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Samuel Meciar's avatar
Samuel Meciar
$42.7MFollowers
@sammeciarApril 28
Wow, $AMZN guide is just not bullish at all. AWS is pretty weak, guiding to low teens growth. $MSFT is clearly eating lunch here with a guide of 27% growth for Azure next Q.

I find it more and more compelling by day just owning more of Microsoft. Satya is clearly enjoying his time.
Nathan Worden's avatar
Nathan Worden
@nathanwordenApril 28
Have there been any reports of companies switching from AWS to Azure?
Samuel Meciar's avatar
Samuel Meciar
@sammeciarApril 28Author
@nathanworden I don’t think there were but the difference in tone of guides is staggering. Microsoft is guiding to rebound of spending whilst AWS says more spend optimization ahead. This is certainly interesting. If Microsoft delivers on this, that’s going to be insane.

Even more insane if you consider that Amazon is operating AWS at 21% operating margin whereas Azure is reportedly at 35%. Sick!
Rihard Jarc's avatar
Rihard Jarc
@rihardjarcApril 28
@nathanworden Two differences. OpenAI investment pushing $MSFT Azure growth because of the usage. And the second one is $AMZN has more startups and younger companies as clients where as $MSFT has more enterprises which are less cyclical. Important to add $AMZN mentioned on their earnings call that they still add the biggest number of revenue on cloud in terms of absolute sense per quarter. So the sizes of AWS and Azure are still very different.
Rihard Jarc's avatar
Rihard Jarc
@rihardjarcApril 28
The real story is $MSFT is subsidizing Azure rev growth with OpenAI investment. The $10B that $MSFT invested will probably more than 80% go to Azure revenue and the losses stay on OpenAI books. Smart play, still investors need to understand that.
Samuel Meciar's avatar
Samuel Meciar
$42.7MFollowers
@sammeciar
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