Microsoft’s Azure performance compared with AWS
Earlier in this series, we discussed Microsoft’s (MSFT) Azure performance in fiscal 1Q18. Let’s see how the company’s cloud computing platform performed in the most recent quarter.
Although Microsoft doesn’t provide a breakdown of Azure’s revenues, its consistently high double-digit growth supports Microsoft’s improving performance in the ultra-competitive cloud space. In fiscal 1Q18, Azure grew 90%. Research firm Canalys estimates that Azure generated $2.0 billion in revenues for Microsoft.
Microsoft’s Azure growth is impressive when compared to 45% growth posted by Amazon’s (AMZN) AWS (Amazon Web Services) in the comparable quarter. AWS grew to become a $4.8 billion business in 3Q17.
According to CNBC, Azure’s revenue growth has exceeded AWS’s growth for at least eight straight quarters.
Amazon: Leader in the cloud space
Despite posting better revenue growth than AWS, Microsoft still has a long way to go in the overall cloud space. According to Synergy Research, Amazon is the undisputed leader in the cloud space with a 35% market share. Microsoft has an ~12% market share
In fiscal 2017 until the most recent quarter, AWS has posted revenues of $12.3 billion. AWS appears to be well on its way to hit $18.0 billion in revenues for fiscal 2017.
Although Microsoft is ahead of Google (GOOG), IBM (IBM), and Oracle (ORCL) in the cloud space, the chart above shows that in terms of market share, it still has a long way to go. In 2Q17, IBM and Google had market share figures of ~7.5% and ~5.0%, respectively.
Although Oracle continues to scale up in the cloud space, it has not been able to crack the top five spots in terms of market share. Along with Rackspace, Alibaba and Oracle are among the next ten players in the cloud space.