Analysts say Microsoft’s Azure is closing the gap with Amazon AWS, and will win lion’s share of the market

by Atiya
August 30, 2019

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When it comes to the Cloud computing market, there are currently only 2 real contenders: Amazon’s AWS and Microsoft’s Azure cloud servers.  Unusually for Microsoft, on this occasion, they are the runner up- with Amazon well in the lead.

Microsoft has, however, been boasting about high double-digit growth in their cloud computing division; and today, one analyst has weighed in, claiming Microsoft is starting to rapidly take market share from Amazon.

Wedbush Securities analyst Dan Ives commented the following:

In the September quarter we are seeing a clear acceleration of larger and more strategic enterprise cloud deals (both domestically as well as in Europe) as we believe Redmond is poised to win the lion’s share of the next phase of cloud deployments vs. Amazon.

While AWS remains the leader in cloud, we believe MSFT is starting to clearly “close the gap” as Redmond is seeing an acceleration of spending among enterprises around public/hybrid cloud deployments.

In Microsoft’s latest financials, Microsoft reported that Azure was up 73% year-over-year.  During the same quarter, Amazon only reported 37% year-over-year growth.

According to Stifel analyst, Erik Rasmussen, the EU is emerging as a growth market for cloud adoption.  Microsoft has recently launched localised data centres to ensure compliance with European strict data privacy laws.

In the last quarter, Microsoft’s Azure business finally drew ahead of their older legacy businesses.  We should soon have new insight into Microsoft’s cloud computing performance as Microsoft is reporting their next financials on 23rd October 2019.

Source: thestreet, Image: 5nine

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