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No Slowdown for Cloud Services

  • Oppenheimer & Co. Inc.
  • February 7, 2019

Early in the first quarter, two of the largest cloud providers reported strong growth, further supporting the view that enterprises are moving their computing workload to the cloud. Microsoft Azure grew 76%, in line with last quarter’s growth rate and Amazon Web Services (AWS) grew 45% vs. Oppenheimer analysts' 43% estimates.

Hybrid cloud demand is helping Azure, which noted strong activity around large deals (hybrid cloud combines on-premises and public cloud infrastructure). Additionally, healthcare verticals have been strong for Azure. Both cloud providers are using software and custom hardware (chips) to drive efficiencies in their data centers, supporting margin improvement.

cloud services

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