- November 27, 2020
Major IaaS vendors have already released their September quarter results. After a slowdown in Q1 & Q2, their revenue growth rates accelerated in Q3, mainly due to: 1) the pandemic has eased and economic activities have gradually recovered; 2) new demand was rising, such as videoconferencing, online shopping & entertainment, etc. In this quarter, AWS remained strong with its annual run rate reaching US$46.4bn and growth rate staying at 29% YoY. Azure and GCP’s annual run rate grew by 48% and 45% YoY to US$25.5bn and US$13.8bn, respectively. Benefiting from the strong recovery of China economy, Alibaba Cloud recorded the highest growth rate of 69% YoY in the past seven quarters with an annual run rate reaching US$8.8bn. In the long run, we believe new demand from post-pandemic structural change and digital transformation will continue to drive the sector’s secular growth, although the recent virus cases surge again in some regions.
