AI fuels cloud race among Microsoft, AWS, & Google

IoT Analytics has released new data indicating the influence of artificial intelligence on cloud demand, with Microsoft, AWS, and Google all vying for prominence in the sector.

The Global Cloud Projects Report and Database 2024 by IoT Analytics shows that 22% of recent cloud implementations have integrated AI elements. This significant proportion highlights the growing role of generative AI (GenAI) in driving cloud demand. According to the data, Microsoft is currently leading the overall AI and GenAI race. AWS is noted for its strength in traditional AI, whereas Google holds the highest share of AI customers relative to newly added projects.

The report, structured into an extensive repository of over 8,300 publicly known cloud projects, offers a comprehensive comparison of these major companies concerning their cloud AI and GenAI initiatives. It presents insights into the evolving landscape of cloud AI services that these hyperscalers are providing.

Key insights from the report indicate that AI is becoming a decisive factor in cloud adoption, with AI elements identified in over a fifth of recent cloud implementations. Microsoft, AWS, and Google are key players in this domain, each carving out their niches and customer bases.

Knud Lasse Lueth, CEO at IoT Analytics, commented on the findings, stating, "While it's still early days in the cloud AI race, all three major providers—Microsoft, AWS, and Google—are offering compelling AI-driven solutions for their customers. Microsoft is emerging as the leader in generative AI, while AWS maintains strength in traditional AI. As our research highlights, the competition is just heating up, and each of these cloud platforms is uniquely positioned to deliver value as AI continues to rise in importance for organisations worldwide."

Dimitris Paraskevopoulos, Senior Analyst at IoT Analytics, added, "With more than a fifth of last year's public customer references being AI, it's clear the hyperscalers are relying heavily on that front to increase their customer base. Microsoft might be winning for now, but the race is just starting and it's already heated."

The research underscores the strategic moves of Microsoft, AWS, and Google as they strive to expand their market shares and influence through AI integration. As the demand for AI capabilities within cloud infrastructure continues to grow, the competition among these tech giants is expected to intensify further.