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Microsoft Azure is Second to Amazon’s AWS in Cloud IaaS Market Share

Published on 03 March 17
Microsoft Azure is certainly growing in the public cloud business, since its release in 2010 and it is ranked close second to the industry leader Amazon Web Services. Even though Amazon is the cloud leader, Azure is growing at a faster pace making industry experts speculate, Can Microsoft ultimately catch up to Amazon? Whether Microsoft catches up with Amazon or not, it is of utmost importance for your business to get the cloud advantage. Collaborate with a cloud computing service provider and take your business to higher level.
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Flashback: Azure vs. AWS

Microsoft Azure was released in February 2010 as Windows Azure after its announcement in October 2008. In March 2014 it was renamed to Microsoft Azure. Amazon Web Services (AWS), on the other hand, was launched in 2006 and this first-mover advantage has paid off nicely for Amazon. AWS has secured a dominant place in the cloud with roughly 30 percent of market share and Azure holds the second position with 11 percent approximately. The total storage capacity of AWS is said to be larger than the combined storage capacity all other cloud infrastructures and this tells you where Amazon stands in comparison to its competitors.

Let data do the talking

Since Microsoft launched Azure, it has declined to disclose its real revenue. However, according to Wall Street Journal reports, an analyst at J.P. Morgan has taken a guess that Azure has pulled in 2.7 billion dollars (approx.) in revenue for all the quarters combined in 2016. Moreover, Microsoft is talking about revenue growth rates of Azure which has rose 93 percent over the years in the fourth quarter of 2016. AWS, comparatively, in that particular period was up only 47 percent. Microsoft has also confirmed that in the previous quarter its revenue has shot up to 116 percent.

Wrapping up

As per the above discussion it appears that Microsoft and its fellow challengers are going to have a hard time dethroning the current reigning cloud leader Amazon. Microsoft would need to depend on strategic planning over near-term profits in order to wrestle away leadership from Amazon, considering its customer base, substantial size and revenue difference. Amazon is currently setting the trend of price reductions and Microsoft has affirmed that it will match these cost discounts. And in order to reinforce its cloud position Microsoft is forfeiting margins in other business divisions.

Look for more expert information on Software Utvikling Specialist, Cloud Computing Tjenesteleverandør and Sharepoint Web App Utvikling.

Related Posts:

AWS (Amazon Web Services)


IaaS (Infrastructure as a Service)

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