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Google Cloud vs AWS in 2022 (Comparing the Giants)

Posted on October 25, 2022 by

Categories: AWS

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Companies continue to make the transition into cloud computing. Whether employing an individual cloud service or transferring your entire Infrastructure into a new cloud ecosystem, you’re not alone in seeking the extra benefits of cloud technology.

From increases in scalability, security, and flexibility to savings in cost and environmental effects, there are various reasons to shift to the cloud. Of course, the shift is not as easy as it once was.

Since its birth, the cloud ecosystem has become a complex, ever-expanding multitude of providers, technology, products, and services. As you attempt to piece together the numerous combinations across these verticals, your range of alternatives can soon reach the 1000s. It rapidly becomes evident there is such a thing as too many options.

Like in every business, several companies emerge above others to become market leaders. When we think of cloud computing providers, three names top the list: Google Cloud Platform, Amazon Web Services, and Microsoft Azure.

Today, we will compare two cloud titans, Google Cloud Platform and Amazon Web Services. We’ll be thoroughly diving into each company’s products and services. Seeking to clarify and simplify by comparing these two cloud providers to make an educated selection.

Although we primarily employ the Google Cloud Platform here at Kinsta, we’ll give you an unbiased view. Both platforms provide substantial benefits, but which is appropriate for you will ultimately rely on your company’s own particular requirements.

Why Google Cloud Versus Amazon Web Services

If you intend to use cloud services, you will undoubtedly find three suppliers: Google Cloud, Amazon Web Services, and Microsoft Azure. Today, we will focus on comparing two of them: Google Cloud and AWS.

These cloud titans are famous names in the digital industry. Both businesses have reigned for more than a decade in their respective fields. Renowned as world-leading organizations, they are rigorous in pursuing innovation and quality. Each boasts a depth of IT sector experience that is hard to compete with.

With their different technology backgrounds, it is unsurprising they have established industry-leading cloud computing platforms. In September 2020, Gartner again identified Google and AWS as leaders in its Infrastructure as a Service (IaaS) Magic Quadrant.

For Amazon, this is the 10th consecutive year AWS has claimed the top-right corner of the Leader’s quadrant in Gartner’s Magic Quadrant for Cloud Infrastructure as a Service (IaaS) (IaaS). Earning the highest spot for Ability to Execute and farthest for Completeness of Vision.

Google Cloud and AWS Continue to Dominate the Industry

Google Cloud and AWS have dominated the cloud computing sector since IaaS solutions began to gain momentum in 2008.

In August 2020, Gartner’s research put Google and Amazon in a group of 5 public cloud infrastructure providers that make up 80% of the IaaS industry. This trend will only continue as both groups double down to solidify their grip on the industry.

Despite the global pandemic halting major economies, Gartner expects worldwide public cloud sales growth in 2020 by 6.3%. Driven by the growth of remote working, we might expect comparative outcomes in the cloud space, especially with the research indicating a 94% rise in the Desktop as a Service (DaaS) sector. Against this environment, you should anticipate Google and Amazon to continue expanding.

While they both started life in the IaaS arena, you can today turn to Google Cloud and AWS for 100s of solutions across IaaS, SaaS, and PaaS. Both firms continue to develop and introduce new cloud service products to their ever-expanding portfolio.

Google Cloud Platform Revenue in 2020

Alphabet’s Q4 and Fiscal Year 2019 reports revealed that the firm continues to achieve significant growth, with total revenue rising 18% yearly. While there is a lack of transparency in revenues produced by Google Cloud, the firm claimed exceptional growth of over 100%, placing the company on an annual run rate of $10 billion as of year-end.

In 2020, the onset of the Coronavirus pandemic saw Google Cloud’s parent company – Alphabet – post its first-ever quarterly sales decrease since going public in 2004. Against this grim backdrop, Google Cloud has defied the trend, seeming only to have increased growth.

In Q1, Google Cloud achieved considerable increases owing to Google Meet when its video-conferencing application became popular for distant employees. Earning release statements for Q1, Q2, and Q3 demonstrate a pattern of continuous YoY revenue increase for the Google Cloud Platform. As we approach the end of 2020, Google Cloud revenue is forecast to climb to an annual run rate of over $13 billion – a predicted 30% jump in 2019.

Amazon Web Services Revenue in 2020

In 2019, Amazon’s Q4 Earnings Release announced AWS sales revenue of approximately $10 billion. Putting the firm on an annual revenue run rate of over $40 billion.

With the onset of the Coronavirus pandemic in 2020, AWS growth has slowed dramatically. Q1, Q2, and Q3 earnings release statements indicate YoY growth falling and settling into a sub-30 % growth rate in each subsequent quarter. This is a significant slowdown from 40-50% growth during the preceding 3 years.

This is hardly a doom and gloom scenario; AWS is already on a $43 billion annual revenue run pace, with the amount set to rise once Q4 is complete. The exemption could be if you’re an Amazon shareholder, especially after Jeff Bezos ordered Amazon shareowners to “take a seat” as their COVID-19 response cuts into operational earnings.