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# AWS vs Azure vs Google Cloud: Growth, Backlog and Capacity Compared
- URL: https://www.sotkn.com/explained/aws-vs-azure-vs-google-cloud/
- Published: 2026-10-31T01:21:14.000Z
- Updated: 2026-10-31T01:21:14.000Z
- Description: AWS is still the biggest cloud, but Azure and Google Cloud are growing faster. All three now hold more than $560 billion of signed backlog each and all three say the same thing: they cannot add capacity as fast as customers sign for it.
- Author: Sean
- Tags: Versus, #desk-explained

EXPLAINED · Versus · Last reviewed: 31 Oct 2026 · Next review: after the October–December 2026 quarterly results from Amazon, Microsoft and Alphabet

AWS, Microsoft Azure and Google Cloud are the three biggest public clouds: the Amazon, Microsoft and Alphabet businesses that sell computing power, storage and AI chips over the internet.

**In short.** AWS is still the biggest cloud, with about 26% of the market in July–September 2026, against about 19% for Microsoft and 16% for Google. Azure and Google Cloud are growing faster. All three hold more than $560 billion of signed contracts each on their own measures, and all three said in late October that they cannot add capacity as fast as customers sign. Our read: the difference between them matters less this year than the step they share. The stuck step is the handover of finished, powered capacity, and the people paid first are the ones who build and fill the halls.

Why an investor cares: these three businesses decide where most of the money for AI data centres, chips and power is spent. Their backlog is the order book for everyone further down; our [guide to what a hyperscaler is](https://www.sotkn.com/explained/hyperscaler-explained/) covers how that spending flows down the stack.

## What is the difference between AWS, Azure and Google Cloud?

Size against speed. AWS is the largest public cloud and the most profitable of the three on reported numbers. Azure and Google Cloud are smaller but have been growing faster, and in 2026 both are leaning hard on AI work.

They also sit inside very different parent companies. AWS is a segment of Amazon, which also runs retail stores and logistics. Azure is part of Microsoft, which also sells Microsoft 365 and Windows. Google Cloud is a segment of Alphabet, whose main business is still search advertising.

| July–September 2026                 | AWS (Amazon)                                        | Azure (Microsoft)                                    | Google Cloud (Alphabet)                                   |
| ----------------------------------- | --------------------------------------------------- | ---------------------------------------------------- | --------------------------------------------------------- |
| **Market share (Synergy estimate)** | 26%                                                 | 19%                                                  | 16%                                                       |
| **Reported revenue**                | $46.0B (AWS segment)                                | Not disclosed in dollars                             | $30.7B (includes Workspace and TPU system sales)          |
| **Growth from a year earlier**      | 39%                                                 | 48%                                                  | 103%                                                      |
| **Operating margin**                | 38.7%                                               | Not disclosed                                        | 36.2% (23.7% a year earlier)                              |
| **Signed backlog, 30 Sep**          | About $578B, average 6.1 years left                 | $677B, all Microsoft commercial, average 2.3 years   | $560.8B, just over 55% due within 24 months               |
| **Quarter’s capex**                 | $77.3B (all of Amazon)                              | $45.2B incl. $7.4B finance leases (all of Microsoft) | $51.4B (all of Alphabet)                                  |
| **2026 capex guide**                | About $220B cash capex                              | About $170B, calendar year                           | $195–205B                                                 |
| **What they said about capacity**   | Customers take it almost as fast as it is installed | Some outside capacity deliveries were late           | Supply constrained; outside capacity added from end of Q3 |

*From the companies’ third-quarter 2026 releases, Forms 10-Q and calls, and Synergy Research Group (29 October 2026). Microsoft’s quarter is its fiscal 2027 first quarter. Capex and backlog scopes differ, so the rows are not like-for-like.*

Each company also makes its own AI chips: Trainium at Amazon, Maia at Microsoft and the TPU at Google. Our [guide to who makes custom AI chips](https://www.sotkn.com/explained/who-makes-custom-ai-chips/) covers who designs and builds them.

## Which is the biggest cloud provider?

AWS. Synergy Research Group, which tracks the market, estimated on 29 October 2026 that companies spent $167.7 billion on cloud infrastructure services in July–September, up 55% from a year earlier. Amazon held 26% of it, Microsoft 19% and Google 16%.

| Provider                  | Share of Q3 2026 market | Implied quarterly revenue (our arithmetic) |
| ------------------------- | ----------------------- | ------------------------------------------ |
| **Amazon (AWS)**          | 26%                     | About $43.6B                               |
| **Microsoft (Azure)**     | 19%                     | About $31.9B                               |
| **Google (Google Cloud)** | 16%                     | About $26.8B                               |
| **Everyone else**         | 39%                     | About $65.4B                               |

*Shares and the $167.7 billion market size are Synergy Research Group estimates for cloud infrastructure services. The dollar column is Second Order arithmetic from rounded shares, so treat it as approximate.*

Together the three hold about 61%. Synergy said Microsoft and Google are growing much faster than Amazon, and that Oracle and a group of neoclouds, including CoreWeave, Crusoe, Nebius and Nscale, grew fastest of all and are taking share from the established providers.

## Which cloud is growing fastest?

Google Cloud, on reported numbers. Its revenue rose 103% to $30.7 billion in July–September 2026, from $15.2 billion a year earlier. Alphabet said sales of TPU systems, Google’s own AI chips sold as whole systems to outside customers, were a meaningful part of that growth.

Azure grew 48%, and Microsoft expects 49% to 50% in October–December. AWS grew 39% to $46.0 billion, its fastest in nearly five years. Google Cloud even added more dollars: about $15.6 billion more revenue than a year earlier, against about $13.0 billion for AWS (our arithmetic from the reported figures), though part of Google’s gain came from TPU system sales.

Google’s TPU sales make its growth hard to compare. Selling a rack of chips is a one-off sale, while cloud usage is billed over time. Our [Catalyst note on Alphabet’s TPU system sales](https://www.sotkn.com/catalyst/alphabet-inventory-13-3b-tpu-system-sales/) covers how that changes Google’s cash cycle.

## Why can’t you compare their reported numbers directly?

Because each company draws the line in a different place. Amazon reports AWS as its own segment with revenue and operating income. Microsoft reports only Azure’s growth rate, and its $63.9 billion Microsoft Cloud figure also includes Microsoft 365 and other online services.

Google Cloud includes Google Workspace, the office software, as well as TPU system sales. That is why Synergy’s like-for-like estimate puts Google’s infrastructure business at about $26.8 billion a quarter on our arithmetic, below its reported $30.7 billion.

Capex has the same problem. Each company reports spending for the whole group, not the cloud alone. Amazon’s figure includes warehouses, and Microsoft counts finance leases as capex when they start, which added $7.4 billion this quarter.

## Which cloud has the biggest backlog?

All three are close, but they measure different things. Backlog, reported as remaining performance obligations, is signed contract value not yet billed. AWS reported about $578 billion and Google Cloud $560.8 billion at 30 September 2026.

![AWS vs Azure vs Google Cloud: signed backlog at 30 September 2026, AWS about $578B, Google Cloud $561B and Microsoft commercial $677B](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/aws-azure-google-cloud-backlog-sep-2026.png)

Signed backlog at 30 September 2026\. Different scopes; not like-for-like.

Microsoft’s commercial backlog was $677 billion, up 73%, but it covers all of Microsoft’s commercial contracts, not only Azure. It is also shorter: an average of 2.3 years, with about 30% due within 12 months. AWS contracts have 6.1 years left on average, and Google expects just over 55% of its backlog within 24 months.

Our arithmetic: at the current quarterly pace, AWS’s backlog equals about 3.1 years of AWS revenue and Google Cloud’s about 4.6 years. Our [guide to remaining performance obligations](https://www.sotkn.com/explained/remaining-performance-obligation-explained/) explains how this kind of backlog turns into revenue.

## Which is the most profitable?

AWS on reported numbers. It made $17.8 billion of operating income in July–September, a 38.7% margin. Google Cloud made $11.1 billion, a 36.2% margin, up from 23.7% a year earlier as revenue doubled.

Microsoft does not report a margin for Azure, so there is no direct comparison. Google warned that its cloud margin will come under pressure in the near term because it has started paying for outside computing capacity to meet demand.

## How much is each one spending on capex?

More than ever, and more again next year. Amazon spent $77.3 billion on property and equipment in July–September and expects about $220 billion of cash capex in 2026, most of it for AWS. Alphabet spent $51.4 billion and kept its 2026 range at $195 billion to $205 billion.

Microsoft spent $45.2 billion including finance leases, of which $39.4 billion was cash. It now expects about $170 billion for calendar 2026, which it put down to the delayed outside capacity. About three quarters of its spending goes on short-lived assets, mainly CPUs and GPUs.

Our arithmetic: together that is about $585 billion to $595 billion in 2026 across the three groups. All three said 2027 will be higher. Our [guide to cash capex](https://www.sotkn.com/explained/cash-capex-explained/) and [guide to free cash flow](https://www.sotkn.com/explained/free-cash-flow-explained/) cover what this does to the cash each company keeps.

## Why are all three clouds short of capacity?

Because customers are signing faster than halls, power and chips can be put to work. The three companies used different words for the same problem on their October calls.

Amazon’s chief executive, Andy Jassy, said AWS installs an AI accelerator about every 14 seconds and that customers take capacity almost as fast as it goes in. He said the largest blocks, of hundreds of megawatts and sometimes a gigawatt, are reserved well in advance, and that AWS can see demand into 2027 and 2028.

Alphabet called its environment supply constrained. It started using third-party computing capacity at the end of September and will use more in October–December. Microsoft said some third-party capacity it expected in the quarter was delayed, even as it added 24 data centres across five continents.

![AWS vs Azure vs Google Cloud: the five steps from signed customer contracts to capex, chips and racks, hall handover and billed revenue, with the hall handover as the stuck step](https://storage.ghost.io/c/cd/10/cd10e222-131f-4ba4-b4a9-ca4214e8c12d/content/images/2026/10/aws-azure-google-cloud-capacity-step.png)

Stuck step: the handover of finished, powered capacity. Second Order.

## Who gets paid, and where is the stuck step?

The suppliers are paid first. Chip makers, memory makers and server builders are paid when equipment ships, which is why about three quarters of Microsoft’s capex goes on short-lived kit. The companies that build and power the halls are paid as each building is finished.

Outside capacity providers are paid next. All three clouds now buy capacity from other operators when their own halls are not ready, which is part of why Synergy sees neoclouds taking share. Our [neocloud vs hyperscaler guide](https://www.sotkn.com/explained/neocloud-vs-hyperscaler/) covers how those operators differ from the big three.

The cloud is paid last, when the capacity is live and the customer starts using it. Our read: the stuck step is the handover of finished, powered capacity. Microsoft’s late deliveries cut its capex and slowed its supply; our [Analysis on Microsoft’s GPU handover](https://www.sotkn.com/analysis/microsoft-gpu-handover-stuck-step-what-price-assumes/) works through what that costs.

Asia is part of the same build. Synergy named Indonesia and Taiwan among the fastest-growing cloud markets by country in local currency. Our [Singapore Markets door](https://www.sotkn.com/markets/singapore/) tracks the data centre side of the region, where the same capacity shortage shows up as power and land limits.

## What would change the view?

- **Capacity catches up.** If Microsoft’s delayed outside capacity arrives in the first half of 2027, its fiscal second half, as it expects and Google’s outside capacity ramps on time, growth would rise, and the bind would move from halls back to demand.
- **Backlog stops growing.** If backlog flattens while capex keeps rising, the problem shifts from too little capacity to too much, and the suppliers’ order books would be the first to feel it.
- **Neoclouds keep taking share.** If outside operators keep winning the largest AI contracts, more of the profit goes to them and less to the big three, even if the big three keep spending.

## What to check next

Watch the October–December results: Alphabet said it will give 2027 capex detail then, Microsoft guided Azure to 49% to 50% growth, and Amazon said it will spend meaningfully more in 2027\. Our [Catalyst note on Amazon’s unstarted leases](https://www.sotkn.com/catalyst/amazon-unstarted-leases-165b-aws-backlog-578b/) and our [Wire on Alphabet’s $48B of data centre backstops](https://www.sotkn.com/wire/alphabet-48b-data-center-backstops-wire/) track the commitments behind the capacity.

## Common misconceptions

- **People assume Azure is bigger than AWS.** Actually Microsoft does not report Azure revenue in dollars, and Synergy’s estimate puts Microsoft at 19% of the market against Amazon’s 26%.
- **People assume Google Cloud’s 103% growth is all cloud usage.** Actually it includes sales of TPU systems and Google Workspace, so it is not like-for-like with AWS.
- **People assume the biggest backlog wins.** Actually Microsoft’s $677 billion covers all its commercial contracts, not only Azure, and runs for about 2.3 years on average, while AWS’s $578 billion runs about 6.1 years.
- **People assume the clouds are short of money.** Actually they are short of finished, powered capacity; all three are raising capex and still cannot add it as fast as customers sign.

## FAQ

**What is the difference between AWS, Azure and Google Cloud?**  
AWS is the biggest public cloud, with about 26% of the world market in July–September 2026\. Microsoft Azure, at about 19%, and Google Cloud, at about 16%, are smaller but growing faster. Each sells computing, storage and AI chips over the internet, but they report their numbers in different ways.

**Which is the biggest cloud provider in 2026?**  
Amazon Web Services. Synergy Research Group estimated on 29 October 2026 that Amazon held 26% of the $167.7 billion cloud infrastructure market in the third quarter, ahead of Microsoft at 19% and Google at 16%.

**Which cloud is growing fastest?**  
Google Cloud on reported numbers. Its revenue rose 103% to $30.7 billion in July–September 2026, helped by sales of TPU systems. Azure grew 48% and AWS 39%, though AWS is growing from a much larger base.

**Is Azure bigger than AWS?**  
No. Microsoft does not publish Azure revenue in dollars, only its growth rate, but Synergy’s estimate puts Microsoft at 19% of the cloud infrastructure market against Amazon’s 26% in the third quarter of 2026.

**Which cloud has the biggest backlog?**  
On reported figures, Microsoft’s commercial remaining performance obligation is the largest at $677 billion, but it covers all of Microsoft’s commercial contracts, not just Azure. AWS reported about $578 billion and Google Cloud $560.8 billion at 30 September 2026.

**Why are AWS, Azure and Google Cloud short of capacity?**  
Because customers are signing for AI computing faster than data centres, power and chips can be installed. Amazon said customers take capacity almost as fast as it is installed, Alphabet called its environment supply constrained, and Microsoft said some outside capacity it expected was delivered late.

**Is this a list of stocks to buy or sell?**  
No. This page compares how the three biggest clouds are doing and where they are stuck. It does not rank companies or give buy or sell calls. Not investment advice. Do your own research.

Related: [who the hyperscalers are](https://www.sotkn.com/explained/who-are-the-hyperscalers/); [hyperscaler](https://www.sotkn.com/explained/hyperscaler-explained/); [neocloud vs hyperscaler](https://www.sotkn.com/explained/neocloud-vs-hyperscaler/); [TPU vs GPU](https://www.sotkn.com/explained/tpu-vs-gpu/); [remaining performance obligation](https://www.sotkn.com/explained/remaining-performance-obligation-explained/); [capex vs depreciation](https://www.sotkn.com/explained/capex-vs-depreciation/).

## Stack doors

Layer: [Hyperscalers](https://www.sotkn.com/stack/hyperscalers/). Also: [Amazon](https://www.sotkn.com/stack/hyperscalers/what-does-amazon-do/), [Microsoft](https://www.sotkn.com/stack/hyperscalers/what-does-microsoft-do/), [Google](https://www.sotkn.com/stack/hyperscalers/what-does-google-do/) and [Oracle](https://www.sotkn.com/stack/hyperscalers/what-does-oracle-do/). Markets: [United States](https://www.sotkn.com/markets/us/).

[Get the Wire](https://www.sotkn.com/#/portal/signup) — short daily notes when cloud backlog, capex and capacity move.

Not investment advice. Do your own research.

**How we check this**

Revenue, operating income, backlog and capital spending come from Amazon’s, Alphabet’s and Microsoft’s third-quarter 2026 earnings releases and Forms 10-Q, and from their earnings calls as transcribed by Stock Analysis and The Motley Fool. Market shares and the market size come from Synergy Research Group’s 29 October 2026 estimate. The implied dollar revenue by provider, years of backlog at the current pace and the combined 2026 capex range are our arithmetic and are labelled as ours on the page. The comparison of who gets paid and the stuck step are our read. The featured photograph is credited in its caption. This page compares the three biggest clouds. It does not rank companies or give buy or sell calls. Not investment advice. Do your own research.

**Last reviewed:** 31 Oct 2026 · **Next review:** after the October–December 2026 quarterly results from Amazon, Microsoft and Alphabet

Spot an error? [Tell us](mailto:sean@thekopinotes.com) and we will correct it and note the change here.

[Our editorial standards →](https://www.sotkn.com/editorial-standards/)

## References

1. [Synergy Research Group — Cloud market growth rate surges to well over 50% per year; Q3 revenues reach $168 billion (29 Oct 2026)](https://www.srgresearch.com/articles/cloud-market-growth-rate-surges-to-well-over-50-per-year-q3-revenues-reach-168-billion?ref=sotkn.com) — Q3 2026 cloud infrastructure services $167.7B, up 55%; worldwide share Amazon 26%, Microsoft 19%, Google 16%; Oracle and neoclouds growing fastest and eroding established providers’ share; US 44% of the market; Indonesia and Taiwan among the fastest-growing countries
2. [Amazon — Amazon.com announces third quarter results (29 Oct 2026)](https://ir.aboutamazon.com/news-release/news-release-details/2026/Amazon-com-Announces-Third-Quarter-Results/?ref=sotkn.com) — AWS segment sales $45,984M, up 39%; AWS operating income $17,773M, margin 38.7%; purchases of property and equipment $77.3B in the quarter; 2026 cash capital expenditures about $220B
3. [Amazon.com, Inc. — Form 10-Q for the quarter ended 30 September 2026 (30 Oct 2026)](https://www.sec.gov/Archives/edgar/data/1018724/000101872426000040/amzn-20260930.htm?ref=sotkn.com) — performance obligations, primarily AWS, of about $578B at 30 September 2026; weighted-average remaining life of long-term contracts 6.1 years
4. [Amazon — Q3 2026 earnings call transcript, via Stock Analysis (29 Oct 2026)](https://stockanalysis.com/stocks/amzn/transcripts/720308-q3-2026/?ref=sotkn.com) — an AI accelerator installed about every 14 seconds; customers taking capacity almost as fast as it is installed; large blocks of hundreds of megawatts reserved well in advance; visibility into 2027 and 2028; AWS annualised run rate $184B
5. [Alphabet — Third quarter 2026 results, earnings release (Exhibit 99.1, 28 Oct 2026)](https://www.sec.gov/Archives/edgar/data/1652044/000165204426000080/googexhibit991q32026.htm?ref=sotkn.com) — Google Cloud revenue $30,709M against $15,157M, up 103%, with TPU system sales a meaningful contributor; Google Cloud operating income $11,121M against $3,594M; purchases of property and equipment $51,355M
6. [Alphabet Inc. — Form 10-Q for the quarter ended 30 September 2026 (29 Oct 2026)](https://www.sec.gov/Archives/edgar/data/1652044/000165204426000084/goog-20260930.htm?ref=sotkn.com) — revenue backlog $567.7B, of which $560.8B Google Cloud; just over 55% expected to be recognised over the next 24 months
7. [Alphabet — Q3 2026 earnings call transcript, via The Motley Fool (call 28 Oct 2026)](https://www.fool.com/earnings/call-transcripts/2026/10/29/alphabet-googl-q3-2026-earnings-call-transcript/?ref=sotkn.com) — Google Cloud operating margin 36.2% against 23.7%; supply-constrained environment; third-party compute capacity from the end of Q3, ramping in Q4, with near-term margin headwinds; 2026 capex guide $195–205B, significantly higher in 2027
8. [Microsoft — FY27 first quarter press release (28 Oct 2026)](https://www.microsoft.com/en-us/Investor/earnings/FY-2027-Q1/press-release-webcast?ref=sotkn.com) — Azure revenue up 48%; Microsoft Cloud revenue $63.9B, up 30%; commercial remaining performance obligation up 73% to $677B
9. [Microsoft — FY2027 first-quarter earnings call transcript, via The Motley Fool (call 28 Oct 2026)](https://www.fool.com/earnings/call-transcripts/2026/10/29/microsoft-msft-q1-2027-earnings-call-transcript/?ref=sotkn.com) — capex $45.2B including $7.4B finance leases, cash paid for PP&E $39.4B, as some third-party capacity deliveries were delayed; about three quarters on short-lived assets; RPO weighted duration 2.3 years, about 30% in 12 months; 24 new data centres; calendar 2026 capex about $170B; Azure guide 49–50% growth for the December quarter

S

**[Sean](https://www.sotkn.com/author/sean/)**

Writes Second Order by TKN — a plain-English map of AI infrastructure and semiconductors for non-specialist investors. Focus: who gets paid, where money sticks, and which step is stuck.

Covers AI infrastructure, semiconductors, and second-order stack reads.

[Author page →](https://www.sotkn.com/author/sean/) · [Editorial standards →](https://www.sotkn.com/editorial-standards/)