-profile executive departures at Amazon Web Services and VMware by Broadcom, this week is hopping with cloud news.
We start with a quick look at the hyperscalers’ cloud earnings from the quarter ending Dec. 31, 2023. Microsoft Azure, Google Cloud and AWS all reported revenue growth. The thread tying those increases together? Artificial intelligence, of course, alongside ongoing demand for public cloud computing in general.
From there, we fill you in on who’s jumped ship from AWS Marketplace. There’s also a big hole at VMware by Broadcom as a key channel exec departs in the wake of Broadcom’s dismantling of VMware’s products and partner program.
After that, get the scoop on a new joint offering from Cisco and Hitachi Vantara. And Own Company has some big channel news while OVHCloud shares some significant findings on the future of multicloud deployments.
Click the image above to kick off this week’s cloud computing news roundup with a look at cloud earnings.
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