Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on reddit

AWS vs Azure Revenue Growth 2016-2020

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Public cloud industry has been experiencing robust growth as organizations shift their focus towards digital transformation strategies and become increasingly data driven. Organizations have adopted cloud computing services for a myriad of reason, such as scalability, cost-savings, productivity, performance, scalability and redundancy.

Understanding Public Cloud

The industry is rife with competition and Amazon, Microsoft, Google, IBM, Salesforce and Alibaba are some of the leading names in the sector. Speaking about Amazon Web Services (AWS) and Microsoft Azure — the largest of the lot — they  both offer a comprehensive portfolio of services with global outreach and have evolved as industry leaders in Infrastructure-as-a-service (IaaS), Software-as-a-service (SaaS) and Platform-as-a-service (PaaS) cloud computing modes.

  • Infrastructure-as-a-service (IaaS) is a form of cloud computing model in which the cloud provider hosts the infrastructure components such as networking hardware, servers, instead of the traditional on premise data center. In IaaS, resources such as a server is distributed as a service thus, allowing for dynamic scaling.
  • Platform-as-a-service (PaaS) is another form of cloud computing model wherein a third-party provider delivers the hardware and software tools on its own infrastructure, and is usually needed for application development.
  • Software-as-a-service (SaaS) is a way of delivering applications over the Internet thus, reducing the struggle of installing and maintaining the software. These applications will run on a SaaS provider’s servers. SaaS provides several advantages such as seamless integration, lower initial costs and easy upgrades.

Industry Trends

Amazon Web Service (AWS), a subsidiary of Amazon in the web service and cloud computing industry, provides a wide range of services in different domains such as computing, networking, storage, deployment, developer tools, database, tools for IoT and others. This service is marketed to subscribers as a means of obtaining large scale computing capacity cheaply and more conveniently saving them from building an actual physical server farm.

VendorRevenue Growth in Q2 2019
Amazon AWS35.6%
Microsoft Azure64.4%

Microsoft Azure is a trusted cloud computing service provided by Microsoft Corporation with comprehensive compliance coverage and AI-based security built in. Formerly known as Windows Azure, the service was released on February 1,2010. There are over 600 Azure services some of which are computer services, storage services, content delivery network (CDN), data management, media services like content protection, messaging and many others.

While Microsoft Azure focusses strongly on public cloud rather than hybrid or private cloud, Azure’s true strength is hybrid cloud. Even though Microsoft came late to the cloud market with Azure, it managed to capture an impressive market share by exploiting its on-premises software- Windows and Microsoft deployed by many enterprises, thus being an enterprise-ready platform. The imperfections of these platforms lie in their pricing structure (AWS) and their service experience (Azure).

For the second quarter ended July 31, 2019, Microsoft Azure has reported a 64.4% revenue growth while AWS has reported only 35.6% revenue growth compared to the same period in 2018. This can primarily be attributed to the former’s dominance in hybrid cloud platform and also to the wide array of services offered by it.

 

 

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email