Microsoft and Amazon have announced their financial report of the last quarter, of which cloud computing is an important part of these two reports. Cloud computing business is growing strongly, becoming the main business of software giants as well as online sales giant.
Two Microsoft Azure and Amazon Web Services platforms are accelerating in cloud race, but when it comes to this race, most experts agree that Azure is still being left behind.
However, recent figures may cause Amazon to feel startled when Microsoft reported that Azure platform grew 140%, in which the premium services revenue increased 3 times compared to the same period last year. Meanwhile, AWS has brought huge revenues of $ 2.4 billion, but the growth rate has fallen to 69% from the same period last year. While the growth rate of the previous quarter was 78% with a turnover of 1.42 billion USD.
While Amazon reported AWS as a separate business segment, Microsoft added Azure into the category “Intelligent Cloud” including products and other business services. Microsoft did not say how much Azure platform made up in Intelligent Cloud and the specific money it obtained in the last quarter: “Our server products and cloud computing has increased by 153 million revenue equivalent to 3%. Revenue from Azure platform increased 140% and higher revenue of Microsoft SQL Server has offset part of the decline in Windows Server.”
Microsoft’s total revenue from server products plus Azure platform is $ 5.1 billion in the fourth quarter of 2015. However, it is hard to compare because we cannot separate the cloud computing business from Microsoft. If just considering cloud platform, AWS can still have much greater value than Azure. The growth rate in the last quarter of AWS is extremely impressive and still brings huge revenue for Amazon. However, the second place Microsoft’s Azure is accelerating very quickly. We can say the “acceleration” of Azure is two times as high as AWS and if retaining this momentum, Azure will be able to overcome AWS someday.
Microsoft’s goal is to achieve increasing $ 20 billion revenue for cloud computing business in 2018 and the target will be large enterprises. CEO Satya Nadella said: “Moving towards cloud computing business has expanded opportunities for us on a market with growth rates higher than ever. We are in a market that is much larger than a year ago.”
The cloud computing market is expected to grow to 27.5 billion dollars in 2016, from 14.9 billion USD in 2014, in which, more than half of revenue comes from Amazon Web Services. By the end of the third quarter in 2015, AWS made up for 44% market share.
Thus, although Azure has the opportunity to take down AWS in the future, but this sprint race will be extremely difficult. Instead, perhaps Microsoft should be happy with their 2nd place and build a truly sustainable business cloud computing platform, understand the market before accelerating to catch up to Amazon.
Cloud computing is like a big piece of cake, and according to Amazon’s boss, Jeff Bezos, everyone has their part and Amazon just wants a piece rather than acquiring the entire. This will be a long-distance race and the faster is not likely the victors.