August 5, 2024 – The top 3 cloud computing companies, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, generated a combined total of more than $65 billion in sales during the second quarter of 2024. AWS remains the market leader, capturing 32% of the global cloud market share. Its parent company, Amazon, reported $148 billion in sales for Q2 2024.

Microsoft Azure reported strong double-digit year-over-year growth in its intelligent cloud business, which includes Azure and other cloud services.

Google Cloud also achieved double-digit growth in its cloud revenue, but it remains the smallest of the big three cloud providers.

• Combined sales of AWS, Microsoft Azure, and Google Cloud in Q2 2024: Over $65 billion
• AWS cloud market share in Q2 2024: 32%
  Sales of Amazon in Q2 2024: $148 billion
• Microsoft Intelligent Cloud (which include Azure) revenue in Q2 2024: $28.5 billion
• The sales of Google Cloud in Q2 2024 was $10.3 billion

Solganick continues to see strong M&A demand from strategic and financial buyers who continue to expand their reach and market share. We are also noting that the larger cloud computing services vendors (i.e. Accenture, PwC, Wipro, Cognizant, Insight, NTT Data, etc.) more often provide hybrid cloud applications and solutions to their enterprise customers. 

The cloud IT services sector has been experiencing a surge in M&A activity driven by several factors:

• Consolidation: Larger players are acquiring smaller companies to expand their service offerings, geographical reach, and customer base.
• Technological advancements: Companies are seeking to acquire specialized expertise in emerging technologies like AI, machine learning, and cybersecurity.
• Market expansion: Companies are looking to enter new markets or strengthen their position in existing ones through acquisitions.

Notable Recent Trends in Cloud IT Services M&A:

• Cybersecurity: A significant focus on acquiring cybersecurity firms to enhance cloud security offerings.
• AI and Machine Learning: Investments in companies specializing in AI and ML to drive innovation and automation.
• Cloud Infrastructure and Services: Consolidation among cloud infrastructure providers and acquisitions of companies offering specialized cloud services.

Solganick is active in cloud computing, applications and services mergers and acquisitions.  Please contact us for more information or to inquire about a transaction opportunity.